The cost of buying apartments for employees is not tax deductible

According to the provisions of Clause 2.2, Article 4 of Circular 96/2015/TT-BTC, housing for employees is depreciated and included in deductible expenses when determining corporate income tax.

Accordingly, in case the Company buys an apartment and is in the name of the owner for the purpose of housing employees according to the Company’s regulations, this apartment is allowed to depreciate and calculate it into reasonable expenses.

However, the cost of buying this apartment (including electricity, water, service charges…) is only for personal use, not for production and business activities, so it is not tax deductible. Input VAT (Article 14 of Circular 219/2013/TT-BTC).

In addition, the expenses incurred by the apartment such as depreciation, electricity and water bills, service charges must be included in the taxable income Personal income of the employees using the apartment (point dd, Clause 2, Article 2 of this Circular). 111/2013/TT-BTC).

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Address: L4-09.OT06 Landmark 4 Building Vinhomes Central Park, 720A Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi Minh City

 

Post Author: Luật DHP