Factory rental costs that do not meet the conditions for leasing are not included in deductible expenses when calculating corporate income tax

On April 16^th, 2025, the Tax Department issued Official Letter No. 634/CT-CS, accordingly:

In case the Company leases a factory for production and business operations but the lessor does not meet the conditions for leasing, according to the regulations of Article 4 of Circular No. 96/2015/TT-BTC dated June 22^nd, 2015 of the Ministry of Finance (amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC), the factory rental cost or the depreciation cost of fixed assets being the factory (if this asset is depreciated) do not have sufficient basis to be considered deductible expenses when determining taxable income of the corporate income tax of the Company.