{"id":2739,"date":"2025-12-29T23:48:32","date_gmt":"2025-12-30T06:48:32","guid":{"rendered":"https:\/\/giaodichlienket.man.net.vn\/?p=2739"},"modified":"2025-12-29T23:48:32","modified_gmt":"2025-12-30T06:48:32","slug":"khoan-chi-phi-lai-vay-khong-duoc-tru","status":"publish","type":"post","link":"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/","title":{"rendered":"Non-deductible interest expense and the risk of tax assessment during tax settlement."},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Amidst stricter tax audits of related-party transactions, non-deductible interest expenses are becoming a serious tax risk for many businesses, especially FDI companies and multinational corporations. A single error in applying the 30% EBITDA limitation regulation is all it takes. <\/span><a href=\"https:\/\/thuvienphapluat.vn\/van-ban\/Doanh-nghiep\/Nghi-dinh-132-2020-ND-CP-quy-dinh-quan-ly-thue-doi-voi-doanh-nghiep-co-giao-dich-lien-ket-452218.aspx\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Decree 132\/2020\/ND-CP<\/span><\/a><span style=\"font-weight: 400;\"> This can also lead to significant tax arrears, prolonged late payment penalties, and tax assessments. This article provides an in-depth, updated 2026 look at the nature, determination, calculation formulas, practical examples, and optimal strategies to help businesses proactively control interest expense and comply with current tax regulations.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Khoan_chi_phi_lai_vay_khong_duoc_tru_la_gi\" >What are non-deductible interest expenses?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Nhung_diem_doanh_nghiep_can_luu_y_ve_khoan_chi_phi_lai_vay_khong_duoc_tru\" >Key points businesses need to be aware of regarding non-deductible interest expenses.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Ban_chat_cua_viec_khong_che_chi_phi_lai_vay\" >The nature of controlling interest expense<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Cong_thuc_tinh_va_phan_tich_chuyen_sau_ve_EBITDA\" >EBITDA Calculation Formula and In-depth Analysis<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Cong_thuc_xac_dinh_muc_tran_Cap\" >Formula for determining the cap (Cap) level<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#EBITDA_am_thi_chi_phi_lai_vay_co_duoc_tru_khong\" >If EBITDA is negative, can interest expense be deducted?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Co_che_chuyen_chi_phi_lai_vay_sang_ky_sau\" >Mechanism for carrying forward interest expense to the next period.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Thoi_gian_bao_luu_va_chuyen_tiep\" >Retention and forwarding periods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Dieu_kien_va_thu_tu_chuyen\" >Conditions and order of transfer<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Rui_ro_phap_ly_va_cac_muc_phat_vi_pham\" >Legal risks and penalties for violations<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Rui_ro_an_dinh_thue_Tax_Assessment\" >Tax Assessment Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Cac_muc_phat_cu_the\" >Specific penalties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Rui_ro_ve_uy_tin_va_xep_hang_doanh_nghiep\" >Risks to business reputation and rating.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Case_Study_thuc_chien_Phan_bo_chi_phi_qua_nhieu_nam\" >Practical Case Study: Cost Allocation Over Multiple Years<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Ket_luan\" >Conclude<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-khong-duoc-tru\/#Thong_tin_MAN_%E2%80%93_Master_Accountant_Network\" >Information from MAN \u2013 Master Accountant Network<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Khoan_chi_phi_lai_vay_khong_duoc_tru_la_gi\"><\/span><b>What are non-deductible interest expenses?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Non-deductible interest expense refers to the portion of interest expense that a business is not allowed to include as a deductible expense when determining taxable corporate income, due to exceeding the 30% EBITDA limit as stipulated in the regulations on related-party transactions, primarily applicable to businesses with related-party transactions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to Decree 132\/2020\/ND-CP, interest expenses are not deductible when:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Businesses that have related-party transactions (borrowing capital from related parties or loans guaranteed by related parties);<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Net interest expense for the period exceeded 30% EBITDA.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Nhung_diem_doanh_nghiep_can_luu_y_ve_khoan_chi_phi_lai_vay_khong_duoc_tru\"><\/span><b>Key points businesses need to be aware of regarding non-deductible interest expenses.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_2743\" aria-describedby=\"caption-attachment-2743\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2743\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Khoan-chi-phi-lai-vay-khong-duoc-tru-voi-nhung-diem-can-luu-y.jpg\" alt=\"Kho\u1ea3n chi ph\u00ed l\u00e3i vay kh\u00f4ng \u0111\u01b0\u1ee3c tr\u1eeb v\u1edbi nh\u1eefng \u0111i\u1ec3m c\u1ea7n l\u01b0u \u00fd\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Khoan-chi-phi-lai-vay-khong-duoc-tru-voi-nhung-diem-can-luu-y.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Khoan-chi-phi-lai-vay-khong-duoc-tru-voi-nhung-diem-can-luu-y-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Khoan-chi-phi-lai-vay-khong-duoc-tru-voi-nhung-diem-can-luu-y-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Khoan-chi-phi-lai-vay-khong-duoc-tru-voi-nhung-diem-can-luu-y-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Khoan-chi-phi-lai-vay-khong-duoc-tru-voi-nhung-diem-can-luu-y-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2743\" class=\"wp-caption-text\">Interest expenses are not deductible, with some points to note.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">To avoid the risk of having expenses disallowed and taxes levied during tax settlement, businesses need to pay special attention to the following key points:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Interest expenses that are not deductible are not permanently lost but are carried forward for up to five years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If EBITDA is zero or negative, all interest expenses incurred during the period are disallowed when calculating corporate income tax.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This regulation aims to combat transfer pricing and thin capitalization, ensuring that tax obligations are determined based on their true economic nature.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">To properly apply and mitigate tax risks, businesses need to delve deeper into the nature of the interest expense control mechanism and the reasons why tax authorities are particularly tightening these regulations.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ban_chat_cua_viec_khong_che_chi_phi_lai_vay\"><\/span><b>The nature of controlling interest expense<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Why are tax authorities particularly interested in interest expenses? The answer lies in the term &quot;thin capitalization.&quot; Many multinational corporations use financial leverage by lending to subsidiaries at high interest rates or with excessively high debt-to-equity ratios in order to shift profits from high-tax areas to low-tax areas.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To prevent this situation, Vietnam has incorporated the recommendations of the OECD (Basalt Erosion and Profit Shifting Programme \u2013 BEPS) into its domestic laws. Regulations on non-deductible interest expenses in related-party transactions were introduced to ensure fairness and transparency in tax obligations.<\/span><\/p>\n<p><b>See details:<\/b> <a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/chi-phi-lai-vay-bi-khong-che-quy-dinh-moi-nhat-2025\/\"><span style=\"font-weight: 400;\">The latest regulations impose limits on interest expense deductions.<\/span><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cong_thuc_tinh_va_phan_tich_chuyen_sau_ve_EBITDA\"><\/span><b>EBITDA Calculation Formula and In-depth Analysis<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">This is the most important part of calculating deductible and non-deductible interest expense that businesses need to pay attention to.\u00a0<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Cong_thuc_xac_dinh_muc_tran_Cap\"><\/span><b>Formula for determining the cap (Cap) level<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><a href=\"https:\/\/giaodichlienket.man.net.vn\/en\/khoan-chi-phi-lai-vay-duoc-tru\/\"><span style=\"font-weight: 400;\">Interest expense is deductible.<\/span><\/a><span style=\"font-weight: 400;\"> The maximum for the period is determined as follows:<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Ceiling = 30% EBITDA<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">In this context, EBITDA for tax purposes differs from accounting EBITDA:<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">Taxable EBITDA = Net operating profit + Net interest expense + Depreciation expense<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> This net profit figure must exclude tax-exempt income (such as dividends) to accurately reflect the company&#039;s core profitability.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"EBITDA_am_thi_chi_phi_lai_vay_co_duoc_tru_khong\"><\/span><b>If EBITDA is negative, can interest expense be deducted?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A question that MAN \u2013 Master Accountant Network frequently receives is, &quot;If EBITDA is negative, can interest expense be deducted?&quot; In reality, according to current regulations, when EBITDA is not positive, the 30% ceiling will no longer allow for interest expense deductions in that year. However, we should consider this a &quot;provisional expense&quot; because businesses can retain and carry forward this interest expense to years with more favorable business conditions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consequence: If a business incurs significant losses or depreciation or interest expenses are so high that they result in negative EBITDA, all interest expenses not deductible from related-party transactions for that year will need to be tracked separately and carried forward to the next period.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, even with the correct formula and accurate EBITDA determination, businesses cannot always include the entire interest expense as a deductible expense in the period. In cases exceeding the permitted threshold, the mechanism for carrying forward interest expense to the next period, as stipulated in Decree 132\/2020\/ND-CP, is a crucial &quot;lifeline&quot; that businesses need to understand.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Co_che_chuyen_chi_phi_lai_vay_sang_ky_sau\"><\/span><b>Mechanism for carrying forward interest expense to the next period.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_2742\" aria-describedby=\"caption-attachment-2742\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2742\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-che-chuyen-chi-phi-lai-vay-sang-ky-sau.jpg\" alt=\"C\u01a1 ch\u1ebf chuy\u1ec3n chi ph\u00ed l\u00e3i vay sang k\u1ef3 sau\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-che-chuyen-chi-phi-lai-vay-sang-ky-sau.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-che-chuyen-chi-phi-lai-vay-sang-ky-sau-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-che-chuyen-chi-phi-lai-vay-sang-ky-sau-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-che-chuyen-chi-phi-lai-vay-sang-ky-sau-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Co-che-chuyen-chi-phi-lai-vay-sang-ky-sau-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2742\" class=\"wp-caption-text\">Mechanism for carrying forward interest expense to the next period.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Businesses should not be overly concerned when interest expenses are disallowed during the period due to exceeding the 30% EBITDA threshold. In fact, Decree 132\/2020\/ND-CP has designed a flexible expense carry-forward mechanism, allowing businesses to reallocate the non-deductible interest expense to subsequent tax periods. This mechanism helps reduce financial pressure in the medium and long term, provided that businesses understand and comply with the following principles:<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Thoi_gian_bao_luu_va_chuyen_tiep\"><\/span><b>Retention and forwarding periods<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Tax laws clearly stipulate the retention period and transitional principles for non-deductible interest expense; businesses should pay particular attention to the following milestones:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The portion of interest expense that is not deductible will be included in the taxable expenses of subsequent tax periods when determining corporate income tax.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The period for carrying forward interest expense calculations continuously shall not exceed <\/span><b>5 years<\/b><span style=\"font-weight: 400;\"> From the year following the year in which the interest expense is incurred, it will not be deductible. After this period, if the full amount has not been carried forward, the remaining expense will be permanently written off.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Dieu_kien_va_thu_tu_chuyen\"><\/span><b>Conditions and order of transfer<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In order for non-deductible interest expenses to be carried forward to subsequent tax periods in accordance with regulations and accepted by the tax authorities, businesses need to meet all the conditions and follow the correct carrying order as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Priority order: Businesses must carry forward the interest expense from older years first (FIFO principle \u2013 First In, First Out).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sufficient condition: In the year of receiving the transfer, the total interest expense (including interest incurred in that year plus interest carried over from previous years) must not exceed the current year&#039;s EBITDA ceiling.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Declaration procedure: This interest expense must be tracked in detail and fully declared on Form No. 01\/GDLK attached to the corporate income tax return.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This mechanism is particularly beneficial for businesses in the investment and expansion phase when EBITDA is low but interest expenses are substantial. As the business stabilizes and EBITDA grows, the previously &quot;provisional&quot; interest payments will be gradually deducted, reducing future tax liabilities.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Rui_ro_phap_ly_va_cac_muc_phat_vi_pham\"><\/span><b>Legal risks and penalties for violations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_2741\" aria-describedby=\"caption-attachment-2741\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2741\" src=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Rui-ro-phap-ly-lien-quan-khoan-chi-phi-lai-vay-khong-duoc-tru.jpg\" alt=\"R\u1ee7i ro ph\u00e1p l\u00fd li\u00ean quan kho\u1ea3n chi ph\u00ed l\u00e3i vay kh\u00f4ng \u0111\u01b0\u1ee3c tr\u1eeb\" width=\"1200\" height=\"800\" srcset=\"https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Rui-ro-phap-ly-lien-quan-khoan-chi-phi-lai-vay-khong-duoc-tru.jpg 1200w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Rui-ro-phap-ly-lien-quan-khoan-chi-phi-lai-vay-khong-duoc-tru-300x200.jpg 300w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Rui-ro-phap-ly-lien-quan-khoan-chi-phi-lai-vay-khong-duoc-tru-1024x683.jpg 1024w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Rui-ro-phap-ly-lien-quan-khoan-chi-phi-lai-vay-khong-duoc-tru-768x512.jpg 768w, https:\/\/giaodichlienket.man.net.vn\/wp-content\/uploads\/2025\/12\/Rui-ro-phap-ly-lien-quan-khoan-chi-phi-lai-vay-khong-duoc-tru-18x12.jpg 18w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-2741\" class=\"wp-caption-text\">Legal risks associated with non-deductible interest expense.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Errors in declaring non-deductible interest expenses in related-party transactions not only result in the disallowance of expenses but also lead to administrative penalties under Decree 125\/2020\/ND-CP.<\/span><\/p>\n<h4><span class=\"ez-toc-section\" id=\"Rui_ro_an_dinh_thue_Tax_Assessment\"><\/span><b>Tax Assessment Risk<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This is the most dangerous risk. If a business fails to declare or inadequately declares related-party transactions, the tax authorities have the right to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loan interest rates are set based on industry data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Determine the net profit margin for the business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consequence: Businesses lose the right to determine the amount of tax they have to pay and are often assessed at an unfavorable, high rate.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Cac_muc_phat_cu_the\"><\/span><b>Specific penalties<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Based on tax administration regulations, common penalties include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Penalties for incorrect declarations resulting in underpayment of taxes: Penalty under Article 20% for the amount of tax underpaid or the amount of tax exempted, reduced, or refunded in excess of the regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Penalty for late payment of taxes: Calculated at a rate of 0.031 TP3T\/day on the amount of tax overdue.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Penalties for violations of tax return filing deadlines: From 2 million to 25 million VND, depending on the length of the delay.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Penalties for violating regulations on information provision: From 2 million to 5 million VND if information and documents regarding related-party transactions are not provided or are provided incompletely as requested.<\/span><\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Rui_ro_ve_uy_tin_va_xep_hang_doanh_nghiep\"><\/span><b>Risks to business reputation and rating.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Businesses that are penalized for tax violations will have their compliance rating lowered by the tax authorities, leading to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Inspections and audits are becoming more frequent.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It becomes more difficult to obtain tax refunds or investment tax incentives.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In reality, the aforementioned legal risks and penalties exist not only in written regulations but have also arisen specifically during tax audits and inspections. To illustrate how businesses can proactively manage and allocate interest expenses over several years to minimize tax impact, the following section presents a practical case study based on a typical illustrative situation.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Case_Study_thuc_chien_Phan_bo_chi_phi_qua_nhieu_nam\"><\/span><b>Practical Case Study: Cost Allocation Over Multiple Years<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To help businesses easily understand how to identify, track, and transfer non-deductible interest expense between tax periods according to Decree 132\/2020\/ND-CP, the table below illustrates with specific data when a business incurs interest expense exceeding the ceiling in the first year and utilizes the 30% EBITDA margin in the following year to offset the deduction. The data in the table is for illustrative purposes only and does not reflect the data of any specific business.<\/span><\/p>\n<table style=\"width: 100%; border-color: #000000;\" border=\"1\" cellspacing=\"2\" cellpadding=\"12\">\n<caption><b>Board:<\/b><span style=\"font-weight: 400;\"> The interest expense that is not deductible can be allocated over several years.<\/span><\/caption>\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 26.0521%;\"><b>Content<\/b><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><b>2024 (Interest rates exceeding the ceiling)<\/b><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><b>2025 (offset deduction)<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">EBITDA\u00a0<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">100 billion VND<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">200 billion VND<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Net interest expense for the year<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">50 billion VND\u00a0<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">30 billion VND<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Interest expense ceiling<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">30 billion VND<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">60 billion VND<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Interest expense is deductible during the year.<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">30 billion VND<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">30 billion VND (interest accrued in 2024)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Interest expense is not deductible.\u00a0<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">20 billion VND<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">0<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Deductions based on the ceiling<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">Do not have<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">30 billion VND<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Interest expense carried forward from the previous year.<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">20 billion VND (from 2024)<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%;\"><span style=\"font-weight: 400;\">Total interest expense deductible during the year<\/span><\/td>\n<td style=\"text-align: center; width: 34.2685%;\"><span style=\"font-weight: 400;\">30 billion VND<\/span><\/td>\n<td style=\"text-align: center; width: 38.8778%;\"><span style=\"font-weight: 400;\">50 billion VND<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 26.0521%; text-align: left;\"><span style=\"font-weight: 400;\">Result<\/span><\/td>\n<td style=\"width: 34.2685%; text-align: left;\"><span style=\"font-weight: 400;\">Interest expense incurred is disallowed and carried over to the next period.<\/span><\/td>\n<td style=\"width: 38.8778%; text-align: left;\"><span style=\"font-weight: 400;\">The company deducts the entire amount of disallowed interest expense from the previous year.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Thanks to increased EBITDA and reduced interest expenses, the company has been able to take advantage of the 30% EBITDA &quot;room&quot; in 2025 to <\/span><b>Recover all non-deductible interest expense for the year 2024.<\/b><span style=\"font-weight: 400;\">, in accordance with the cost transfer mechanism stipulated in Decree 132\/2020\/ND-CP.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is clear that non-deductible interest expense is not simply a disallowed expense, but a strategic financial and tax issue for businesses with related-party transactions. If correctly identified, accurately calculated, and systematically tracked over each period, businesses can significantly reduce the risk of tax arrears and effectively utilize the expense carryforward mechanism under Decree 132\/2020\/ND-CP.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the context of increasing tax audits and the application of in-depth data analysis, proactively reviewing capital structure, forecasting EBITDA, and standardizing related-party transaction records are key factors in helping businesses legally protect their tax interests. If your business is facing difficulties in identifying, allocating, or documenting interest expense, don&#039;t wait until an audit; discuss this early with a specialized tax and financial consulting firm like MAN \u2013 Master Accountant Network to develop a suitable solution today.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Thong_tin_MAN_%E2%80%93_Master_Accountant_Network\"><\/span><b>Information from MAN \u2013 Master Accountant Network<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Mobile\/Zalo: 0903 963 163 \u2013 0903 428 622<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Email: man@man.net.vn<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Content production by: Mr. <\/span><a href=\"https:\/\/man.net.vn\/le-hoang-tuyen\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">Le Hoang Tuyen<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 Founder and CEO of MAN \u2013 Master Accountant Network, CPA Vietnam with over 30 years of experience in accounting, auditing, and financial consulting.<\/span><\/p>\n<p style=\"text-align: right;\"><b><i>Editorial Board of MAN \u2013 Master Accountant Network<\/i><\/b><\/p>","protected":false},"excerpt":{"rendered":"<p>Trong b\u1ed1i c\u1ea3nh c\u01a1 quan thu\u1ebf si\u1ebft ch\u1eb7t thanh tra giao d\u1ecbch li\u00ean k\u1ebft, kho\u1ea3n chi ph\u00ed l\u00e3i vay kh\u00f4ng \u0111\u01b0\u1ee3c tr\u1eeb \u0111ang tr\u1edf th\u00e0nh r\u1ee7i ro thu\u1ebf nghi\u00eam tr\u1ecdng \u0111\u1ed1i v\u1edbi nhi\u1ec1u doanh nghi\u1ec7p, \u0111\u1eb7c bi\u1ec7t l\u00e0 doanh nghi\u1ec7p FDI v\u00e0 t\u1eadp \u0111o\u00e0n \u0111a qu\u1ed1c gia. Ch\u1ec9 m\u1ed9t sai s\u00f3t trong vi\u1ec7c \u00e1p d\u1ee5ng [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":2740,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/comments?post=2739"}],"version-history":[{"count":1,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2739\/revisions"}],"predecessor-version":[{"id":2744,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/posts\/2739\/revisions\/2744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media\/2740"}],"wp:attachment":[{"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/media?parent=2739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/categories?post=2739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/giaodichlienket.man.net.vn\/en\/wp-json\/wp\/v2\/tags?post=2739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}