On December 9, 2016, the SAT released Announcement  No. 80 to clarify two enterprise income tax (“EIT”) matters applicable to EIT annual declarations starting in 2016:
1. Personal accident insurance premiums for employees using public transport for business travel are deductible when calculating enterprises’ taxable income.
Before this announcement was issued, commercial insurance premiums that enterprises paid for employees were not deductible, except personal safety insurance premiums paid for employees with special work conditions.
2. Turnover from the transfer of assets will be considered at the fair value of the transferred assets in the following situations:
- marketing and sales;
- socializing and entertainment;
- employee awards or benefits;
- in-kind dividend distribution;
- external donation; and
- any other purpose causing a transfer.
Date of issue: December 9, 2016. Effective date: January 1, 2017