Detailed Guide on Business Trip Allowance for Enterprises

One of the important expenses for any business is business trip allowances. To ensure these expenses are considered reasonable when determining taxable income, businesses need to comply with the following basic regulations:

1. Conditions for business trip allowances to be considered a deductible expense when determining taxable income (TNDN):

According to Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015, by the Ministry of Finance:

• The expense must be directly related to the business's production and business activities.
• The business must provide valid invoices and receipts in accordance with the law.
• Expenses of 20 million VND or more must be paid by bank transfer, in accordance with VAT regulations.
• The expense must comply with the business's internal financial regulations or policies.

2. Applicable to business trip allowances such as:

• Phone bills.
• Travel allowance, fuel costs.
• Accommodation and meal expenses during business trips.
• Other allowances directly serving the business trip.

3. For expenses exceeding the set limits:

According to Clause 4, Article 2 of Circular 111/2013/TT-BTC dated August 15, 2013, if the company reimburses business trip allowances, phone allowances, meal expenses, etc., higher than the current State regulations, then:

• The excess amount will be considered taxable income for the employee.

Example:

• The standard business trip allowance is 200,000 VND per day, but the company pays 300,000 VND per day → the excess of 100,000 VND will be considered taxable income.

4. Mandatory conditions for expenses to be considered deductible:

According to Article 6 of Circular 96/2015/TT-BTC, businesses must ensure:

• The expense has valid invoices and receipts.
• The expense is directly related to production and business activities.
• For expenses over 20 million VND, they must be paid through bank transfer, not in cash.

5. Cases where expenses are not deductible:

• Expenses exceeding the prescribed limits but without a clear internal policy.
• Expenses without valid invoices and receipts.
• Expenses serving personal purposes, not related to business activities.

💡 Advice:

• Businesses should establish clear internal financial regulations to ensure compliance when calculating expenses.
• Regularly check and keep valid invoices and receipts for all business trip expenses.
• Stay updated on the latest tax regulations to avoid violations and optimize business tax expenses.

By following these regulations, you can ensure your business complies with tax obligations and optimizes its expenses reasonably!