Enterprises can buy uniforms for employees and include them in deductible expenses when determining CIT, but within certain limits.
Legal grounds:
- Circular No. 78/2014/TT-BTC;
- Circular No. 96/2015/TT-BTC.
Enterprises have the right to buy clothes for employees. However, this expense is limited to a maximum. Also it must be the actual expenses incurred, with all invoices and documents.
Pursuant to Clause 2, Article 6 of Circular No. 78/2014/TT-BTC, as amended and supplemented by Circular No. 96/2015/TT-BTC as follows:
Article 6. Deductible and non-deductible expenses when determining taxable income
2. Expenses that are not deductible when determining taxable income include:
2.7. Expenses for clothing in kind for employees without invoices or vouchers. The expenditure on clothing in cash for employees exceeds 05 (five) million VND/person/year.
In case an enterprise has to pay both cash and in-kind clothing for employees to be included in deductible expenses, the maximum expenditure for cash expenditures shall not exceed 05 (five) million VND/person/year. In kind, there must be invoices and vouchers.
For business lines with specific characteristics, these expenses shall be implemented in accordance with specific regulations of the Ministry of Finance.
According to the above regulations, expenditures for buying clothes for employees are only deductible when determining CIT if:
- Payment in kind with full invoices and vouchers;
- Expenses in cash paid to employees, the deduction shall not exceed 05 (five) million VND/person/year.
