Ho Chi Minh City Tax Department: Are Wages Paid in Cash or In-Kind Deductible for CIT Purposes?
RegHub explainer by New MarketerLast updated:
Based on:Nghị định số 320/2025/NĐ-CP - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
The Ho Chi Minh City Tax Department responded to the inquiry of FP Vietnam Co., Ltd. (response ticket No. 261225-31) regarding whether wages paid in cash or in-kind are deductible for corporate income tax (CIT) purposes. The Tax Department stated that, in order to provide an accurate answer in accordance with applicable legal regulations and the specific circumstances of the company, the company should contact its directly managing tax authority for guidance. The HCMC Tax Department did not provide substantive guidance on the conditions for deductibility in this case and instead referred the matter to the competent local tax authority.
Question
FP Vietnam Co., Ltd. (address: 57 Le Thi Hong Gam Street, Ben Thanh Ward, Ho Chi Minh City) asked whether wages paid to employees in cash or in-kind (each payment exceeding VND 5 million per person), where the company holds valid employment contracts, payroll records, payment vouchers, and has fulfilled all personal income tax and social insurance obligations, are deductible for corporate income tax (CIT) purposes.
Official guidance
The HCMC Tax Department (response ticket No. 261225-31) replied: The question relates to the company's tax obligations. In order to provide a correct answer in accordance with applicable regulations and the specific circumstances of the company, the Tax Department requests that the company contact its directly managing tax authority, providing the relevant documents, for guidance.
The Tax Department did not provide substantive guidance on the conditions for deductibility and did not cite any legal document in its response.
Action points
- The company should contact its directly managing tax authority (the relevant Sub-department of Taxation or Tax Department for the company's district) to obtain case-specific guidance.
- Prepare a complete file including: employment contracts, payroll records, payment vouchers, and documentation of personal income tax and social insurance compliance when working with the tax authority.