Many businesses incur expenses for employees on business trips such as phone bills, travel allowances, gas, accommodation, food, etc. and are unsure whether these expenses should be included in the employee's taxable income.

Tax authorities instruct that if actual expenses arise related to production and business activities, have full legal invoices and documents according to regulations and are implemented in accordance with the company's financial regulations or internal regulations, they will be counted as deductible expenses when determining taxable income.

Cost of working Tung Doan.jpg
Many business expenses will not be included in the employee's personal income taxable income. Photo: Tung Doan

If the actual business trip expenses for employees are in accordance with regulations, they will not be included in the employee's taxable personal income.

In case the company allocates business trip expenses, telephone expenses... higher than the current state regulations, the portion of the expense exceeding the prescribed allocation amount will have to be included in personal income taxable income.

* In case the enterprise sends employees on business trips (including domestic and foreign business trips), if there are expenses of 20 million VND or more or expenses for purchasing air tickets and these expenses are paid by personal bank cards , they will be counted as deductible expenses when determining taxable income for personal income tax if they meet the following conditions:

+ Have appropriate invoices and documents issued by the supplier of goods and services.

+ The enterprise has a decision or document sending employees on business trips.

+ The financial regulations or internal regulations of the enterprise allow employees to pay business expenses and buy airline tickets using a personal bank card and the enterprise will then reimburse the employee for these expenses.

Article 6 of Circular No. 78/2014/TT-BTC (amended and supplemented in Clause 2, Article 6 of Circular No. 119/2014/TT-BTC and Article 1 of Circular No. 151/2014/TT-BTC) stipulates deductible and non-deductible expenses when determining taxable income.

Accordingly, businesses are allowed to deduct all expenses if they meet the following conditions:

+ Actual expenses incurred related to the production and business activities of the enterprise.

+ Expenses have sufficient invoices and legal documents according to the provisions of law.

+ Expenses if there is an invoice for purchasing goods or services each time with a value of 20 million VND or more (including value added tax) when paying must have a non-cash payment document.