– Pursuant to Clause 1, Article 90 of the Labor Code No. 45/2019/QH14 dated November 20, 2019 of the National Assembly providing for salaries:
“Article 90. Salaries
1. A salary is an amount the employer pays the employee under an agreement for a work performed by the latter, including the salary according to the job or title, salary allowances and other supplements.
– Pursuant to Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance stipulating taxable incomes from salaries and remunerations:
“2. Incomes from salaries and remunerations
Incomes from salaries and remunerations are incomes paid to employees from employers, including:
a) Salaries, remunerations, and the other amounts paid as salaries or remunerations in cash or not in cash.
b) Allowances and benefits, except for:
– Pursuant to Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC (amended and supplemented in Clause 2, Article 6 of Circular No. 119/2014/TT-BTC and Article 1 of Circular No. 151/2014/TT-BTC) stipulating expenses that are not deductible when determining taxable income:
“Article 6. Deductible and non-deductible expenses when determining taxable income
1. Except for the non-deductible expenses prescribed in Clause 2 of this Article, every expense is deductible if all of these following conditions are satisfied:
a) The actual expense incurred is related to the enterprise’s business operation.
b) There are sufficient and valid invoices and proof for the expense under the regulations of the law.
2. The expenses below are not deductible when calculating taxable income:
2.1 Expenses that do not meet all of the conditions in Clause 1 of this Article.
2.6 Expenditures on wages and bonus for employees in one of the following cases:
d) Salaries and remunerations of the owner of a private company, a single-member limited liability company (owned by an individual); wages of the founders, members of the Board of members or the Executive Board who do not directly participate in business administration.”
Based on the above provisions, in principle:
In case the enterprise is a single-member limited liability company owned by an individual, which incurs costs of salaries, remunerations, and house rent payments and other services related to the company owner, then: