This circular of the Ministry of Finance stipulates the rate of advertising, marketing expenses, and other costs when determining taxable income for corporate income tax purposes. The maximum level for these expense items shall not exceed 7% of total reasonable costs.
适用范围
Provincial Tax Departments; Enterprises
要点
- Enterprises → are allowed to include advertising, marketing expenses, and other costs in their expenses if they have valid supporting documents → but such inclusion must not exceed 7% of total reasonable costs (This applies to the final settlement of corporate income tax for the fiscal year 2003)
- Provincial Tax Departments → shall determine the level of advertising, marketing expenses, and other costs when settling corporate income tax for the year 2003 for enterprises in accordance with this guidance
🌐 本文件的社会影响
- Enterprises benefit from being able to include advertising, marketing expenses, and other costs as long as they do not exceed the prescribed limit.
- Provincial Tax Departments must strictly follow these guidelines to ensure fairness in determining corporate income tax.
❓ 常见问题
Can enterprises include advertising costs in reasonable expenses?
Yes, but the maximum level shall not exceed 7% of total reasonable costs as stipulated in Circular No. 13/2001/TT-BTC and Circular No. 18/2002/TT-BTC.
What are the responsibilities of the Tax Departments?
The Tax Departments must determine the level of advertising, marketing expenses, and other costs when settling corporate income tax for the year 2003 for enterprises in accordance with the guidance provided by the Ministry of Finance.
When does this document apply?
This applies to the final settlement of corporate income tax for the fiscal year 2003.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 7664/TC-TCT DATE JULY 12, 2004
REGARDING THE APPLICATION OF PERCENTAGE RATES FOR ADVERTISING COSTS, MARKETING EXPENSES AND OTHER EXPENSES IN DETERMINING TAXABLE INCOME FOR ENTERPRISE INCOME TAX
RESPECTED: DIRECTORATES OF TAXES OF PROVINCES AND MUNICIPALITIES UNDER THE CENTRAL GOVERNMENT
RECENTLY, THE MINISTRY OF FINANCE HAS RECEIVED LETTERS FROM SOME ENTERPRISES REQUESTING TO INCREASE THE PERCENTAGE RATES FOR ADVERTISING COSTS, MARKETING EXPENSES, PROMOTIONAL EXPENSES, ENTERTAINMENT EXPENSES, CEREMONIAL EXPENSES, TRANSACTION EXPENSES, FOREIGN RELATIONS EXPENSES, MEETING EXPENSES AND OTHER TYPES OF EXPENSES FROM 5% TO 7%. THE MINISTRY OF FINANCE GUIDES AS FOLLOWS:
BASED ON THE PROVISIONS OF CIRCULAR NUMBER 13/2001/TT-BTC DATE MARCH 8, 2001 AND CIRCULAR NUMBER 18/2002/TT-BTC DATE FEBRUARY 20, 2002 OF THE MINISTRY OF FINANCE, ADVERTISING COSTS, MARKETING EXPENSES, PROMOTIONAL EXPENSES, ENTERTAINMENT EXPENSES, CEREMONIAL EXPENSES, TRANSACTION EXPENSES, FOREIGN RELATIONS EXPENSES, MEETING EXPENSES AND OTHER TYPES OF EXPENSES SHALL NOT EXCEED THE LIMITATION SET AT 7% OF TOTAL REASONABLE COSTS AS PROVIDED IN THESE CIRCULARS. FOR ENTERPRISE INCOME TAX FINALIZATION FOR THE FISCAL YEAR 2003, IF THERE ARE LEGITIMATE DOCUMENTS, SUCH ADVERTISING AND MARKETING EXPENSES AND OTHER EXPENSES SHALL BE INCLUDED IN COSTS BUT NOT TO EXCEED A MAXIMUM OF 7% OF TOTAL REASONABLE COSTS AS STATED ABOVE.
DIRECTORATES OF TAXES OF PROVINCES AND MUNICIPALITIES UNDER THE CENTRAL GOVERNMENT SHALL BASE ON THE GUIDANCE PROVIDED ABOVE TO DETERMINE ADVERTISING, MARKETING EXPENSES AND OTHER EXPENSES WHEN FINALIZING ENTERPRISE INCOME TAX FOR 2003 FOR ENTERPRISES.
IF THERE ARE ANY ISSUES ENCOUNTERED DURING IMPLEMENTATION, PLEASE REPORT TO THE MINISTRY OF FINANCE FOR PROMPT GUIDANCE AND RESOLUTION.
During implementation, if any difficulties arise, the tax bureaus are requested to report to the Ministry of Finance for timely guidance and resolution
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