Is vtv5 trực tiếp bóng đá hôm nay director's salary a deductible expense when calculating corporate income tax in Vietnam
What doesdeductible expense mean?
"deductible expense" or "reasonable expense" is a term commonly used in businesses and in vtv5 trực tiếp bóng đá hôm nay field of accounting, referring to costs related to business operations that can be deducted when determining vtv5 trực tiếp bóng đá hôm nay taxable income for corporate income tax. However, currently, vtv5 trực tiếp bóng đá hôm nay law in general, and tax law in particular, do not provide an official definition of this concept.
Nevertheless, Clause 1, Article 6 ofCircular 78/2014/TT-BTC(amended by Article 4 ofCircular 96/2015/TT-BTC) stipulates that a deductible expense, in corporate income tax calculation, is a cost that meets vtv5 trực tiếp bóng đá hôm nay following conditions to be deductible:
- vtv5 trực tiếp bóng đá hôm nay cost actually arises and is related to vtv5 trực tiếp bóng đá hôm nay business operations of vtv5 trực tiếp bóng đá hôm nay enterprise.
- vtv5 trực tiếp bóng đá hôm nay cost is accompanied by legitimate invoices and documents as prescribed by law.
- For costs with goods and service purchase invoices each transaction valued at 20 million VND or more (inclusive of VAT), payment must be made by non-cash means.
Is vtv5 trực tiếp bóng đá hôm nay director's salary a deductible expense when calculating corporate income tax in Vietnam?(Image from vtv5 trực tiếp bóng đá hôm nay Internet)
Is vtv5 trực tiếp bóng đá hôm nay director's salary a deductible expensewhen calculating corporate income tax in Vietnam?
Regarding deductible salary expenses for corporate income tax, as stipulated in Article 6 ofCircular 78/2014/TT-BTC(amended by Article 4 ofCircular 96/2015/TT-BTCand Clause 2, Article 3 ofCircular 25/2018/TT-BTC), vtv5 trực tiếp bóng đá hôm nay regulations are as follows:
Deductible and non-deductibleexpenses for Taxable Income Determination
- Except for vtv5 trực tiếp bóng đá hôm nay non-deductible expenses stated in Clause 2 of this Article, enterprises are allowed to deduct all expenses if they meet vtv5 trực tiếp bóng đá hôm nay following conditions:
a) vtv5 trực tiếp bóng đá hôm nay expense actually arises and is related to vtv5 trực tiếp bóng đá hôm nay business operations of vtv5 trực tiếp bóng đá hôm nay enterprise.
b) vtv5 trực tiếp bóng đá hôm nay expense is accompanied by legitimate invoices and documents as prescribed by law.
c) For costs with goods and service purchase invoices each transaction valued at 20 million VND or more (inclusive of VAT), payment must be made by non-cash means.
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- Non-deductible expenses for taxable income determination include:
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2.6. Salaries, wages, bonuses paid to employees in vtv5 trực tiếp bóng đá hôm nay following cases:
a) Salaries, wages, bonuses, and other payments to employees vtv5 trực tiếp bóng đá hôm nay enterprise has accounted for in production and business costs for vtv5 trực tiếp bóng đá hôm nay period but have not actually been paid or lack payment documents as prescribed by law.
b) Salaries and bonuses for employees not specifically recorded for eligibility and levels in documents such as labor contracts, collective labor agreements, financial regulations of vtv5 trực tiếp bóng đá hôm nay company, corporation, or group, reward regulations as determined by vtv5 trực tiếp bóng đá hôm nay Chairman of vtv5 trực tiếp bóng đá hôm nay Board, CEO, or Director as per vtv5 trực tiếp bóng đá hôm nay company's financial regulations.
c) Salaries, wages, and allowances payable to employees but not yet paid by vtv5 trực tiếp bóng đá hôm nay tax finalization deadline, except where vtv5 trực tiếp bóng đá hôm nay enterprise has set aside a reserve fund for adding to vtv5 trực tiếp bóng đá hôm nay next year's wage fund. vtv5 trực tiếp bóng đá hôm nay annual reserve level is decided by vtv5 trực tiếp bóng đá hôm nay enterprise but must not exceed 17% of actual wage fund executed.
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d) Salaries and wages of private enterprise owners, owners of single-member limited liability companies (owned by an individual); remuneration paid to founders, members of vtv5 trực tiếp bóng đá hôm nay board of members, board of directors who do not directly participate in vtv5 trực tiếp bóng đá hôm nay management of production or business operations.
In principle, vtv5 trực tiếp bóng đá hôm nay director’s salary can be considered a deductible expense deductible when determining taxable income for corporate income tax purposes, provided it meets vtv5 trực tiếp bóng đá hôm nay stipulated conditions. However, there are certain instances where vtv5 trực tiếp bóng đá hôm nay director's salary will not be deductible, including:
- Salary accounted for in expenses but not actually paid or lacks valid payment documentation.
- Salary not specifically recorded for eligibility and amounts in documents such as labor contracts, company financial regulations, or company reward systems.
- Salary not actually paid by vtv5 trực tiếp bóng đá hôm nay tax finalization deadline, except in cases where vtv5 trực tiếp bóng đá hôm nay enterprise has established a reserve fund for vtv5 trực tiếp bóng đá hôm nay next year's wage fund. vtv5 trực tiếp bóng đá hôm nay reserve level is decided by vtv5 trực tiếp bóng đá hôm nay enterprise but must not exceed 17% of vtv5 trực tiếp bóng đá hôm nay actual wage fund executed.
- Salary of a director who is vtv5 trực tiếp bóng đá hôm nay owner of a private enterprise, vtv5 trực tiếp bóng đá hôm nay owner of a single-member limited liability company (owned by an individual), or a director who is a founder, member of vtv5 trực tiếp bóng đá hôm nay board of members, board of directors who do not directly participate in managing business operations.
How to calculatecorporate income tax in Vietnam?
Clause 1, Article 3 ofCircular 78/2014/TT-BTC(amended by Article 4 ofCircular 96/2015/TT-BTC) stipulates that vtv5 trực tiếp bóng đá hôm nay corporate income tax payable in a tax period is equal to vtv5 trực tiếp bóng đá hôm nay taxable income minus vtv5 trực tiếp bóng đá hôm nay deduction for vtv5 trực tiếp bóng đá hôm nay science and technology fund (if any) multiplied by vtv5 trực tiếp bóng đá hôm nay corporate income tax rate.
vtv5 trực tiếp bóng đá hôm nay corporate income tax payable is determined by vtv5 trực tiếp bóng đá hôm nay following formula:
Corporate Income Tax Payable = (Taxable Income - Deduction for Science & Technology Fund (if any)) x Corporate Income Tax Rate
