Uni 28-01-2019 - Tax policy for factory rentals before establishment

Official letter 433/CT-TTHT dated 25 January 2019 Of Hai Duong Taxation Department guiding on factory rentals:

If the founders of the Company have documents authorizing individuals to rent factories before establishing the Company, but the use of this factory relates to the establishment of the enterprise, there are sufficient invoices. The words according to regulations (invoices, vouchers in the name of authorized individuals, invoices with a value of twenty million dong or more must be paid via banks), then gradually allocated into business expenses and accounted for Cost deduction is deducted when calculating CIT, not exceeding 3 years from the time the enterprise commences operations.

When starting production and business activities from the time of being granted a business establishment license but not yet generating revenue, there are arising expenses for renting workshops to maintain the production and business activities of the enterprise. where these expenditures meet the prescribed conditions, this expense shall be accounted as deductible expenses when determining taxable income.