Memo Further Explains 2009 Corporate Income Tax Finalization
Jun. 24 – An official letter released by the Ministry of Finance on June 7 provided additional guidelines on the 2009 Corporate Income Tax finalization process.
Letter 7250/BTC-TCT states that tuition fees for children of expatriates up to the high school level will be considered tax deductible as long as it meets administrative requirements. It further states that tax loss beginning in 2009 will be carried forward and offset against taxable income of a maximum of five years.
The letter also clarifies that income derived from selling fixed assets and scraps not directly related to the incentive business will be considered as other income and meted a 25 percent tax.
Foreign exchange gains coming directly from the company’s main business activity will be considered as other income and taxed 25 percent.
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