Company purchases phones for customer service – What are the conditions for tax-deductible expenses under CIT?

Based on Article 4 of Circular 96/2015/TT-BTC amending and supplementing Article 6 of Circular 78/2014/TT-BTC, the provisions are as follows:

Unless the expenses that are not deductible as specified in Clause 2 of this Article, the enterprise is allowed to deduct all expenses if they meet the following conditions:

- The expenses are actually incurred and related to the business and production activities of the enterprise.

- The expenses have sufficient lawful invoices and documents as stipulated by law.

- For expenses with invoices for goods and services with a value of VND 20 million or more (inclusive of VAT) per transaction, payment must be made through non-cash payment methods.

Non-cash payment documents must be in accordance with the regulations of the legal documents on value-added tax.

In cases where the purchase of goods and services per transaction with a value of VND 20 million or more is recorded on the invoice and, by the time the expenses are recognized, the enterprise has not made the payment, the enterprise can include such expenses in the deductible expenses when determining taxable income. In cases where the enterprise does not have non-cash payment documents at the time of payment, the enterprise must declare and adjust the reduction of expenses for the portion of goods and services' value without non-cash payment documents in the tax period in which payments made by cash arise (including cases where tax authorities and relevant agencies have decided to inspect, audit the tax period which includes these expenses).

For invoices for purchasing goods and services that were paid by cash before the effective date of Circular 78/2014/TT-BTC, adjustments do not need to be made in accordance with this Point.

Therefore, according to the above provisions, in the case of your company purchasing phones for employees to support customer care, all lawful invoices and documents must be available (if purchasing phones with a value of VND 20 million or more per transaction, payment must be made with non-cash payment documents) to be considered deductible expenses.

Sincerely!