On October 6, 2023, Binh Dinh Provincial Tax Department issued Official Dispatch No. 3431/CTBDI-TTHT, whereby:
In case the Company invests and purchases fitness and sports equipment such as treadmills, weightlifting equipment, volleyball courts, and badminton courts to serve employees working at the Company, then:
– Depreciation expenses for fixed assets are volleyball courts, badminton courts (hereinafter referred to as sports areas) and equipment and furniture that qualify as fixed assets installed in the mentioned sports areas. The above services for employees are calculated as deductions when determining taxable income.
– Because the fixed asset depreciation expense mentioned above is determined not to be a welfare expense paid directly to employees, the deductible amount is not limited to not exceed one month’s actual average salary during the year according to Clause 4, Article 3 of Circular No. 25/2018/TT-BTC.
