Vietnam MOF Clarifies Corporate Income Tax Deductibility of Reimbursements to Employees on Purchases for Employers

The Vietnamese Ministry of Finance April 25 clarified the corporate income tax deductibility of reimbursements to employees on purchases made for employers. The clarification includes that: 1) an employer can deduct reimbursements paid to employees on purchases of goods and services made on its behalf if the purchases were made with non-cash payment vouchers and each valued at 5 million Vietnamese dongs (US$190) or more, and if the vouchers comply with VAT law; 2) under Government’s Decree No. 320/2025/ND-CP and Circular No. 20/2026/TT-BTC, if the an employee makes purchases meeting this threshold to serve the employer’s production and business activities, ...