Can Salary Paid Twice Monthly in Cash Be Deducted as an Expense for Corporate Income Tax Purposes?
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Based on:Luật Thuế TNDN số 67/2025/QH15; Nghị định 320/2025/NĐ-CP - Ministry of Finance
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The Hanoi Tax Department confirmed that a 10-employee company paying salary twice monthly in cash (first payment on the 15th, second at month-end, each via a separate cash voucher) may deduct both salary payments as expenses for corporate income tax (CIT) purposes, provided proper supporting documents exist. Under Law on CIT No. 67/2025/QH15 and Decree 320/2025/ND-CP, salary expenses are deductible when supported by a payroll sheet, attendance record, and individual cash payment vouchers. The key conditions are that the expense must actually be incurred, relate to business operations, and be backed by adequate documentation. The tax authority advised the company to verify its situation against applicable tax laws and, if further queries arise, to consult http://hanoi.gdt.gov.vn or contact its direct tax management office.
Salary Paid Twice Monthly in Cash: CIT Deductibility
Responding Authority: Hanoi Tax Department
Situation
A company with 10 employees began paying salary twice monthly from December 2025:
- Payment 1 (15th of month): VND 3 million per employee × 10 employees = VND 30 million via one cash voucher
- Payment 2 (end of month): remaining balance per employee (varying amounts, total VND 40 million) via one cash voucher
Supporting documents: payroll sheet, attendance record, individual cash payment slip for each employee.
Legal Basis
- Law on Corporate Income Tax No. 67/2025/QH15
- Decree 320/2025/ND-CP
Tax Authority Conclusion
Both payments qualify as deductible expenses for CIT purposes, provided:
- The expense is actually incurred and relates to business operations
- Proper invoices and vouchers exist per applicable regulations
- Payroll sheet and attendance records are complete
- Individual payment slips exist for each employee
Note
The company should verify its actual situation against the relevant tax laws. For further queries, consult http://hanoi.gdt.gov.vn or contact the direct tax management office.