As of January 1, 2026, the amended Corporate Income Tax Law and Decree 320/2025/NĐ-CP have come into effect, introducing new regulations on deductible expenses that are causing concerns for many businesses, particularly small enterprises and transitioning business households.
On the Ministry of Finance’s e-portal, one of the key questions raised is whether salary payments made in cash or in kind, exceeding 5 million VND per person per payment, qualify as deductible expenses for corporate income tax purposes.
According to the concerned business, Clause c, Article 9 of Decree 320/2025/NĐ-CP states: “Expenses must have non-cash payment invoices and receipts for purchases of goods, services, and other payments of 5 million VND or more per transaction. Non-cash payment receipts must comply with value-added tax regulations.”
This has led businesses to worry that cash or in-kind salary payments above 5 million VND per transaction might fail to meet non-cash payment requirements, disqualifying them from deductible expenses.
In response, the Ministry of Finance directly referenced the Corporate Income Tax Law No. 67/2025/QH15 and Decree 320/2025/NĐ-CP, clarifying the scope of non-cash payment conditions.
Under the Corporate Income Tax Law No. 67/2025/QH15 dated June 14, 2025:
“Article 9. Deductible and Non-Deductible Expenses in Determining Taxable Income
1. Except for expenses specified in Clause 2, businesses may deduct expenses when determining taxable income if they meet the following conditions:
a) Expenses are directly related to production and business activities, including supplementary expenses for research and development;
b) Other actual expenses, including:
c) Expenses with non-cash payment invoices and receipts as required by law, except for specific cases defined by the Government.
Based on Decree No. 320/2025/NĐ-CP dated December 15, 2025, detailing provisions of the Corporate Income Tax Law:
“Article 9. Deductible Expenses in Determining Taxable Income
1. Except for non-deductible expenses under Article 10, businesses may deduct expenses if they meet the conditions in points a, b, and c:
a) Expenses are directly related to production and business activities, including supplementary expenses for research and development;
b) Expenses have valid invoices and receipts as required by law.
c) Expenses of 5 million VND or more per transaction must have non-cash payment receipts, in compliance with value-added tax regulations.
Based on these regulations, salary payments of 5 million VND or more without non-cash payment receipts, as per Clause c, Article 9 of Decree 320/2025/NĐ-CP, are not deductible for corporate income tax purposes.
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