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

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Phone: 0914 165 703 or email: dmslawfirm@gmail.com

Can a company deduct office rents paid to an individual landlord ?