On 4 June 2026, the Tay Ninh Tax Department issued Official Letter No. 5389/TNI-QLDN1 providing guidance on overtime work notifications, as well as the PIT and CIT treatment of overtime salary payments
According to the guidance, where a company organizes overtime work, the following key points should be noted:
– Notification Requirements: For companies operating in the export garment processing sector, a notification must be submitted to the competent authority when organizing overtime work exceeding 200 hours and up to 300 hours per employee per year, in accordance with Article 62 of Government Decree No. 145/2020/ND-CP dated 14 May 2020.
– Personal Income Tax (“PIT”): Payments relating to night-shift work and overtime work that are made in accordance with the prevailing labour regulations and arise during the 2026 PIT assessment period (i.e., from 1 January 2026 to 31 December 2026) are eligible for PIT exemption pursuant to Article 4 of the 2025 Law on Personal Income Tax.
– Corporate Income Tax (“CIT”): Where overtime hours exceed the statutory limits prescribed under labour legislation, the salary expenses attributable to the excess portion will not be deductible for CIT purposes when determining taxable income. ccordingly, upon the annual CIT finalization, the non-deductible portion should be reported under Item B4 – “Non-deductible Expenses” on the CIT Finalization Return (Form No. 03/TNDN).
For detailed information, please refer to the link.
