Your comprehensive back-office solutions

    • Eurocham
    • Antea
  • English
  • Vietnam


Pursuant to Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance guiding corporate income tax in Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law 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 Circular No. 151/2014/TT-BTC) stipulates:

+ Clause 1, Article 4 stipulates 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.

c) There is proof of non-cash payment for each invoice for purchase of goods/ services of VND 20 million or over (including VAT).

The proof of non-cash payment must comply with regulations of law on VAT.”

+ In Section 2.9, Clause 2, Article 4, expenses that are not deductible when determining taxable income include:

“2.9. Expenditure on provision of leave travel allowance for employees on leave against regulations of the Labor Code.

Allowance for employees on business trips, allowance for travelling and accommodation of employees on business trips will be deductible expenses when calculating taxable income if they have adequate invoices. If the enterprise pays for the traveling, accommodation, and allowance of employees on business trips in accordance with its financial regulations or rules, such amounts will be deductible.”

Based on the above regulations, payments for employees on business trips in the Company:

+ In case the Company has issued financial regulations or internal regulations on business trips allowances and payments for travelling, accommodation, allowances, the payment for business trips will be included in deductible expenses when determining income subject to corporate income tax in accordance with the set level according to the Company’s financial regulations or internal regulations.

+ In case the Company does not issue financial regulations or internal regulations on business trips allowances, travel expenses and accommodation rentals of employees will be deductible expenses if they have adequate invoices when determining income subject to corporate income tax.