The Government has just issued Decree 68/2026/ND-CP regulating tax policies and tax management for business households and individual businesses. The Decree takes effect from March 5, 2026.
One of the notable highlights of the Decree is the expenditures that are deductible and not deductible when determining personal income tax (Article 6).
Accordingly, expenditures that are not deductible when determining taxable income:
The expenditure is not related to production and business activities.
Expenses do not have sufficient invoices and documents as prescribed by law.
Salary, wages and salary-related expenses of business individuals, groups of business individuals, members of business households excluding compulsory insurance contributions; salary, wages and salary-related expenses that have been included in expenses but are not actually paid or have no payment documents.
The depreciation of fixed assets exceeding the prescribed level or depreciation for fixed assets not used for production and business activities.
Expenses for administrative violations, contract violations, and compensation due to the fault of individual businesses.
Residential land and works serving daily life on land, cars and assets registered for ownership or use in the name of individuals, except for cars and assets registered for ownership or use for transportation and tourism business purposes.
Expenses for personal and family needs. Business individuals are responsible for separately monitoring expenses for business operations and expenses for personal and family needs.
The Decree also stipulates that the deductible expenses are actual incurred expenses related to production and business activities, with sufficient invoices and documents in accordance with the law on invoices and documents, the law on accounting and non-cash payment documents for payments each time with a value of 05 million VND or more in accordance with the law on value-added tax, specifically as follows:
Costs of raw materials, materials, fuel, energy, and goods used in production and business.
Salary costs, wages, bonuses, allowances, compulsory insurance and payments to employees with compulsory insurance contributions as prescribed; salary costs, wages, allowances and payments to employees under 1 month.
Costs of depreciation of fixed assets serving production and business activities. The level of depreciation of fixed assets is included in reasonable costs according to regulations on management, use and depreciation of fixed assets applicable to enterprises.
In case fixed assets have depreciated their value but are still used for production and business, depreciation is not allowed.
External purchase service costs such as electricity, water, telephone, internet, transportation, asset lease, repair, maintenance with invoices and documents according to the provisions of law.
The cost of paying interest on production and business loans of credit institutions according to the actual interest rate. The cost of paying interest on production and business loans of non-credit institutions does not exceed the level prescribed in the Civil Code.
Other expenses directly serving production and business activities.
