DETERMINE ALLOWABLE EXPENSES FOR ENTERPRISE TAXABLE INCOME
“Allowable expenses to be deducted when determining enterprise taxable income” are the concerns of most currently business owners. Hao & Associate Law Office would like to provide some knowledge in this field as follows:
* Legal grounds
– Law on Enterprise Income Tax 2008
– Law on amending and supplementing the Law on Enterprise Income Tax 2013
– Circular 96/2015 / TT-BTC guiding Enterprise income tax
* Specified contents
In Article 4, Circular 96/2015 / TT-BTC guiding Enterprise income tax shown following conditions:
– Actual expenses incurred related to production and business activities of the enterprise.
– Expenditures are enough legal invoices and receipts as prescribed by law.
– Expenses for invoices for purchase of goods and / or services, each with a value of VND 20 million or more (inclusive of VAT), must be accompanied by non-cash payment receipts.
Some specific expenses to be deducted when calculating enterprise income tax:
– Depreciation costs serving the laborers in enterprises such as: mid-shift rest place, mid-shift meals, clothes changing rooms, toilets, rooms or clinics for medical examination and treatment. Training, vocational training, library, kindergarten, sports area and equipment, furniture qualified as fixed assets installed in the aforementioned works; Clean water tank, garage; Pick-up workers, laborers directly housing; The cost of building material foundations, the cost of procurement of machines and equipment being fixed assets used for organizing vocational training activities.
– Depreciation costs of works on land such as offices, workshops, shops for production and business activities of enterprises which response to following conditions: a land lease contract, a land use invoice, a work payment bill, a contract, a contract liquidation, and a final account of the project; to be monitored, managed and accounted according to regulations.
– Expenses for laborers’s costume shall not exceed 5,000,000 VND.
– Payment for individual leasing property who have lease contracts, property rental payment records and tax payment receipts on behalf of individuals (if the asset-leasing contracts are agreed upon, the enterprises shall pay taxes on behalf of them).
– The cost of electricity and water paying to the supplier or the owner of the lease with invoices, receipts and lease contract.
– Laborers’s mission costs which have invoices and receipts as appropriate; An enterprise shall issue a decision or a written document on the sending of laborers to a bussiness; The company’s financial regulations or internal regulations allow employees to pay for travel allowances and purchase air tickets with their bank cards held by their cardholders an recalculate to employees.
– Some other specific expenses are also considered as allowable expenses such as:
+ Expenditures for HIV / AIDS prevention.
+ Expenditures for education of national defense and security
+ Expenditures to support the Party organization, socio-political organizations in enterprises
+ Expenses for professional education and vocational training for laborers: expenses for lecturers, study materials, equipment used for professional education, practice materials, expenses other support for learners; Training costs of enterprises for employees are recruited into the enterprise.
+ Expenditures on welfare, grants, treatment support, learning supplementation, family support for workers affected by natural disasters, epidemics, accidents, sickness …