As you know: "Corporate income tax" is an important tax in the tax system of countries. Corporate income tax is not only important in terms of acting as a large revenue generator for the state budget, but also an effective tool for the state to regulate the macro economy.

Therefore, corporate income tax regulations need to be constantly updated by businesses, in today's article, we will talk about a small part of this tax. "Expenses with norms that enterprises need to comply with to be recognized as reasonable and valid expenses when calculating corporate income tax", accountants often omit this content, specifically as follows:

Firstly, in terms of asset depreciation expense, there are 2 cases that need attention

Case 1: Regarding the “depreciation time frame”:

The depreciation period for fixed assets must fall within the framework promulgated by the Ministry of Finance in accordance with regulations on management, use and depreciation of fixed assets.

Case 2: Regarding the recognition of the historical cost of fixed assets:

Enterprises are only allowed to record depreciation expense corresponding to the “historical cost equal to or less than 1.6 billion dong per vehicle for passenger cars of 9 seats or less, not applicable to enterprises that do business in passenger transport and hotel tourism”.

Note further, assets that do not meet the conditions to be recognized as fixed assets (i.e. with historical cost of less than VND 30 million) are classified as tools and will be amortized over a period of time not more than 3 years.

Second, the norm of “Payment value” must use “non-cash payment”:

For goods and service purchase invoices each time with a value of 20 million VND or more (including value added tax), there must be non-cash payment vouchers.

Third, the norm on costume spending:

The expenditure on clothing in cash for employees must not exceed 05 (five) million VND per person per year.

Fourth, Insurance norms:

• The deduction for payment to the voluntary pension fund, purchase of voluntary retirement insurance, and life insurance for employees must not exceed VND 3 million per month per person.

• Not to spend more than prescribed by law on social insurance and health insurance.

Fifth, the norm of interest expense:

The cost of paying interest on loans for production and business loans of individuals and organizations that are not credit institutions or other economic organizations must not exceed 150% of the basic interest rate set by the State Bank of Vietnam. Vietnam announced at the time of borrowing.

Sixth, Norms on management hiring costs:

The expenses related to the hiring of management for the business of prize-winning electronic game business and casino business must not exceed 4% of the turnover of prize-winning video games and casino business.

Seventh, Norms on welfare expenditures:

Expenditures of a welfare nature, directly spent on employees such as funeral expenses, wedding expenses, vacation expenses, medical treatment support expenses, the total amount of welfare expenses mentioned above must not exceed more than 1 month actual average salary.

Eight, the norm of consumption in production:

Expenditures in excess of the norm of consumption of raw materials, fuel, energy and goods for a number of raw materials, fuel, energy and goods which have been promulgated by the State shall not be deductible when calculating corporate income tax.

Ninth, Norms on allocation of management costs:

Business management expenses allocated by the overseas company to their permanent establishments in Vietnam must not exceed the expense level calculated by the following formula:

In summary, for the nine types of expenses presented above, enterprises need to pay attention to spending within the norm so as not to be considered as non-deductible expenses when calculating corporate income tax.