On June 19th 2018, Hanoi Department of Tax released the Official Dispatch No 41659/CT-TTHT.
Whereby, in case Enterprise stipulates the direct payment of holiday allowance to its laborers as welfare expense that meets all of conditions regulated in Article 4 of Circular No. 96/2015/TT-BTC. If the total of holiday allowance and other welfare expenses of the Enterprise does not exceed the practical average 1 month’s salary in the tax year, this expenditure shall be recorded as deductible expenses when determining CIT assessable income.
If the holiday allowance paid by the Enterprise to its laborers bears the name of the individuals, it shall be calculated into the Personal Income Tax of labors under regulation in Circular No. 111/2013/TT-BTC.
