Official Dispatch No.4387/CTHPH-TTHT dated December 9, 2022 of the Hai Phong City Tax Department on tax policy for experts’ return home airfares upon termination of labor contracts
Hai Phong City Tax Department has guided, in case the Company pays the return airfare for foreign experts when terminating the labor contract, not the case of return home once a year:
- Personal income tax: this is a non-cash benefit that employees are entitled to, so this expense is included in the employee’s personal income taxable income.
- Corporate income tax: The Company is included in the deductible expenses when calculating corporate income tax if the above expenses are specified in the labor contract, collective labor agreement, financial regulations of the Company and meet the conditions of invoices and payment vouchers as prescribed.
