DO ADDITIONAL PAYMENTS OF OVER 5 MILLION VND FOR CORPORATE INCOME TAX REDUCTIONS NEED TO BE TRANSFERRED VIA BANK TRANSFER?

Do additional payments exceeding 5 million VND for corporate income tax reductions to female employees need to be transferred via bank transfer? Let’s explore this further with Pham Consult!

Do additional payments exceeding 5 million VND for corporate income tax reductions to female employees need to be transferred via bank transfer?

Based on Article 21 of Decree 320/2025/ND-CP, the following is clearly stated:

Other cases of tax exemption and reduction:

1. Enterprises engaged in manufacturing, construction, and transportation (excluding non-profit organizations and offices of corporations and general companies that do not directly engage in production and business) employing between 10 and 100 female workers, where the number of female workers accounts for more than 50% of the total number of regularly employed workers, or employing more than 100 regularly employed female workers where the number of female workers accounts for more than 30% of the total number of regularly employed workers of the enterprise, are entitled to a reduction in corporate income tax equal to the additional expenses for female workers, including:
2. a) Retraining expenses;
3. b) Salary and allowance expenses (if any) for teachers at nurseries and kindergartens organized and managed by the enterprise;
4. c) Additional health check-up expenses during the year;
5. d) Compensation for female employees after childbirth, according to specific rates stipulated by competent authorities;
6. e) Salaries and allowances paid for the time female employees are on leave after childbirth or breastfeeding, but still work.

The additional expenses for female employees eligible for corporate income tax reduction as stipulated in this clause must meet the conditions regarding invoices and non-cash payment documents as stipulated in Clause 1, Article 9 of this Decree.

According to regulations, the additional expenses for female employees eligible for corporate income tax reduction as stipulated in Clause 1, Article 21 of Decree 320/2025/ND-CP must meet the conditions regarding invoices and non-cash payment documents as stipulated in Clause 1, Article 9 of Decree 320/2025/ND-CP.

Referring to Clause 1, Article 9 of Decree 320/2025/ND-CP

Deductible expenses when determining taxable income

1. Except for non-deductible expenses as stipulated in Article 10 of this Decree, enterprises are allowed to deduct expenses when determining taxable income if they meet the conditions in points a, b, and c below:
2. c) Expenses with non-cash payment documents for the purchase of goods, services, and other payments with a value of 5 million VND or more. Non-cash payment documents must comply with the regulations of the laws on value-added tax.

Based on the above regulations, in order for additional expenses for female employees to be eligible for corporate income tax reduction for enterprises employing a large number of female employees as stipulated above, expenses exceeding 5 million VND must be transferred via bank transfer.

Which additional expenses for female employees are deductible when calculating corporate income tax?

According to point i, clause 8, Article 10 of Decree 320/2025/ND-CP, it is clearly stated as follows:

Expenses not deductible when determining taxable income

Expenses not deductible when determining taxable income are implemented according to the provisions of clause 2, Article 9 of the Corporate Income Tax Law, specifically as follows:

8. Expenses for employees in one of the following cases:
9. i) The following deductible expenses, but if the expenses are not for the correct recipient or purpose:

i1) Additional expenses for female employees, including: Expenses for retraining female employees in cases where the old profession is no longer suitable and they must switch to another profession according to the enterprise’s development plan, including tuition fees (if any) plus the difference in salary grade (ensuring 100% salary for those attending training); The following expenses are deductible:

Costs for salaries and allowances (if any) for teachers teaching at nurseries and kindergartens organized and managed by the enterprise; costs for organizing additional health check-ups during the year, such as occupational disease, chronic disease, or gynecological examinations for female employees; compensation for female workers after childbirth; overtime allowance for female workers in cases where, for objective reasons, female workers do not take leave after childbirth or breastfeeding but remain working for the enterprise, paid according to current regulations, including cases where female workers are paid by piecework and continue working during periods not covered by leave

Accordingly, additional expenses for female workers are deductible, including: expenses for retraining female workers in cases where their old job is no longer suitable and they need to switch to another job according to the enterprise’s development plan, including tuition fees (if any) plus the difference in salary grade (ensuring 100% salary for those attending training); salary and allowance costs (if any) for teachers teaching at nurseries and kindergartens organized and managed by the enterprise; expenses for organizing additional health check-ups during the year such as occupational disease, chronic disease, or gynecological examinations for female employees; compensation for female workers after childbirth; overtime allowance for female workers in cases where, for objective reasons, female workers do not take leave after childbirth or breastfeeding but remain working for the enterprise, paid according to current regulations, including cases where female workers are paid based on output and continue working during the period not covered by the regulations;

Note: The above expenses must be for the correct purpose and subject to be deductible.

What constitutes a company employing a large number of female workers?

Based on Article 74 of Decree 145/2020/ND-CP, it is clearly stated as follows:

Employers employing a large number of female workers

An employer employing a large number of female workers is an employer that falls into one of the following cases:

1. Employing from 10 to less than 100 female workers, in which the number of female workers accounts for 50% or more of the total workforce.
2. Employing from 100 to less than 1,000 female workers, in which the number of female workers accounts for 30% or more of the total workforce.
3. Employing 1,000 or more female workers.

Accordingly, to be considered a company employing a large number of female workers, the employer must fall into one of the following categories:

– Employing from 10 to less than 100 female workers, where the number of female workers accounts for 50% or more of the total workforce.

– Employing from 100 to less than 1,000 female workers, where the number of female workers accounts for 30% or more of the total workforce.

– Employing 1,000 or more female workers.