COST Q&A

Question: What are deductible expenses for Corporate Income Tax (CIT) purposes?

Answer:
Deductible expenses are expenses that satisfy all conditions prescribed by the Corporate Income Tax (CIT) Law.
These are the expenses used for determining the enterprise’s CIT liabilities.

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Question: What conditions must deductible expenses meet for CIT purposes?

Answer:
An enterprise may include expenses as deductible expenses if all of the following conditions are fully satisfied:

• The expense is actually incurred and related to the enterprise’s production and business activities.
• The expense is supported by sufficient invoices and supporting documents in accordance with the law.
• For purchases of goods, services, or other payments with a value of VND 5 million or more per transaction:
  Non-cash payment documents must be available in accordance with regulations.

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