A key development in the new Corporate Income Tax (CIT) Act is the concept of “deemed distribution of profit,” which includes non-business expenses. These expenses have a new item: so-called representation and staff sustainability expenses exceeding 5% of the company’s total gross pay for the past financial year on which personal income tax and mandatory national social insurance contributions have been paid to the government. This article explores whether input VAT on representation and staff sustainability expenses is fully recoverable.