On February 27, 2019, the Hanoi City Tax Department issued Official Letter No. 7623/ CT-TTHT on the corporate income tax policy which set criteria for enterprises to determine deductible expenses.
Accordingly, Official Letter No. 7623/CT-TTHT provides guidelines for determining deductible expenses, after reporting to the General Department of Taxation, specifically:
Article 6, Circular No. 119/2016/TT-BTC, Amending and supplementing Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance guiding the implementation of Decree No. 218/2013/ND-CP dated December 26, 2013 of the Government stipulates and guides the implementation of the Law on Enterprise Income Tax as follows:
Enterprises can deduct all expenses if they meet the following conditions:
a) Actual expenses arising related to production and business activities of enterprises;
b) Expenses with sufficient legal invoices and vouchers as prescribed by law.
c) Expenses if there are invoices for buying goods and services each time with a value of VND 20 million or more (price inclusive of VAT) when payment must have non-cash payment vouchers.
The promulgation of Official Letter No. 7623/CT-TTHT of Hanoi Tax Department shows that this is a regular activity of the agency, in order to support enterprises in solving problems and applying the law consistently.