Question:
I would like to inquire about this: In our labor contracts, our company provides support for meals between shifts. And the company organizes cooking for employees by providing a stipend to a self-cooking kitchen (without purchase invoices). I would like to ask if these expenses are reasonable and deductible when determining taxable income.
Answer:
Based on Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, which provides guidance on Personal Income Tax (PIT).
Based on Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, also issued by the Ministry of Finance, providing guidance on Corporate Income Tax (CIT) (effective from August 6, 2015, and applicable to CIT calculations from 2015 onwards) with amendments and supplements to Article 6 of Circular No. 78/2014/TT-BTC (amended and supplemented under Section 2 of Article 6 of Circular No. 119/2014/TT-BTC and Article 1 of Circular No. 151/2014/TT-BTC).
In the above case, where the company provides support for meals between shifts to employees (according to the company’s regulations or specific provisions in labor contracts) and incurs actual expenses for this purpose, these expenses can be reasonable and deductible when determining taxable income for Corporate Income Tax (CIT) purposes. However, if the company enters into a contract with an organization responsible for cooking, it should have invoices as a basis for calculating deductible expenses.
