On June 23, 2016, General Department of Taxation issued Official Letter No. 2801/TCT-TNCN regulates PIT policy for lump-sum moving allowances. Accordingly, lump-sum moving allowances are excluded from labor’s salary when calculating PIT such as: related cost of transporting furniture (furniture shipping cost, furniture transporting insurance, overweight baggage charges); travel expenses of employees and their wife/husband, children; cost of purchasing replacement belongings; cash allowances. These expenses are paid only once and should be specified in policy of enterprises which transfers or receives employees, is represented on appointment decision; labor contract or collective labor agreement and must have fully supportive documents.
