Reasonable Expenses Deductible for Corporate Income Tax Calculation

According to Clause 3, Article 1 of the Law amending the Laws on Tax 2014:

Except for expenses that are not deductible when determining taxable income, enterprises are allowed to deduct all expenses when determining taxable income if they meet the following conditions:

Actual expenses incurred related to the production and business activities of the enterprise; expenses for vocational education activities; expenses for the performance of defense and security tasks of the enterprise according to the provisions of the law.

Expenses have sufficient invoices and documents according to the provisions of the law. For invoices for the purchase of goods and services with a value of twenty million dong or more, there must be non-cash payment documents, except for cases where non-cash payment documents are not required according to the provisions of the law.

Thus, to be recognized as a reasonable expense for deduction when determining taxable income, two conditions must be met: First, the expense must be an actual expense incurred related to production and business activities; Second, there must be sufficient legal invoices and documents.

Customer conferences are also one of the activities that promote the production and business activities of your company, so it can be said that the actual expense incurred is related to production and business activities. This conference expense has been contracted and invoiced, so the second condition is also satisfied.

Therefore, the cost of organizing this customer conference will be recognized as a reasonable expense to be deducted when calculating corporate income tax.

Sincerely!