On March 16, 2018, the Ministry of Finance issued Circular No.25/2018/TT-BTC on providing guidance on the Decree No.146/2017/ND-CP dated 15/12/2017 and amending or supplementing the Circular No.78/2014/TT-BTC dated 18/06/2014 and the Circular No.111/2013/TT-BTC dated 15/08/2013 of the Ministry of Finance. The Circular took effect on May 1, 2018.

Accordingly, Circular No.25/2018/TT-BTC stipulates the expenses to be deducted and not deducted when calculating enterprise income tax as follows:

1. Enterprises shall not be allowed to deduct the expenses when calculating enterprise income tax in excess of VND 3 million/ month/person for deduction for voluntary retirement or voluntary retirement insurance. life insurance for employees; the amount exceeds the level prescribed by the law on social insurance and health insurance in order to deduct social security funds, the health insurance fund and the unemployment insurance fund for laborers.
2. Enterprises are included in the expenses to be deducted when calculating enterprise income tax for: Expenditures directly paid to laborers, such as expenses for their own families and families dynamic; vacation expenses, medical treatment expenses; Expenses for supplementary training knowledge at training establishments; Expenditures to support families of workers affected by natural disasters, enemy sabotage, accidents, sickness … Total welfare expenditure does not exceed one month’s actual average salary.

With specific and detailed guidelines, Circular No.25/2018/TT-BTC is expected to contribute to facilitate enterprises in implementing taxation activities quickly and mainstream, at the same time, strengthen the management effectiveness of state agencies in those activities.