Can a company deduct office rents paid to an individual landlord ?
Hi DMS Attorney in Vietnam! My company has an office lease agreement with a person. This individual landlord does not issue invoices for rental payments received. Is my company eligible to count lease expenses as deductible expenses for CIT purpose ? Could you advise me on this issue ? Thank you!
Hi!
According to provisions in Point 2.5 Clause 2 Article 6 Circular No. 26/VBHN-BTC dated 09/14/2015:
In case an enterprise leases assets from an individual, documents for determining deductible expenses shall include: the lease contract; rent payment document.
In case an enterprise leases assets from an individual and there is an agreement in the lease contract that the enterprise shall pay tax on such individual’s behalf, documents for determining deductible expenses include the lease contract, rent payment document, and document of tax payment on the individual’s behalf.
In case an enterprise leases assets from an individual and there is an agreement in the lease contract that the rent is exclusive of tax (value-added tax, personal income tax) and that the enterprise shall pay tax on such individual’s behalf, the enterprise may include the total amount of rent, including the tax amount paid on such individual’s behalf, in deductible expenses.
Related topics:
Corporate Income Tax (CIT) rates in Vietnam.
Responsibility to submit VAT declaration in Vietnam
Conditions for input VAT deduction
Consulting services:
Phone: 0914 165 703 or email: dmslawfirm@gmail.com
Can a company deduct office rents paid to an individual landlord ?
Prepared by: Thi-Ha Nguyen, ACCA | DMS Law firm in Vietnam Director (Signed) Lawyer Do Minh Son |
RELATING ITEMS
Fiscal and monetary policies to support enterprises in year 2022
08 Feb, 2022// Group: LAW ON ACCOUNTING AND TAXESLaw office in Danang advise about fiscal and monetary policies to support enterprises in year 2022
Allocation of Personal Income Tax on income from salaries and wages
25 Nov, 2021// Group: LAW ON ACCOUNTING AND TAXESLaw firm in Danang advise on personal Income Tax (PIT) on income from salaries and wages in Vietnam
Allocate Value-Added Tax payable to provinces where the production facility is located
25 Nov, 2021// Group: LAW ON ACCOUNTING AND TAXESLaw firm in Danang advise on VAT payable to provinces where the production facility is located
Withholding tax on goods and services purchased from overseas suppliers
25 Nov, 2021// Group: LAW ON ACCOUNTING AND TAXESLaw firm in Danang, Vietnam advise about tax management for e-commerce, digital-based business
Chief Accountant is a statutory position of companies in Vietnam
19 Jul, 2021// Group: LAW ON ACCOUNTING AND TAXESLawyers in Danang advise about Chief Accountant or to hire an outsourced Chief Accountant ?