DECREE 68/2020/ND-CP ABOUT INCREASING THE CEILING OF DEDUCTIBLE INTEREST EXPENSES TO 30%
Decree 68/2020/ND-CP About increasing the ceiling of deductible interest expenses to 30% as follows:
Accordingly, the total interest expense is deducted when determining the taxable income for enterprises having associated transactions:
- Total interest expenses (after deducting deposit and lending interest) incurred in the period to be deducted when determining taxable income do not exceed 30% of the total net profit from business activities in the period plus Interest expense (after deducting deposit and loan interest) incurred in the period plus amortization expense incurred in the period.
- The part of loan interest that is not deductible as prescribed in Point a Clause 3 Article 8 of Decree No. 20/2017 / ND-CP (amended in Article 1 of Decree No. 68/2020/ND-CP) is transferred to the next tax period, when determining total deductible interest expenses, if the total deductible interest expenses incurred in the next tax period are lower than the level specified at Point a, Clause 3, Article 8 of Decree 20/2017 / ND- CP (amended in Article 1 of Decree 68/2020 / ND-CP). The time for transferring loan interest expenses shall be no more than 05 years from the year following the year the loan interest expenses are not deducted.
- Retrospective corporate income tax period affected by Clause 3, Article 8 of Decree No. 20/2017 / ND-CP is allowed to retrospectively specified in Article 2 of this Decree.
