Guidance on depreciation expenses relating to fixed assets as capital contribution:13 August 2014, the GDT issued Official Letter 3240 providing guidance on depreciation of fixed assets as capital contribution which are used for business and manufacturing, for CIT purposes. Accordingly, depreciation of fixed assets contributed by individuals that are properly recognised as increased charter capital by the licensing authority and are used for business and manufacturing purposes,
will be deductible for CIT purposes.

Business trip expenses paid overseas via personal credit cards are deductible expenses:

According to Official Letter 3819 dated 6 September 2014 of the GDT, where a company sends employee abroad for business, if the arising business expenses exceed VND 20 million, payment for such expenses via credit cards of the employees working abroad is accepted as a form of non-cash payment and the expenses will be accounted into deductible expenses for CIT purposes if the following conditions are met:

• Having appropriate invoices, documents issued;
• Decision or document on assigning employees abroad for business;

Please note the company should have internal regulations stating that employees are allowed to make payment via their own cards, and then such expenses shall be reimbursement by the company.

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