What is the current form of the electricity and water bill for enterprises in Vietnam?
- What is the current form of the electricity and water bill for enterprises in Vietnam?
- Vietnam: In case the enterprise leases the business premises and directly pays for electricity and water supply, will the expenses be deductible when calculating taxable income?
- Vietnam: In case the enterprise leases the business premises and directly pays for electricity and water supply to the lessor, will the expenses be deductible when calculating taxable income?
What is the current form of the electricity and water bill for enterprises in Vietnam?
Currently, the enterprise's form of payment of electricity and water bills is made according to Form 02/TNDN issued together with Circular 78/2014/TT-BTC as follows:
Download the current form of electricity and water bill: Here.
What is the current form of the electricity and water bill for enterprises in Vietnam?
Vietnam: In case the enterprise leases the business premises and directly pays for electricity and water supply, will the expenses be deductible when calculating taxable income?
Pursuant to Clause 2, Article 6 of Circular 78/2014/TT-BTC as amended by Article 4 of Circular 96/2015/TT-BTC as follows:
Deductible and non-deductible expenses when calculating taxable income
...
2. The expenses below are not deductible when calculating taxable income:
2.1. Expenses that do not meet all of the conditions in Clause 1 of this Article.
If the enterprise incurs expenses related to damage caused by natural disasters, epidemics, blazes, and other force majeure events (hereinafter referred to as calamities) without compensation, such expenses will be deductible when calculating taxable income. In particular:
The enterprise must determine the value of damage caused by calamities in accordance with law.
The damage value equals (=) total damage value minus (-) the value of damage that must be compensated by insurers other entities as prescribed by law.
a) Documents about assets/goods damaged by calamities that are included in deductible expenses include:
- A statement of value of damaged assets/goods made by the enterprise.
A statement of value of damaged assets/goods must specify the value of damaged assets/goods, causes, responsibilities for such damage, categories, quantity, value of recoverable assets/goods (if any); statement of damaged goods certified by legal representative of the enterprise.
- A compensation claim upheld by the insurer (if any).
- Documents about responsibility for provision of compensation (if any).
b) Expired goods and goods damaged because of natural deterioration that are not compensated will be deductible expenses when calculating taxable income.
Documents about expired goods and goods damaged because of natural deterioration and that are included in deductible expenses include:
- Statement of damaged goods made by the enterprise
A statement of value of damaged goods must specify the value of damaged goods, causes; categories, quantity, and values of recoverable goods (if any) enclosed with a statement of inventory of damaged goods certified by the legal representative of the company.
- A compensation claim upheld by the insurer (if any).
- Documents about responsibility for provision of compensation (if any).
c) The aforementioned documents shall be retained at the enterprise and presented to the tax authority on request.
...
2.15. Payments for electricity and water supply under contracts between households or individuals who lease out the business premises and the electricity, water suppliers without proof of payment in one of the cases below:
a) The enterprise leases the business premises and directly pays for electricity and water supply to the suppliers without payment receipts and the lease contract.
b) The company leases the business premises and directly pays for electricity and water supply to the lessor without a lease contract and receipts of payment to the lessor that match the electricity and water consumption.
Thus, in case the enterprise leases the business premises and directly pays for electricity and water supply, the cost of electricity and water payment will not be deducted from corporate income tax when:
- The enterprise leases the business premises and directly pays for electricity and water supply to the suppliers without payment receipts and the lease contract.
Vietnam: In case the enterprise leases the business premises and directly pays for electricity and water supply to the lessor, will the expenses be deductible when calculating taxable income?
Pursuant to Clause 2, Article 6 of Circular 78/2014/TT-BTC as amended by Article 4 of Circular 96/2015/TT-BTC as follows:
Deductible and non-deductible expenses when calculating taxable income
...
2. The expenses below are not deductible when calculating taxable income:
...
2.15. Payments for electricity and water supply under contracts between households or individuals who lease out the business premises and the electricity, water suppliers without proof of payment in one of the cases below:
a) The enterprise leases the business premises and directly pays for electricity and water supply to the suppliers without payment receipts and the lease contract.
b) The company leases the business premises and directly pays for electricity and water supply to the lessor without a lease contract and receipts of payment to the lessor that match the electricity and water consumption.
Thus, if the company leases the business premises and directly pays for electricity and water supply to the lessor without a lease contract and receipts of payment to the lessor that match the electricity and water consumption, the expenses above are not deductible when calculating taxable income.
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