1. Fixed asset depreciation costs

– For normal fixed assets, the time and depreciation method for each type of asset will be controlled according to the provisions of Circular 45/2013/TT-BTC.
Enterprises operating with high economic efficiency are allowed to apply accelerated depreciation, but not more than twice the depreciation rate determined by the straight-line method to quickly innovate technology. When performing accelerated depreciation, businesses must ensure profitable business.
– For cars with 9 seats or less (except: cars used for passenger transport business, tourism business, hotel business; cars used for modeling and test driving for car business). Depreciation is only included in deductible expenses corresponding to the value of 1.6 billion VND or less.

2. Expenses for raw materials, materials, fuel, energy, and goods

Expenditures exceeding the consumption level of raw materials, materials, and fuel for which the State has issued norms will not be included in deductible expenses when determining corporate income tax.

3. Expenditure on salaries and wages

Expenditure on salaries, wages and allowances payable to employees but the application deadline has expired tax settlement The actual unspent year will not be included in deductible expenses, unless the enterprise sets up a reserve fund to supplement the salary fund of the immediately following year. The annual reserve level is decided by the enterprise but must not exceed 17% of the implemented salary fund.
The establishment of salary provisions must ensure that after the establishment, the enterprise does not suffer losses. If the enterprise suffers losses, it cannot deduct the full amount of 17%.

4. Spending money on clothing for workers

The monetary cost of clothing for employees that does not exceed 05 (five) million VND/person/year will be included in deductible expenses when determining corporate income tax.

5. Contribute to the voluntary pension fund, buy voluntary pension insurance, life insurance and other types of insurance for employees

Expenditures to contribute to the voluntary pension fund, purchase voluntary pension insurance, and life insurance for employees not exceeding 03 million VND/month/person will be included in deductible expenses when determined. Corporate income tax.
The excess amount prescribed by law on social insurance and health insurance is used to contribute to social security funds (social insurance, compulsory supplementary pension insurance), and insurance funds. Health care and unemployment insurance funds for employees will not be included in deductible expenses when determining corporate income tax.
Note: Payments to voluntary pension funds, social security funds, purchase of voluntary pension insurance, and life insurance for employees are included in deductible expenses in addition to not exceeding the limit. The regulations must also specify the conditions and benefit levels in one of the following documents: Labor contract; Collective labor agreement; Financial regulations of Companies, Corporations, and Groups; Bonus regulations are prescribed by the Chairman of the Board of Directors, General Director, and Director according to the financial regulations of the Company and Corporation.

6. Loan interest payment costs

For loans from entities that are not credit institutions or economic organizations, the interest rate paid must not exceed 150%, the basic interest rate announced by the State Bank of Vietnam at the time of the loan.

7. Welfare expenses paid directly to employees

The total amount of direct welfare expenditures for employees must not exceed 01 month's average salary actually made in the enterprise's tax year.
Above are the 7 most common expenses that accountants always have to handle while working at businesses. Control levels are clearly specified so that accountants can reduce errors in the working process tax settlement CIT.

If you have any questions, please contact us immediately AACS for advice and support.

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