Many businesses incur expenses for employees on business trips such as phone bills, travel allowances, gas, accommodation, food, etc. and do not know whether these expenses should be included in the employee's taxable income or not.

The tax authority instructs 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.

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Many business trip expenses will not be included in the employee's personal income tax. 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 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 amount will have to be included in taxable income.

* In case an enterprise sends employees on business trips (including domestic and foreign business trips), if expenses of 20 million VND or more or the cost of purchasing airline tickets are incurred 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, enterprises 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.

+ Expenditures have sufficient invoices and legal documents as prescribed by law.

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