In case the Center is a dependent accounting unit of the Company and has no legal status, if there is a legal authorization document, the voucher of bank transfer from the Center's account to the seller's account and from the customer's account to the Center's account, which satisfies the condition that a cashless payment document is required by tax law.

The Ho Chi Minh City ITM Joint Stock Company is a Japanese language training company, licensed by Ho Chi Minh City Department of Education and Training to establish Vu Si Japanese Language Center. The center opened a bank account with the account holder name "Vu Si Japanese Language Center" and registered with the Department of Planning and Investment of Ho Chi Minh City.

The Company authorizes the Center to pay all costs and transfers from the bank's account. The company would like to ask, are the expenses for the Center's work such as salaries, facilities rental, etc… counted against deductible expenses when calculating corporate income tax (CIT)? Does the company need to add other documents to perform the above fee calculation?

The company has signed a training contract with customers since 2012, up to now, the Company has signed an appendix of the contract on changing the receiving account: "The Vu Si Japanese Language Center". The invoice is still issued by the Company because the Accounting of Center is dependent and has no legal entity.

Through the receiving and responding System to recommendations of enterprises, the Ho Chi Minh City ITM Joint Stock Company would like to ask, if customers pay by bank transfer to the Center's bank account, can customers be included in deductible expenses when calculating CIT is not?

Regarding this issue, the General Department of Taxation - Ministry of Finance gives the following opinion:

In Article 4 of Circular No. 96/2015 / TT-BTC dated June 22, 2015 of the Ministry of Finance amending and supplementing Article 6 of Circular No. 78/2014 / TT-BTC

 “Deductible and non-deductible expenses when calculating taxable income

1. Except for the non-deductible expenses prescribed in Clause 2 of this Article, every expense is deductible if all of these following conditions are satisfied:

a) The actual expense incurred is related to the enterprise’s business operation.

b) There are sufficient and valid invoices and proof for the expense under the regulations of the law.

c) There is proof of non-cash payment for each invoice for purchase of goods/ services of VND 20 million or over (including VAT).

The proof of non-cash payment must comply with regulations of law on VAT.

According to Clause 4, Article 9 of Circular No. 39/2014 / TT-BTC dated March 31, 2014 of the Ministry of Finance on invoices: “In cases where an organization has its attached units and branches that use the same invoice form of the organization but declare VAT separately, each attached unit or branch must send a notice of issue to the managing tax office. In case an organization has its affiliated units and branches that use the same invoice form of the organization but declares VAT on their affiliated units or branches, their affiliates and branches are not required to declare VAT. invoice release notice”.

Article 1 of Circular No. 173/2016 / TT-BTC dated October 28, 2016 of the Ministry of Finance regulates the amendments and supplements to the first paragraph, Clause 3, Article 15 of Circular No. 219/2013 / TT-BTC as follows:

“3. Bank transfer confirmations are documentary evidence proving the transfer of money from the buyer’s account to the seller’s account opened at providers of payment services under legitimate payment methods such as checks, payment orders, cash collection orders, bank cards, credit cards, SIM cards (digital wallets) and other means of payment as prescribed (including the cases in which the buyer transfer money from the buyer’s account to the seller’s account carrying the name of the owner of a private enterprise or from the buyer's account carrying the name of the owner of the enterprise to the seller's account)”.

Pursuant to the above provisions, in principle, companies are allowed to deduct expenses if they arise in relation to their production and business activities; have enough lawful invoices and documents as prescribed by law (invoices for purchase of goods or services each time are worth VND 20 million or more (prices inclusive of VAT) must be accompanied by vouchers. non-cash payments).

According to the content of the question, in case the Vu Si Japanese Language Center is a dependent accounting unit of ITM Joint Stock Company, there is no legal status, if there is a legal authorization document that the Company authorizes The Center If the Customer is eligible for payment of expenses and receives money from the customer, the voucher of payment via the bank from the Center's account to the seller's account and from the customer's account to the Center's account shall meet the conditions. is a voucher of non-cash payment in accordance with the tax law.

In case, Vu Si Japanese Language Center is a dependent accounting unit of ITM Joint Stock Company and has no legal status, the use of invoices of the Center (the same invoice form of the Company) shall comply with regulations. In Clause 4, Article 9 of Circular No. 39/2014 / TT-BTC.