Question:
Our company falls under the category of micro-enterprises and does not have an in-house accountant. Currently, the company hires an individual to provide accounting and tax reporting services at a monthly salary of 500,000 Vietnamese Dong. Can this salary expense be considered as a deductible expense when determining corporate income subject to CIT?
Answer:
Based on Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, issued by the Ministry of Finance (as amended and supplemented in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, also issued by the Ministry of Finance), which provides guidance on CIT, specifying deductible and nondeductible expenses when determining CIT, in principle, if a company hires an individual to provide services and has a service contract or an agreement with that individual, the company must prepare a purchase ledger for goods and services purchased according to the form No. 01/TNDN (as stipulated in Circular No. 78/2014/TT-BTC) when disbursing payments to the individual. These expenses can be counted as deductible expenses when determining CIT
