When determining income subject to CIT in Vietnam, what expenses for salary, remuneration, bóng đá hôm nay trực tiếp bonus paid to employees will not be deductible?

When determining income subject to CIT in Vietnam, whatexpenses for salary, remuneration, bóng đá hôm nay trực tiếp bonus paid to employees will not be deductible?

According to Point 2.6, Clause 2, Article 6 ofCircular No. 78/2014/TT-BTC, amended bóng đá hôm nay trực tiếp supplemented by Article 4 ofCircular No. 96/2015/TT-BTCbóng đá hôm nay trực tiếp further amended by Clause 2, Article 3 ofCircular 25/2018/TT-BTC, expenses for salary, remuneration, bóng đá hôm nay trực tiếp bonus paid to employees in the following cases will not be deductible when calculating taxable corporate income, specifically:

- Expenses for salaries, wages, bóng đá hôm nay trực tiếp other payables to employees that the company has recorded into business production costs during the period but did not actually pay or do not have payment documents as prescribed by law.

- Salary bóng đá hôm nay trực tiếp bonus payments to employees that are not specifically stated in the following documents: Labor contracts; collective labor agreements; financial regulations of the Company, Corporation, or Group; Payment regulations stipulated by the Chairman of the Board of Directors, General Director, or Director following the company’s financial regulations.

+ In the case where the company signs a labor contract with a foreign employee, which includes tuition fees for their children studying in Vietnam from kindergarten to high school paid by the company as part of salary bóng đá hôm nay trực tiếp wage bóng đá hôm nay trực tiếp with complete invoices bóng đá hôm nay trực tiếp documents, these can be included as deductible expenses when determining income subject to CIT.

+ In the case the company signs a labor contract with an employee, which includes housing expenses paid by the company as part of the salary bóng đá hôm nay trực tiếp wage, bóng đá hôm nay trực tiếp with complete invoices bóng đá hôm nay trực tiếp documents, these can be included as deductible expenses when determining income subject to CIT.

+ In the case a Vietnamese company signs a contract with a foreign company stipulating that the Vietnamese company must cover accommodation costs for foreign experts during their work period in Vietnam, the rent paid by the Vietnamese company for the foreign experts can be included as deductible expenses when determining income subject to CIT.

- Expenses for salaries, wages, bóng đá hôm nay trực tiếp allowances payable to employees but not paid by the end of the annual tax return filing deadline unless the company has set up a reserve fund to supplement the payroll fund for the following year. The annual reserve is decided by the company but cannot exceed 17% of the actual payroll fund.

The actual payroll fund is the total amount of salary actually paid up to the last day of the final tax return filing deadline (excluding the payroll reserve from the previous year used in the tax settlement year).

The salary reserve setup must ensure that the company does not incur losses after the reserve; if losses occur, no reserve is allowed up to 17%.

If the company set up a salary reserve in the previous year but within six months from the end of the financial year has not used or only partially used the salary reserve, the company must reduce the next year's expenses.

Example: When filing the 2014 tax return, Company A set up a salary reserve of VND 10 billion. By June 30, 2015 (for calendar year taxpayers), Company A had only paid VND 7 billion from the 2014 salary reserve, then Company A must reduce the 2015 salary expenses by VND 3 billion (10 billion – 7 billion). If Company A needs to set up a reserve in 2015, it will continue to set up the salary reserve according to regulations.

- Salaries bóng đá hôm nay trực tiếp wages of private enterprise owners, single-member limited liability company owners (owned by an individual); remuneration for founders, members of the Members' Council, bóng đá hôm nay trực tiếp Board of Directors who do not directly participate in business operations.

When determining income subject to CIT in Vietnam, whatexpenses for salary, remuneration, bóng đá hôm nay trực tiếp bonus paid to employees will not be deductible?(Image from the Internet)

Will expenses for the purchase of goods bóng đá hôm nay trực tiếp services without invoicesbe deductible when determining income subject to CIT in Vietnam?

Under Point 2.4, Clause 2, Article 6 ofCircular No. 78/2014/TT-BTC, for expenses for the purchase of goods bóng đá hôm nay trực tiếp services without invoices, enterprises may make a list of purchased goods bóng đá hôm nay trực tiếp services according to form No. 01/TNDN enclosed withCircular No. 78/2014/TT-BTC, but they may not make a list attached with payment documents for goods sellers bóng đá hôm nay trực tiếp service providers in the following cases:

- Purchase of agricultural products bóng đá hôm nay trực tiếp aquatic products directly from their producers or catchers;

- Purchase of handicrafts made of jute, rush, bamboo, leaves, rattan, straw, coconut husk, coconut shell or raw materials from agricultural products directly from their manual producers who do not do business;

- Purchase of soil, rock, sand bóng đá hôm nay trực tiếp gravel directly from households bóng đá hôm nay trực tiếp individuals who exploit them;

- Purchase of scraps of people who directly collect them;

- Purchase of articles, assets bóng đá hôm nay trực tiếp services directly from households bóng đá hôm nay trực tiếp individuals that do not do business;

- Purchase of goods bóng đá hôm nay trực tiếp services of business households or individuals (not including the above cases) that have a turnover below the value-added tax-liable turnover level (VND 100 million/year).

Lists of purchased goods bóng đá hôm nay trực tiếp services shall be signed by legal representatives or authorized persons of enterprises, who shall take responsibility before law for the accuracy bóng đá hôm nay trực tiếp truthfulness of these lists.

Enterprises purchasing goods bóng đá hôm nay trực tiếp services allowed for making such lists for inclusion in deductible expenses are not required to have non-cash payment documents.

If the purchase prices of goods bóng đá hôm nay trực tiếp services on a list are higher than the market prices at the time of goods purchase, tax agencies may base themselves on market prices at the time of purchase of goods or services of the same or similar type available on the market to re-determine the prices for re-calculating deductible expenses for determining taxable income.

What are the deductible expenses when determining income subject to CIT in Vietnam?

According to Clause 1, Article 9 ofDecree No. 218/2013/ND-CP, supplemented by Clause 5, Article 1 ofDecree No. 12/2015/ND-CP, except for non-deductible expenses when determining income subject to CIT, enterprises can deduct all expenses if they meet the following conditions:

- Actual expenses incurred related to the company's business activities, including:

+ Expenses for performing national defense bóng đá hôm nay trực tiếp security duties, training, activities of the militia bóng đá hôm nay trực tiếp self-defense forces, bóng đá hôm nay trực tiếp serving other national defense bóng đá hôm nay trực tiếp security tasks as prescribed by law; expenses to support the activities of party organizations, political-social organizations within the enterprise;

+ Expenses for vocational education bóng đá hôm nay trực tiếp training for employees as prescribed by law;

+ Actual expenses for HIV/AIDS prevention in the workplace, including: Training costs for HIV/AIDS prevention personnel, communication activities for HIV/AIDS prevention within the enterprise, cost of consulting, testing for HIV, bóng đá hôm nay trực tiếp support costs for HIV-positive employees.

- Expenses have sufficient invoices bóng đá hôm nay trực tiếp documents as prescribed by law.

For cases of purchasing goods being agricultural, forest, bóng đá hôm nay trực tiếp aquatic products from direct producers; buying handmade products made from jute, rush, bamboo, leaves, rattan, straw, coconut shell, or other agricultural by-products directly from non-commercial craftsmen; purchasing land, stone, sand, gravel from families bóng đá hôm nay trực tiếp individuals who directly mined bóng đá hôm nay trực tiếp sold them; buying scrap from collectors, purchasing used items, assets, or services from non-commercial families bóng đá hôm nay trực tiếp individuals, bóng đá hôm nay trực tiếp services from non-commercial households, they must have payment documents bóng đá hôm nay trực tiếp a List of Purchased Goods bóng đá hôm nay trực tiếp Services signed bóng đá hôm nay trực tiếp certified by the legal representative or authorized person of the business.

- For invoices for purchasing goods or services valued at twenty million VND or more per time, non-cash payment documents are required, except for expenses of the enterprise for tasks such as: national defense bóng đá hôm nay trực tiếp security duties, HIV/AIDS prevention at the workplace, supporting party organizations, political-social organizations within the enterprise; purchasing goods bóng đá hôm nay trực tiếp services that are listed as specified in Point b, Clause 1, Article 9 ofDecree 218/2013/ND-CP.