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On February 4, 2026, the Tay Ninh Provincial Tax Department issued Official Letter No. 654/TNI-QLDN1 regarding Corporate Income Tax (CIT) policies.
Accordingly, the content of Official Letter No. 654/TNI-QLDN1 of 2026 clarified the case where an employee of a company does not have a bank account and makes a lawful authorization for another individual to receive their salary on their behalf; the company is permitted to pay the salary into the authorized person’s bank account. This expense is included in the deductible expenses when calculating CIT. Specifically, the Tay Ninh Provincial Tax Department provides guidance on the conditions for authorized salary receipt to be deductible when calculating CIT as follows:
Pursuant to Clause 1, Article 94 of the 2019 Labor Code regulating the principles of salary payment:
Article 94. Principles of salary payment
1.The employer must pay salary directly, fully, and on time to the employee. In cases where the employee cannot receive the salary directly, the employer may pay the salary to a person lawfully authorized by the employee.
Pursuant to the provisions of the 2015 Civil Code on representation and authorization.
Accordingly, in cases where an employee of the company does not have a bank account and makes a lawful authorization for another individual to receive their salary on their behalf, the Company is permitted to pay the salary into the authorized person’s bank account. This expense is included in the deductible expenses when calculating CIT if it simultaneously meets the following conditions:
- Regarding labor records: Having a complete Labor Contract, Timesheet, and Payroll showing the actual expenses incurred to serve production and business activities.
- Regarding the legality of the authorization: Having an Authorization Contract/Power of Attorney established in strict accordance with civil law provisions (must be notarized or authenticated by a competent State agency), clearly stating the content of the authorization to receive salary, personal information of the authorizer and the authorized person, and the information of the bank account receiving the payment on their behalf.
- Regarding payment documents: Having non-cash payment documents (for expenses of VND 05 million or more) transferred to the authorized person’s account; the content of the document (Payment Order) must clearly state the content of the salary payment to the employee according to the corresponding authorization document.
