Expenses for holidays on March 8, June 1, birthdays, childbirth, mid-autumn, lucky money for employees.

- Official Dispatch 158/TCT - CS dated 12/1/2017.

- Official Dispatch No. 5435/TCT-CS dated November 27, 2017 of the General Department of Taxation on CIT policy.

- Official Dispatch No. 2489/CT-TTHT dated March 24, 2016 of the Tax Department of HCMC.

Pursuant to Article 3 of the 2008 Law on Corporate Income Tax on taxable incomes of enterprises Article 4 of Circular 96/2015/TT-BTC, and Section 2.31 of Circular 151/2014/TT-BTC regulates expenses not corresponding to taxable revenue, except for the following expenses:

“Expenses paid directly to employees have a welfare nature such as: expenses for weddings and funerals of  of themselves and the employee's family; vacation expenses, expense on supporting treatment; expense on additional support for learning knowledge at training institutions; expenses to support the families of employees affected by natural disasters, enemy sabotage, accidents, illness; expense on rewarding children of employees with good academic achievements; expense on transportation costs on holidays and Tet for employees, and other welfare-related expenses.”


Foreign language training fees for employees.

- Official Dispatch No. 7546/CT-TTHT dated August 10, 2017 of the Tax Department of HCMC.


Expenses on buying reference books for employees to serve the production and business activities of enterprises.

- Official Dispatch No. 2759/TCT-CS dated June 23, 2017 of the General Department of Taxation.


Expense on transportation costs on holidays and Tet for employees.

- Official Dispatch No. 2425/CT-TTHT dated 23/3/2016 of Tax Department of HCMC.


If the employer already paid meal allowance paid into salary, the expense on buying extra-food in collective activities should be clearly stated for which purpose: break time of regular meetings, training sessions of the enterprise.

However, if the above purpose is not clarified, it will not be accepted.

- Official Dispatch No. 6627/CT-TTHT dated July 13, 2016 of the Tax Department of HCMC.


Expenses for transportation for attending weddings and funerals of employees.

- Official Dispatch No. 43626/CT-HTr dated 3/7/2015 of the Tax Department of HCMC.


The total amount of welfare expenses mentioned above must not exceed 01 month's actual average salary in the tax year of the enterprise.  The determination of the actual average monthly salary in the tax year of the enterprise is determined by the salary fund in the year divided by 12 months. The salary fund implemented during the year is specified in Item c, Point 2.5, Clause 2, Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance.

  • The salary fund implemented during the year is the total actually paid salary of that settlement year up to the deadline for submission of the final settlement dossier as prescribed (excluding the amount set aside for the salary reserve fund of the previous year spent in the tax finalization year).

  • Other expenses of specific nature, suitable for each industry and field according to the guiding documents of the Ministry of Finance.

Pursuant to the above provisions, enterprises shall include in deductible expenses when determining taxable income for welfare expenditures directly paid to employees specified in Clause 4, Article 1 of Decree No. 91/2014/ND-CP, thus, vacation expenses are included in deductible expenses and the total direct expenditure for welfare benefits for employees does not exceed 01 month's actual average salary in the tax year of the enterprise. Applicable for the 2014 CIT period onwards. These expenses must be fully invoiced and documented as prescribed by law.






Salary costs of employee subject to participate in compulsory insurance but do not submit.

- Dispatch no 3884/TCT-CS dated 18/11/2013 of of Tax department on CIT policy.

According to this dispatch, as long as company has all the following documents for the salary cost, it will be accepted, no proof of payment of social insurance is required:

  1. Salary payment receipt;

  2. Salary spreadsheet;

  3. Labor contract;

  4. PIT submission receipt.

Therefore, in case the enterprise violates regulations on social insurance (not paying social insurance, for example), salary costs are still accepted.


Loss of deposit due to breach of contract.

- Dispatch no 3603/CT-TTHT dated 24/4/2017 of HCMC Tax department.

In case the Company signs a contract to rent the premises, has a deposit for the reservation, but for some reasons, the contract cannot be proceeded and the deposit is lost, the lost deposit will be treated as the reasonable cost.

Required accounting records: premises lease contract (clearly stipulating the loss of deposit if the contract is not performed), payment vouchers.

- Dispatch no 6627/CT-TTHT dated 13/7/2016 of HCMC Tax department on deductible expenses.

In case the Company rents an office, but due to the termination of the lease contract ahead of time, the rental deposit cannot be returned, documents such as rental contract (which stipulates that the early termination of the lease contract will not be refunded the deposit), payment documents... is the basis for the Company to calculate deductible expenses when determining CIT.


Gifts for Clients on holidays.

- Dispatch no 12129/CT-TTHT dated 9/12/2016 of HCMC Tax department.

In case the Company purchases goods (wine, tea, cakes, candies) to give to customers on holidays and New Year in order to show gratitude, maintain and develop relationships with customers, this expense is considered related to production and business activities.

Accordingly, if there are sufficient invoices and non-cash payment documents (for invoices valued from 20 million VND and over), they will be deducted when calculating CIT.

It should be noted that when giving goods to customers, the Company still has to issue invoices and calculate VAT as sold goods. But revenue is not recognized for CIT calculation.


Interest arising from late payment.

- Dispatch no 464/CT-TTHT dated 16/1/2017 of HCMC Tax department.

In case the Company incurs interest expenses due to late payment as agreed in the goods sale and purchase contract, this interest expense shall be accounted into reasonable expenses.


Input invoices are not made at the right time.

- Dispatch no 2731/TCT-CS dated 20/6/2016 of Tax Department.

- To declare and deduct input VAT according to Dispatch 2104/TCT-KK dated 06/06/2014.

In case the company buys raw materials but the seller issues an invoice later than prescribed (delivered last month but invoiced next month), If other conditions are still met, it will still be included in reasonable expenses, and may declare and deduct input VAT.

- Document required:

  • Sale contract

  • Goods delivery record (delivery month)

  • Invoice

  • Payment vouchers in accordance with regulations.

For the seller, they will be administratively sanctioned for the act of making invoices at the wrong time.


Hire individuals to transport by tricycle, motorbike (motorbike taxi), garment processing.

- Dispatch no 22684/CT-HTr dated 22/4/2016 of Hanoi Tax department.

- Dispatch no 2019/CT-TTHT dated 9/3/2015 of HCMC Tax department.

In case the Company hires individuals to provide transportation services by motorbike, garment processing with a turnover of less than 100 million VND/year.

Based on the contract, payment vouchers, tax withholding documents, the Company makes a list of 01/TNDN to account in reasonable expenses.

If the total income payment is from 02 million VND/time or more, PIT must be withheld at the rate of 10%, except for the case which the individual has made a commitment to low income, the deduction is exempt.


Payment by personal credit card for bills of 20 million VND or greater.

- Dispatch no 5465/TCT-KK dated 25/11/2016 of Tax department on VAT deduction for personal credit card payments.

In case the Company authorizes an individual who is an employee of the Company to use a personal credit card to pay for goods and services to the seller, then the Company will pay the individual through the form of bank transfer from the Company's account registered with the tax authority to the individual's account.

If this form of payment is available at:

  • Specific regulations in the financial management regulations of the Company

  • Or Decision on the authorization of the Company for individuals

  • At the same time, the above expenses have invoices for purchase of goods and services bearing the name and tax code of the Company; records related to the authorization of the business for the individual to pay with the seller and pay back to the business;

  • There is proof of money transfer from the individual's credit card account to the merchant.

  • There is a proof of money transfer from the Company's bank account to the individual

  • The above form of payment is considered to satisfy the conditions of non-cash payment documents, serving as a basis for declaring and deducting input value-added tax and being included in deductible expenses when calculating CIT.

The company is responsible for making and monitoring the list of personal credit card accounts of authorized employees to pay for goods and services in the above form and provide it to the competent authority when needed.


About the cost of office renovation and repair.

- Dispatch no 38267/CT-TTHT dated 7/6/2017 of Hanoi Tax department on tax policy.

In case the enterprise incurs expenses to renovate and repair the office (rented office) which is clearly stated in the lease contract as the lessee is responsible for the renovation and repair during the lease period, the renovation cost shall be accounted into expenses or allocated into expenses, but the maximum period is not more than 03 years.


According to Article 6 of Circular No. 78/2014/TT-BTC, Article 4 of Circular 96/2015/TT-BTC of the Ministry of Finance, stipulating expenses that are deductible when determining specific CIT:
Except for non-deductible expenses mentioned in Clause 2, Article 4 of Circular 96/2015/TT-BTC, enterprises may deduct all expenses if they fully satisfy the following conditions:

  1. Actual expenses incurred in connection with production and business activities of the enterprise.

  2. Expenses with sufficient legal invoices and documents as prescribed by law.

  3. Expenses if there is an invoice for purchase of goods and services each time with a value of VND 20 million or more (price includes VAT) when paying, there must be a non-cash payment voucher: 

If each purchase of goods and services is valued at > 20 million VND on the invoice but has not been paid by the time of expense recognition, it shall be included in deductible expenses when determining taxable income. But when paying without paying through the bank, you must declare the adjustment to reduce the cost
+ For goods and service purchase invoices that have been paid in cash, arising before the effective date of Circular No. 78/2014/TT-BTC, they are not required to be adjusted according to the provisions of this Point.

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