Deductible Business Expenses for Individual Household Transport Businesses under PIT
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Based on:Thông tư 18/2026/TT-BTC; Luật Thuế TNCN - Ministry of Finance
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The Hanoi Tax Department provided guidance to a household transport business with annual revenue exceeding VND 3 billion (subject to PIT on revenue under Circular 18/2026/TT-BTC) on deductible expenses. Vehicle depreciation, fuel costs, and bank loan interest for purchasing the business vehicle are all recognized as reasonable expenses if adequately documented. Invoices issued in the individual owner's name (Nguyen Van A) are accepted because the household business name 'Ho Kinh Doanh Nguyen Van A' identifies the same legal person. Bank loan contracts under the individual's name are accepted provided the loan purpose is clearly for business use with supporting evidence. Required documentation includes: vehicle purchase invoice, depreciation schedule, fuel receipts, loan contract, and bank statements.
Deductible Business Expenses for Household Transport Businesses under PIT
Issuing Authority: Hanoi Tax Department
Applicable Entity: Vehicle rental and freight transport household business with annual revenue above VND 3 billion
Legal Basis
- Circular 18/2026/TT-BTC: Household businesses with revenue of VND 3 billion or more must declare and pay PIT on revenue basis.
- PIT Law and implementing regulations on allowable expense deductions.
Recognized Expense Categories
1. Vehicle Depreciation
- Recognized as a business expense when the vehicle serves business purposes.
- Invoices in the individual owner's name are accepted because the household business and the individual are the same legal entity.
- A formal depreciation schedule must be maintained.
2. Fuel Expenses
- Deductible with valid invoices or receipts (e-invoices or retail fuel receipts with complete details).
- Must be proportionate to the scale of business operations.
3. Bank Loan Interest
- Loan contracts under the individual's name are accepted if the stated purpose is business financing.
- Supporting documents required: loan contract, vehicle title, disbursement records showing funds used for business.
Required Documentation
- Vehicle purchase invoice
- Fixed asset depreciation register
- Fuel receipts
- Loan contract and bank account statements
- Transport business license (if applicable)
- Evidence that vehicle is used for business purposes