OFFICIAL LETTER NO. 654/TNI-QLDN1 – CONDITIONS FOR AUTHORIZATION TO RECEIVE WAGES ON BEHALF OF EMPLOYEES TO BE DEDUCTIBLE EXPENSES IN DETERMINING CORPORATE INCOME TAX (“CIT”)

Official letter No. 654/ TNI-QLDN1 – conditions for authorization to receive wages on behalf of employees to be deductible expenses in determining corporate income tax (“CIT”)

On February 4, 2026, Tay Ninh Tax Department issued Official Letter No. 654/TNI-QLDN1 on the conditions for authorization to receive wages on behalf of employees to be deductible when calculating Corporate Income Tax (CIT).

If an employee does not have a bank account and legally authorizes another individual to receive wages on their behalf, the enterprise is permitted to transfer the payment into the authorized person’s account.

This expense is still deductible provided that all of the following conditions are met:

Regarding labor records:
• Employment contract;
• Timesheet;
• Payroll;
• Evidence that the expense actually arises in service of production and business activities.

Regarding the legality of the authorization:
• A valid authorization contract/letter in accordance with civil law;
• The authorization document must be notarized or certified;
• Clearly state: the authorization to receive wages, information of the authorizing party and the authorized party, and the bank account information of the authorized recipient.

Regarding payment documents:
• Non-cash payment vouchers (for expenses of VND 5 million or more);
• Payment must be made into the authorized person’s account;
• The payment order must clearly state: salary payment for the employee under the corresponding authorization document.

👉 Whether the enterprise pays wages directly to employees or through an authorized person, only when payment and legal documentation are complete and compliant will the wage expense be accepted as deductible for CIT purposes.