The above – mentioned limit for making cost accounting for loan interest costs is applied to total loan interest costs arising within a specific tax period, regardless of the loan interest costs arisen from related parties or independent parties.
According to the Department of Taxation of Ha Noi city’s opinions, the limit for making cost accounting for loan interest costs of 20% as mentioned above is applied to total loan interest costs arising within a specific tax period, regardless of the loan interest costs arisen from related parties or independent parties.
Costs of leasing the office arisen before the establishment of the enterprise are not recorded as fixed assets but are amortized into business cost of the enterprise in a maximum time not exceeding 3 years (Clause 3 Article 3 of Circular No. 45/2013/TT-BTC).
For state-owned enterprises, enterprises with state - controlled stakes whose welfare-related expenses intended for employees within a year have been included deductible expenses upon determining enterprise income tax, if the enterprises have set aside welfare funds as regulated in Decree No. 91/2015/ND-CP , they are required to assure that an amount of welfare expense must not be deducted from two sources including “deductible expenses” and “welfare funds”.
In contrast, for raw materials, supplies, fuel whose consumption norms are not promulgated by the State, the cost accounting consumption may be made according to their actual consumption norms rather than being imposed the ceiling level (if the cost – accounting conditions are met).
Accordingly, in case in 2014 a company paid welfare-related expenses intended for employees such as expenses incurred on funeral or wedding of employees, expenses incurred on New Year's lucky money, holiday allowance, etc. if these expenses have legal invoices and documents as well as total welfare-related expenses do not exceed actual average one month's salary in the tax year of the company, they will be counted towards deductible expenses upon calculation of enterprise income tax.
However, the tax amount to be deducted must not exceed the EIT payable in Vietnam calculated on the income from the export of goods. If the tax paid outside Vietnam is higher than that in paid in Vietnam, the remaining amount shall be neither deducted in the next year nor refunded.
According to the General Department of Taxation’s opinions, in case an enterprise pays school fee for Vietnamese employees’ children, if the expenditure is stated in the company regulation with adequate invoices, documents, it is regarded to be welfare expenditure and is deducted upon calculating enterprise income tax (EIT) as prescribed in Clause 4 of Circular No. 96/2015/TT-BTC. The maximum level of the expenditure must not exceed actually – operating average salary of 01 month in a tax year of the enterprise.
According to the opinions of the Department of Taxation of Ha Noi city, in case due to objective causes and having reasonable reason (already informed to the Department of Labor, Invalids and Social Affairs) an enterprise has to increase overtime working hours in exceed of the limits prescribed by law, the amount of money for extra working hours actually paid to employees shall be included in deductible expense provided that there are sufficient documents.