Is the cost of printing the 2025 calendars given to customers deductible when calculating corporate income tax in Vietnam?

Is it necessary to issue an invoice when giving out the 2025 calendars to customers in Vietnam?

According to Clause 1, Article 4 of Decree 123/2020/ND-CP on the principles of creating, managing, and using invoices and documents as follows:

Principles for creating, managing, and using invoices and documents

1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods or services are used for promotion, advertising, samples; goods or services used for giving, gifting, exchanging, substituting wages for employees, and internal consumption (except for internally rotating goods for continuing the production process); or goods exported under forms of lending, borrowing, or returning goods) and must fully record the contents as prescribed in Article 10 of this Decree; in the case of using electronic invoices, they must follow the standard data format of the tax authority as prescribed in Article 12 of this Decree.

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Thus, in principle, when selling goods or providing services, the seller must issue an invoice, including cases where goods or services are used for giving, gifting... Therefore, when the company gives out the 2025 calendars to customers, it is still required to issue an invoice.

Is the cost of printing the 2025 calendars given to customers deductible when calculating corporate income tax in Vietnam? (Image from the Internet)

Is the cost of printing the 2025 calendars given to customers deductible when calculating CIT in Vietnam?

Based on the provisions of Clause 1, Article 6 of Circular 78/2014/TT-BTC, which is amended by Clause 2, Article 6 of Circular 119/2014/TT-BTC and Article 4 of Circular 96/2015/TT-BTC regarding deductible and non-deductible expenses when determining taxable income for CIT as follows:

Deductible and non-deductible expenses when determining taxable income

1. Except for non-deductible expenses specified in Clause 2 of this Article, enterprises are permitted to deduct all expenses if they meet the following conditions:

a) The expense must actually arise and relate to the production and business activities of the enterprise.

b) The expense must have full legal invoices and documents as required by law.

c) If an expense involves the purchase of goods or services with an individual invoice valued at 20 million VND or more (including VAT), payment must be evidentially non-cash.

Non-cash payment evidence is implemented according to the provisions of legal documents on value-added tax.

In cases where goods or services are purchased at 20 million VND or more per invoice, and by the time of recording expenses, if the enterprise has not yet made payment, the enterprise can include it as a deductible expense when determining taxable income. If payment is made without non-cash payment evidence, the enterprise must declare and adjust to reduce the expense by the value of goods or services lacking non-cash payment evidence during the tax period when cash payment arises (including cases where tax authorities and competent agencies have made tax audits or inspections during the tax period with this expense).

For invoices of goods or services paid in cash arising before Circular 78/2014/TT-BTC comes into force, no adjustment is required as per this Point.

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According to the provisions above, if the company printing the 2025 calendars for customers meets all the above-mentioned conditions, it is deductible when calculating CIT.

Does the revenue for calculating CIT include VAT in Vietnam?

According to the provisions of Clause 1, Article 8 of Decree 218/2013/ND-CP as follows:

Revenue

Revenue for calculating taxable income is carried out as prescribed in Article 8 of the Law on Corporate Income Tax.

1. Revenue for calculating taxable income is all the proceeds from sales, processing fees, service provision, including subsidies, surcharges, and premiums that the enterprise is entitled to, regardless of whether the money has been collected or not.

For enterprises declaring and paying VAT under the credit method, the revenue for CIT is that which excludes VAT. For enterprises declaring and paying VAT under the direct method on added value, the revenue for CIT includes VAT.

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Thus, revenue for calculating CIT is determined as follows:

- For enterprises declaring and paying VAT by the credit method: Revenue for CIT excludes VAT.

- For enterprises declaring and paying VAT by the direct method on added value: Revenue for CIT includes VAT.