Official letter No.1812/CT-TTHT dated 21 october 2013 of Long An taxation department in guidance of insurance and pre-recognition expenses
According to official letter No.1812/CT-TTHT:
In case, an enterprise buys car insurance, cash insurance, fixed asset insurance, imported goods insurance, fire insurance for business and production, if these payments have enough legal invoices, vouchers under regulations of Law, they will include in deductible expenses when taxable income is determined. In case, the enterprise buys motorbike insurance for employees, the payments will not be included in deductible expenses.
In case, the enterprise has recognized CIT assessable revenue but not yet arises full expenses, the enterprise is allowed to pre-recognize the business and production expenses to ensure that the conformity between revenue and expense in the period. Pre-recognition expenses are included deductible expenses when determining taxable income for CIT finalization of 2012. When finishing contracts and having invoices, the enterprise must adjust to increase or decrease the expenses as actual expenses
