According to Clause 1, Article 6 of Circular No. 78/2014/TT-BTC, which was amended in Circular No. 96/2015/TT-BTC dated June 22, 2015 guiding the implementation of the Law on Corporate Income Tax (CIT) stipulates: “Article 4. Amendment and supplement to Article 6 of Circular No. 78/2014/TT-BTC (amended and supplemented in Clause 2, Article 6 of Circular No. 19/2014/TT-BTC and Article 1 Circular No. 151/2014/TT-BTC) as follows:
“Article 6. Expenses that are deductible and non-deductible when determining taxable income
1. Except for non-deductible expenses mentioned in Clause 2 of this Article, enterprises may deduct all expenses if they fully satisfy the following conditions:
a) Actual expenses incurred in connection with production and business activities of the enterprise.
b) Expenses with sufficient legal invoices and documents as prescribed by law.
c) Expenses, if there is an invoice for buying goods and services each time with a value of 20 million VND or more (VAT included) upon payment must have a non-cash payment voucher.
Non-cash payment vouchers comply with the provisions of legal documents on VAT”.
Assuming that the enterprise has a customer conference, it shall include these expenses: organizer, presenter, singer, table and food, etc. in the form of a package subscription.
Pursuant to the above provisions, the above-mentioned expenses if they satisfy the conditions specified in Clause 1, Article 6 of Circular No. 78/2014/TT-BTC as amended in Article 4 of Circular No. 96/2015/ TT-BTC: serving the production and business activities of the enterprise; have sufficient legal invoices and documents and have non-cash payment vouchers for goods and service purchase invoices valued at 20 million VND or more (VAT included), they shall be accounted as deductible expenses when determining taxable income.
Additional points of note: