KEY POINTS REGARDING COMPANY BENEFITS WITH DIRECT EXPENDITURES TOWARD EMPLOYEES

The content of this clause is cross-related to many different regulations. VNC would like to share information about actual inspections at businesses and common approaches of tax officers inspecting, as follows:

* For this amount to be a deductible expense when determining taxable income, the following points should be noted:

– The total amount of welfare expenses must not exceed 01 month’s actual average wage made in the tax year of the business;

– Expenses must have complete supporting documents: Expenditure decision reports, lists of specific expenditures, relevant expense documents.

* Regarding personal income tax, it should be noted that because this expense is specific to each individual, it is necessary to consider this as income subject to personal income tax and therefore to be calculated and declared in full.