1. Regarding corporate income tax
– According to point 2.6, clause 2, Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015, it is clearly stipulated:
“d) Salaries and wages of private enterprise owners, owners of single-member limited liability companies (LLCs) owned by an individual; remuneration paid to founders, members of the board of members, and board of directors who do not directly participate in the management of production and business.”
Therefore, the salary and wages of the director of a single-member limited liability company (owned by an individual) are not deductible expenses when calculating corporate income tax.
2. Regarding personal income tax
Follow point 6 Article 11 of Circular 92/2015/TT-BTCThe regulations are as follows:
Private enterprises and limited liability companies with a single owner are not subject to personal income tax on capital investment.
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3. Solution
Determining whether salary and wage expenses for the Director of a single-member limited liability company are deductible when calculating corporate income tax, or subject to personal income tax, is crucial. This is because these expenses are significant and frequently incurred by businesses. Failure to comply with tax regulations can result in substantial penalties or back taxes.
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