Official Dispatch No. 49303/CTHN-TTHT dated October 12th 2022 of the Hanoi Tax Department guiding the VAT and CIT policy for visa expenses for foreign employees
Regarding CIT: In case the Company pays for support services for foreign laborers to extend or renew their visas to qualify for working in Vietnam, and if this payment is of a welfare nature for employees, it shall be included in the deductible cost when determining the taxable income of the enterprise if the total welfare nature expenditure does not exceed 01 month of average salary in the tax year of the enterprise specified in Clause 4, Article 3 of Circular 25/2018/TT-BTC and meets the conditions specified in Article 4 of Circular 96/2015/TT-BTC dated June 22, 2015.
Regarding VAT: In case the Company incurs input VAT to serve the production and business of goods and services subject to VAT, it is entitled to deduct all if meeting the conditions for input VAT deduction specified in Clause 10, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015 and complying with the principle of input VAT deduction specified in Article 14 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.
