Many businesses, when purchasing goods from people, renting assets and services from individuals, do not have invoices or documents. With those expenses, businesses need to include reasonable expenses before calculating corporate income tax. So how to record reasonable costs for goods without invoices? Let’s find out with Pham Consult through this article!
Can buying and selling goods and services without invoices be determined as reasonable expenses and deductible from corporate income tax?
Pursuant to Point 2.4, Clause 2, Article 6 of Circular 78/2014/TT-BTC (amended by Article 4 of Circular 96/2015/TT-BTC), costs without invoices are still determined to be legitimate costs. legal and deductible when calculating corporate income tax if the following conditions are met:
– Buying agricultural products, seafood, and aquaculture products directly sold by producers or fishermen;
– Buy handmade products made of jute, rush, bamboo, leaves, rattan, straw, coconut shells, coconut skulls or materials salvaged from agricultural products from craft producers who do not do direct business sold out;
– Buy soil, stone, sand, and gravel from households and individuals who exploit it for direct sale;
– Buy scrap from people who directly collect it;
– Buying appliances, assets, and services for direct sale by households and individuals who do not do business;
– Purchase of goods and services from households and individual businesses (excluding the cases mentioned above) with a revenue level below the value-added tax revenue threshold (100 million VND/year).
– Have a list of purchases of goods and services
– Sale contract
– Payment vouchers
– The list of purchases of goods and services is signed by the legal representative or authorized person of the enterprise and is responsible before the law for accuracy and truthfulness.
– These expenses do not require non-cash payment documents for the purchase value of goods and services of 20 million VND or more.
– If the purchase price of goods or services on the list is higher than the market price at the time of purchase, the tax authority will determine based on the market price at the time of purchase of the same or similar goods or services on the market. Recalculate the price to recalculate deductible expenses when determining taxable income.
What are the conditions to become a reasonable cost?
Reasonable expenses are expenses that are deductible when determining taxable income and calculating corporate income tax
Pursuant to Article 6 of Circular 78/2014/TT-BTC (amended by Article 4 of Circular 96/2015/TT-BTC) stipulates as follows:
Deductible and non-deductible expenses when determining taxable income
- Except for non-deductible expenses mentioned in Clause 2 of this Article, enterprises can deduct all expenses if they fully meet the following conditions:
- a) Actual expenses incurred related to production and business activities of the enterprise.
- b) Expenses have enough legal invoices and documents according to the provisions of law.
- c) Expenditures if there are invoices for each purchase of goods and services with a value of 20 million VND or more (price includes VAT) must have non-cash payment documents when paying.
Non-cash payment documents comply with the provisions of legal documents on value added tax.
In case of one-time purchase of goods or services with a value of twenty million VND or more recorded on the invoice, but at the time of recording the cost, the enterprise has not yet paid, the enterprise will be included in the deductible expenses upon confirmation. determine taxable income. In case the enterprise does not have non-cash payment documents when making payment, the enterprise must declare and adjust costs for the value of goods and services without non-cash payment documents. The tax period in which cash payments arise (even in cases where the tax authority and functional agencies have decided to inspect and examine the tax period in which this expense arises).
For invoices for purchasing goods and services paid in cash that arose before Circular No. 78/2014/TT-BTC took effect, they do not have to be adjusted according to the provisions of this Point.
Accordingly, to be considered a reasonable cost, it must meet the following conditions:
– Actual expenses incurred related to production and business activities of the enterprise;
– Expenses have enough legal invoices and documents according to the provisions of law.
– Expenditures if there are invoices for each purchase of goods and services with a value of 20 million VND or more (price includes VAT) must have non-cash payment documents when paying.
What is the formula for calculating corporate income tax?
Pursuant to Article 6 of the Law on Corporate Income Tax 2008, Article 5 of Decree 218/2013/ND-CP, corporate income tax is calculated according to the following formula:
Corporate income tax = Taxable income for the period x Tax rate
(1) Taxable income:
Taxable income = Taxable income – Tax-exempt income – Losses carried forward according to regulations
Income subject to corporate income tax is determined as follows:
Taxable income = Revenue – Deductible expenses + Other income
(2) Corporate income tax rate
Based on Article 10, Article 13 and Article 14 of the Law on Corporate Income Tax 2008 and Article 10 of Decree 218/2013/ND-CP, the corporate income tax rate is 20%.
Note: For some cases where higher tax rates apply, such as oil, gas and other rare resource exploitation activities in Vietnam or preferential tax rates, the payment rate is lower.
Thus, through the article on Pham Consult, we have informed you about recording reasonable costs for goods without invoices. Hope the above information will be helpful to you.