According to the provisions of Clause 2, Article 6 of Decree 68/2026/ND-CP, business households when determining personal income taxable income (PIT) need to pay special attention to non-deductible expenses to avoid risks when determining tax obligations according to regulations.
Specifically, expenses not included in valid expenses include:
- First, expenses that are not directly related to production and business activities. This is a principle requiring all expenses to serve the purpose of generating revenue for business activities.
- Second, expenses do not have full invoices and documents as prescribed by law. Lack of valid documents will prevent expenses from being included in deductible expenses when determining taxable income.
- Third, salaries, wages and salary-related amounts of business individuals themselves, groups of business individuals or members of business households (excluding compulsory insurance contributions). At the same time, amounts that have been accounted for in expenses but are not actually paid or do not have payment documents are also not included in the deductible expenses.
- Fourth, depreciation costs of fixed assets exceeding the prescribed level or depreciation for fixed assets not serving production and business activities.
- Fifth, administrative violation fines, contract violation fines and compensation for errors of individual businesses.
- Sixth, expenses related to personal consumption assets such as residential land, residential works on land, cars and assets registered for ownership or registered for personal use, except in cases where these assets are used directly for transportation and tourism business activities as prescribed.
- Seventh, expenses for personal and family needs. Regulations require business individuals to separately track expenses for business operations and expenses for personal and family needs to determine tax obligations according to regulations.
In general, the new regulations set out stricter requirements in cost management, forcing business households to improve financial transparency and fully comply with regulations on invoices and documents if they want to have valid costs calculated when determining PIT.
