What expenses are business households entitled to deduct when calculating personal income tax

Legal Consulting Office of Lao Dong Newspaper answers:

Clause 1, Article 6 of Decree 68/2026/ND-CP Regulating tax policies and tax management for business households and individual businesses (effective from March 5, 2026), stipulates as follows:

1. Deductible expenses are actual incurred expenses related to production and business activities, with sufficient invoices and documents in accordance with the law on invoices and documents, the law on accounting and non-cash payment documents for payments each time with a value of 05 million VND or more in accordance with the law on value-added tax, specifically as follows:

a) Costs of raw materials, materials, fuel, energy, goods used in production and business;

b) Salary costs, wages, bonuses, allowances, compulsory insurance and payments to employees with compulsory insurance contributions as prescribed; salary costs, wages, allowances and payments to employees under 01 month;

c) Costs of depreciation of fixed assets serving production and business activities. The level of depreciation of fixed assets is included in reasonable costs according to regulations on the regime of management, use and depreciation of fixed assets applied to enterprises. In case the value of fixed assets has been depreciated but is still continued to be used for production and business, depreciation is not allowed;

d) Outsourced service costs such as electricity, water, telephone, internet, transportation, asset lease, repair, maintenance with invoices and documents according to the provisions of law;

e) Costs of paying interest on production and business loans of credit institutions according to actual interest rates. Costs of paying interest on production and business loans of non-credit institutions do not exceed the levels specified in the Civil Code;

e) Other expenses directly serving production and business activities.

Thus, from March 5, 2026, the above-mentioned expenses of business households are deducted when calculating personal income tax.

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