Official Letter No. 05/CTBNI-TTHT dated January 4, 2022 of the Tax Department of Bac Ninh province guiding the payment of unpaid leave days to employees.
According to the Tax Department of Bac Ninh province, in case the Company pays the salary of the annual leave days to employees who are still working at the Company, then:
+ Regarding CIT: this is an expense that is not consistent with the provisions of Clause 3, Article 113 of the Labor Code 2019 (the payment of unpaid days in the year is only prescribed in case the employee quits or loses his/her job). work) and has NOT fully met the regulations for salaries and bonuses for employees to be included in deductible expenses when calculating CIT.
+ Regarding PIT: this is the taxable income of the employee.