Tiếng Việt
中文Whether the salary of the Head of a bailiff office is counted as a deductible expense when determining taxable corporate income depends on the organizational form of the bailiff office. Under Decree 08/2020/ND-CP, a bailiff office established by 01 bailiff is organized as a sole proprietorship; one established by 02 or more bailiffs is organized as a partnership. The Head of the Office is the legal representative and must be a bailiff.
1. Salary of the bailiff office Head when the Office is a sole proprietorship
When the bailiff office is a sole proprietorship, the Head of the Office is also the owner of the sole proprietorship. Under Point d, Clause 8, Article 10 of Decree 320/2025/ND-CP guiding the implementation of the Corporate Income Tax Law 2025 (No. 67/2025/QH15), salaries and wages of the owner of a sole proprietorship are among non-deductible expenses when determining taxable income. Therefore, salary paid to the Head of the Office in this model is not counted as a deductible expense.
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2. Salary of the bailiff office Head when the Office is a partnership
When the bailiff office is a partnership, the Head of the Office is a general partner bailiff assigned to manage. Such salary does not fall within the exclusions in Point d, Clause 8, Article 10 of Decree 320/2025/ND-CP (which only excludes salaries of sole proprietorship owners, owners of single-member LLCs owned by individuals, and remuneration of persons not directly participating in management). Therefore, the salary of the Head of the Office in the partnership model is counted as a deductible expense if the general conditions are met: actually incurred, with complete invoices and supporting documents, and related to production/business activities.
3. General conditions for salary expenses to be deductible
In addition to not being excluded, the salary expense must: be actually paid in the tax period; have payment documents as prescribed (bank transfer for expenses of 5 million VND or more under Decree 320/2025/ND-CP); be provided for in the labor contract, collective labor agreement, or financial regulations of the Office. Salary paid to the wrong recipient, without documents, or exceeding internal limits may be disallowed upon finalization.
Notes on applying current legal regulations
The content of this article is presented for reference purposes, helping readers understand the legal issue at an overview level. CIT regulations currently apply under the CIT Law 2025 and Decree 320/2025/ND-CP. Where precise determination for your Office is needed, you should contact an ANT Legal lawyer via 0966.475.966 for review and advice before proceeding.
Common risks to note
– Including a sole proprietorship owner’s salary in deductible expenses.
– Failing to distinguish sole proprietorships from partnerships.
– Lacking payment documents, leading to disallowed expenses upon finalization.
– Applying expired guiding instruments.
How can ANT Legal help?
ANT Legal assists in tax advisory from a legal perspective for bailiff offices and practising organizations. For prompt advice, please contact our lawyers via 0966.475.966.
Frequently asked questions
Can the salary of the Head of a bailiff office be counted as a deductible expense?
It depends on the Office’s organizational form. If the Office is a sole proprietorship, the salary of the Head of the Office (also the owner of the sole proprietorship) is not deductible under Point d, Clause 8, Article 10 of Decree 320/2025/ND-CP. If the Office is a partnership, the salary is deductible when the general conditions are met.
What are the general conditions for salary expenses to be deductible for CIT?
The expense must be actually incurred in the tax period; have complete invoices and documents (non-cash payment for expenses of 5 million VND or more); and be provided for in the labor contract, collective labor agreement or financial regulations of the unit.
What forms can a bailiff office be organized as?
Under Decree 08/2020/ND-CP: an office established by 01 bailiff is organized as a sole proprietorship; an office established by 02 or more bailiffs is organized as a partnership.
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