On September 15, 2022, Ha Nam Tax Department issued Official Letter No. 1257/CTHNA-TTHT, thereby:
In case the Company imports a shipment of raw materials from abroad and hires a carrier to transport from the seller’s port to the Company’s warehouse, but there is a collision during the transportation, resulting in the material being damaged, then:
Regarding CIT incentives: in case the Company generates income from compensation paid by the carrier, this income is determined to be other income of the enterprise. If the Company is entitled CIT incentives because it meets the conditions for investment incentives area under the Investment Certificate, the above-mentioned income is not entitled to CIT incentives.
Regarding deductible costs: for expenses related to the value of materials lost by the carrier and the carrier who has made compensation, the above-mentioned expenses are not included in the deductible expenses when determining CIT taxable income.
For expenses related to the destruction of materials that have been damaged during transportation, these expenses shall not be included in the deductible expenses when determining CIT income if they do not meet the provisions of Article 6 of Circular 78/2014/TT-BTC, which are amended, supplemented by Article 4, Circular 96/2015/TT-BTC.
