Deductible expenses due to the impact of natural disasters according to Official Letter No. 8763/CTHDU-TTHT dated 16 October 2024 issued by the Hai Duong Tax Department
- In case the Company has raw materials such as coal and ore that incur losses due to natural disasters, the Company must prepare complete, timely and accurate accounting documents as prescribed in Article 18 of the Accounting Law No. 88/2015/QH13; expenses related to the value of losses from natural disasters that are not compensated may be included in deductible expenses when determining CIT taxable income if they meet the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC.
- In case the asset (such as the factory) has not yet reached the end of its depreciation period but is destroyed due to natural disaster, any costs incurred for repairing or replacing the damaged property for continued use without compensation can be included in the deductible expense when determining CIT taxable income according to the provisions of Article 4 of Circular No. 96/2015/TT-BTC. If this fixed asset cannot be repaired or restored, the Company must comply with the provisions of Article 9 of Circular No. 45/2013/TT-BTC.
- In case the Company recovers assets after a storm, which are tangible fixed assets that decrease due to liquidation, loss, dismantling of one or several parts, etc., the Company must follow procedures and accounting as outlined in Article 35 of Circular No. 200/2014/TT-BTC.