In what cases is a product that has expired and must be destroyed considered a deductible expense when determining income subject to corporate income tax?

Are products that have expired and must be destroyed counted as deductible expenses when determining income subject to corporate income tax?

1. Can products that have expired and must be destroyed be included in deductible expenses when determining income subject to corporate income tax?

Pursuant to Clause 2, Article 6 of Circular 78/2014/TT-BTC, amended by Article 4 of Circular 96/2015/TT-BTC, it is stipulated as follows:

Deductible expenses and cannot be deducted when determining taxable income

2. Expenses that are not deductible when determining taxable income include:

2.1. The expense does not meet the conditions specified in Clause 1 of this Article.

In case an enterprise has expenses related to the value of losses due to natural disasters, epidemics, fires and other force majeure events that are not compensated, this expense will be included in deductible expenses when determining taxable income, specifically as follows:

Enterprises must clearly determine the total value of losses due to natural disasters themselves. disasters, epidemics, fires and other force majeure cases as prescribed by law.

The value of losses due to natural disasters, epidemics, fires and other force majeure cases that are not compensated is determined by the total value of the loss minus the value of the insurance enterprise or other organization or individual that must compensate according to the provisions of law.

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b) Goods damaged due to changes in the biochemical process Naturally, expired goods that are not compensated are included in deductible expenses when determining taxable income.

Thus, for expired products that must be destroyed, if the enterprise has complete records and documents proving that the expired goods are not compensated, they will be included in deductible expenses in the year of destruction.

2. What are the documents and records for expired goods that are not compensated?

Pursuant to Clause 2, Article 6 of Circular 78/2014/TT-BTC, amended by Article 4 of Circular 96/2015/TT-BTC, records for goods damaged due to changes in natural biochemical processes and expired goods are included in deductible costs as follows:

– Value inventory record Damaged goods are prepared by the enterprise.

The inventory record of the value of damaged goods must clearly identify the value of damaged goods and the cause of damage; type, quantity, value of recoverable goods (if any) accompanied by a list of import and export of damaged goods with confirmation signed by a legal representative of the business and responsible before the law.

– Compensation records for damages accepted by the insurance agency (if any).

– Records stipulating the responsibilities of the organization or individual that must compensate (if any). yes).

The above documents are kept at the enterprise and presented to the tax authority when requested by the tax authority.

3. When the temporary payment of corporate income tax is in excess, how should it be handled?

Pursuant to Article 60 of the Law on Tax Administration 2019, which stipulates the handling of tax amounts, late payment interest, and overpayment fines. When the temporary payment of corporate income tax is in excess, it will be resolved as follows:

– Enterprises whose amount of temporarily paid corporate income tax paid in the year is greater than the tax amount due paid during the year, the overpaid tax amount can be offset against the outstanding tax amount or deducted from the tax amount payable in the next tax payment or the tax amount will be refunded when the taxpayer no longer owes tax, late payment interest, or fines.

In case the enterprise requests to offset the overpaid corporate income tax amount with the outstanding tax amount, late payment interest, or fine, the late payment interest corresponding to the offset amount in the period from the date of arising will not be calculated. the overpayment until the date the tax administration agency makes the offset.

– In case an enterprise requests a refund of the overpaid corporate income tax amount, the tax administration agency must issue a decision to refund the overpaid tax amount or issue a written response clearly stating the reason for non-refund within 05 working days from the date of receipt of the written request.

– Do not refund the overpaid corporate income tax amount and the tax administration agency will liquidate the overpayment amount on the accounting books, on the electronic data system in the following cases:

+ The tax administration agency has notified the enterprise about the overpaid tax amount to be refunded but the taxpayer refuses to receive the overpaid amount back in writing. copy;

+ The enterprise does not operate at the address registered with the tax authority, has been notified by the tax authority of the overpayment amount on the mass media but after 01 year from the date of notification, the enterprise has not responded in writing to request a refund of the overpaid tax amount to the tax authority;

+ Overpayment is overdue within 10 years from the date of payment to the bank According to state policies, the enterprise does not offset tax obligations and does not refund taxes.

– In case an enterprise not operating at the business registration address has overpaid corporate income tax and outstanding tax, late payment interest, and fines, the tax administration agency will offset the overpaid tax amount with the outstanding tax amount, late payment interest, and fines.