On October 11th, 2021, Hung Yen Tax department issued the Official letter No. 4818/CTHYE-TTHT, accordingly:
In case the Company pays for unpaid annual leave in accordance with the provisions of the Labor Code and pays as the overtime if this payment is recorded in one of the dossiers specified in Item b, Point 2.6 of Circular 78/2014/TT-BTC, the Company is entitled to deductible expenses when calculating CIT if it meets the provisions of Article 4 of Circular 96/2015/TT-BTC dated June 22nd, 2015, of the Ministry of Finance. The income that the company pays for unpaid annual leave is higher than the payment for an ordinary working day as prescribed by the Labor Code are exempt from personal income tax under the guidance at Point i, Clause 1, Article 3 of Circular No. 111/2013/TT-BTC.
