Depreciation expense for employee shuttle services: Is it deductible when calculating corporate income tax?

As a principle, depreciation costs for fixed assets that are not used in the production, business of goods, and services activities are not included in deductible expenses when calculating corporate income tax according to the provisions stipulated in Article 4 of Circular 96/2015/TT-BTC.

However, this regulation also specifies:

In particular, fixed assets that serve employees working at the enterprise such as: mid-shift rest houses, mid-shift dining halls, changing rooms, restrooms, medical rooms or stations for medical examination and treatment, training facilities, vocational training centers, libraries, kindergartens, sports areas and equipment, interior furnishings that qualify as fixed assets installed in the aforementioned facilities; clean water storage tanks, parking garages; vehicles for transporting employees, housing directly for employees; construction costs for physical facilities, the cost of purchasing fixed asset machinery and equipment used for organizing vocational education activities are allowed to be depreciated and included in deductible expenses when determining taxable income.

Referring to your company's case, 3 vehicles with 25 seats each used for transporting employees, although not directly used in the company's production and business activities, are still included in reasonable deductible expenses for the depreciation of these fixed asset vehicles according to the above regulation.

Sincerely!