The Standing Committee of the National Assembly has
approved in principle the proposal to remove the cap on the
deductibility of Advertising and Promotion (A&P) expenses for
Corporate income tax (CIT) purposes.Regular readers may recall
the recent issuance of Resolution 63 by the Government which included a
proposal to limit the application of the A&P cap to advertising
expenses only. Since issuing Resolution 63 there has been continued
debate and discussion, including the proposal to abolish the cap
completely. This latter proposal has been approved in principle by the
Standing Committee. The National Assembly will meet in the next few
weeks to make a final decision.

Resolution 63 contained a number
of other tax matters that require the approval of the National Assembly.
The Standing Committee has considered and approved most of the
proposals which will now also be presented to the National Assembly for a
final decision.

The changes, if approved by the National Assembly, are expected to apply from 1 January 2015.

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