On June 29th, 2021, Bac Ninh Tax Department issued Official Letter No. 1883/CTHNI-TTHT, thereby:
If the company at the request of the local government to ensure production activities safety in the implementation of applying Covid-19 prevention measures, the company must pay for expenses such as: accommodation for its employees, Covid testing expenses for employees at work, periodically and before the employees return to their localities, allowances for employees to stay at the company, the determination of deductible expenses when calculating CIT and the determination of PIT shall be carried out as follows:
- Deductible expenses when calculating CIT: The above-mentioned expenses of the company are welfare expenses for employees in nature if there are sufficient invoices, records for non-cash payments, and at the same time the total of these above and other welfare expenses do not exceed one month’s actual average salary in a tax year of the company shall be deductible when calculating CIT.
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- Regarding the determination of PIT taxable income: If the expenditure clearly states the name of the beneficiary, this expenditure shall be included in the taxable income; If the expenditure does not specify the name of the beneficiary individually but instead is collectively shared for a group of employees, then it is not included in the taxable PIT income.
Particularly, the allowance paid for employees stay for working at the company is another welfare expense that the employee is entitled to enjoy which must be included in the PIT taxable income.
