1. Corporate Income Tax (“CIT”)
(i). Payments made for non-compulsory health insurance are tax deductible effective 1 January 2014
Pursuant to the guidance provided in Official Letter No. 1694/BTC/CST dated 3 February 2015 issued by the Ministry of Finance, where employers purchase non compulsory insurance policies for employees including personal accident insurance, medical insurance, and health care insurance in accordance with the Law on Insurance Business, such payments are considered staff welfare expenses and are deductible for CIT purposes, capped at one month’s average salary.
(ii). Foreign investors are not allowed to remit profits abroad on a quarterly basis
According to Item 1, Article 4 of Circular 186/2010/TT-BTC, foreign investors are permitted to remit profits abroad annually subsequent to the end of the fiscal year, but only after audited financial statements and the CIT finalization return are submitted to the relevant authorities.
The General Department of Taxation issued Official Letter No. 1084/TCT-DNL dated 30 March 2015 reaffirming that foreign investors are not allowed to remit profits abroad on a quarterly basis.