Official letter No. 31557/CTHN-TTHT dated August 13th 2021 of Hanoi Tax Department on tax policy related to expenses for employees during the Covid-19 pandemic
1. To determine deductible expense for CIT taxable income:
+ For quarantine expense for employees: In cased the company signed the labor contract in which stated rental house expense paid by the company, then the quarantine expense paid to quarantine facility is considered as deductible expense when determine CIT taxable income if the company has fully invoice, document and payment comply with regulation
+ For Covid-19 testing, vaccination expense for employees: are considered as welfare amount paid directly to employees, if these amount is carried out according to point 2.30 clause 2 article 6 Circular 78/2014/TT-BTC dated June 18th 2014 of MOF ( amended and supplemented as Article 4, circular 96/2015/TT-BTC dated June 22nd 2015 of MOF) and total welfare amount is not exceeding 1 month average actually paid salary in the tax year is considered as deductible expense when determine CIT taxable income if the company has fully invoice, document and payment comply with regulation
2. To determine PIT taxable income:
In Covid-19 pandemic, in cased the company has issued expense for prevent and fight against Covid-19 comply with regulation, if these expense stated clearly name of beneficiary then it will be included into PIT taxable income according to regulation as item 3.2 Clause 2, Article 2, Circular 111/2013/TT-BTC
