Pursuant to Article 10 of Decree No. 320/2025/ND-CP, the provisions are as follows:
Article 10. Non-deductible expenses in determining taxable income
Non-deductible expenses in determining taxable income shall comply with Clause 2, Article 9 of the Law on Corporate Income Tax, specifically as follows:
[…]
4. The portion of expenses exceeding the prescribed limits for the following items:
[…]
(dd) The portion exceeding VND 5 million per month per employee for contributions to supplementary pension insurance in accordance with the Law on Social Insurance or funds of a social welfare nature, premiums for voluntary pension insurance, and life insurance for employees.
The portion exceeding the statutory limits prescribed under laws on social insurance and health insurance for contributions to social welfare funds (including compulsory social insurance and compulsory supplementary pension insurance), the Health Insurance Fund, and the Unemployment Insurance Fund for employees, specifically:
- (dd1) Contributions to supplementary pension insurance under the Law on Social Insurance or funds of a social welfare nature, premiums for voluntary pension insurance, and life insurance for employees shall be treated as deductible expenses, provided that in addition to not exceeding the prescribed limit, the eligibility conditions and benefit levels are clearly stipulated in one of the following documents:
- Labor contracts;
- Collective labor agreements;
- Financial regulations of the company, corporation, or group;
- Bonus policies issued by the Chairman of the Board of Directors, General Director, or Director in accordance with the financial regulations of the company, corporation, or group.
- (dd2) Enterprises shall not be allowed to treat as deductible expenses any contributions to supplementary pension insurance under the Law on Social Insurance or funds of a social welfare nature, or premiums for voluntary pension insurance and life insurance for employees, if the enterprise fails to fully fulfill its compulsory insurance obligations for employees (including cases of outstanding compulsory insurance payments).
[…]
Conclusion
Accordingly, if an enterprise incurs expenses for purchasing life insurance for its employees, such expenses shall be deductible for CIT purposes only if all of the following conditions are simultaneously satisfied:
Condition 1: Expense cap
The expense must not exceed VND 5 million per month per employee:
- If the expense does not exceed VND 5 million/month/employee: the full amount shall be deductible.
- If the expense exceeds VND 5 million/month/employee: only up to VND 5 million/month/employee shall be deductible; the excess portion shall be disallowed for CIT purposes.
Condition 2: Supporting documentation
The eligibility conditions and benefit levels must be clearly specified in one of the following documents:
- Labor contract;
- Collective labor agreement;
- Financial regulations of the company, corporation, or group;
- Bonus policy issued by the Chairman of the Board, General Director, or Director in accordance with the entity’s financial regulations.
Condition 3: Compliance with compulsory insurance obligations
The enterprise must fully comply with all compulsory insurance obligations for its employees.
Note:
An enterprise shall not be allowed to treat life insurance expenses for employees as deductible if it fails to fully meet its compulsory insurance obligations (including cases where compulsory insurance contributions remain unpaid or in arrears).
📞 CONTACT LEGAL CONSULTANT:
TLA Law is a leading law firm with a team of highly experienced lawyers specializing in criminal, civil, corporate, marriage and family law, and more. We are committed to providing comprehensive legal support and answering all your legal questions. If you have any further questions, please do not hesitate to contact us.
1. Lawyer Vu Thi Phuong Thanh, Ha Noi Bar Association
Email: vtpthanh@tlalaw.vn
2. Lawyer Tran My Le, Ha Noi Bar Association
Email: tmle@tlalaw.vn
Vo Thi Van Khanh