VietlawOnline

blue-check Issues relating to Covid-19 quarantine-related expenses

Official letter No. 32040/CTHN-TTHT dated August 19th, 2021 of the Department of Taxation of Ha Noi city regarding determination of incomes liable to personal income tax (PIT) with regard to expenses of Covid-19 prevention and control
Posted: 20/8/2021 7:57:21 AM | Latest updated: 26/8/2021 2:55:21 PM (GMT+7) | LuatVietnam: 5276 | Vietlaw: 524
VietlawOnline

Relating to the accounting of Covid -19 quarantine-related expenses paid on behalf of foreign experts, the Department of Taxation of Ha Noi city assumes that it is required to base on the General Department of Taxation’s guidelines at Official letter No. 5032/TCT-CS dated November 26th, 2020.

According to Official letter No. 5032/TCT-CS, Covid-19 quarantine-related expenses at hotels (expenses of eating, accommodation, living) paid for foreign experts shall be included in deductible expenses upon determination of incomes liable to enterprise income tax (EIT) if the labor contracts clearly stating that enterprises will pay house rents on behalf of their employees and there are adequate invoices, payment documents.

Regarding expenses of Covid-19 testing, they must be paid by the welfare fund and accounted according to regulations provided for the welfare fund.

Notably, upon making payment for the amounts payable by foreign experts, such amounts must be induced in taxable income for calculation of PIT because they are considered to be “other benefits” received by such foreign experts.

Ms Phuong Thao (VietlawOnline.com)
Please tag VietlawOnline.com when reposting this article

Related documents

Penalty document

Unknown

Information

Effective Date Unknown
ExpiredDate Unknown
Published Vietlaw's Newsletter No. 524

Files attachment

enflag pdficon CV32040_19082021CTHN[VLO].pdf

Timeline

No data

Foreign laborers

blue-check Regarding PIT incurred by a foreigner working in Vietnam under 183 days
blue-check Regarding the first tax period of a foreigner
blue-check Regarding PIT incurred by foreign employees who are seconded to Vietnam for market survey
blue-check Issues relating to PIT incurred by foreigners
blue-check Regarding bases determination of costs for hiring foreign consultants
blue-check Regarding tax on incomes from provision of online services of foreigners
blue-check How to declare PIT in Vietnam by foreigners
blue-check Regarding application for lump-sum social insurance benefits for foreign employees
blue-check Exchange rate used for conversion of salary in foreign currency applicable in the first 6 months of 2022: VND 23,134/USD
blue-check From 2022: Social insurance contribution rate of foreign employee shall be 30%
blue-check Regarding PIT incurred by a foreign worker
blue-check Regarding PIT on lump-sum moving allowances given to foreign workers
blue-check Regarding form of PIT declaration of foreign workers
blue-check Regarding PIT on expenses of applying for visas paid on behalf of foreign workers
blue-check Regarding PIT on expenses of applying for visas paid on behalf of foreign workers
blue-check Regarding PIT declaration, accounting made on behalf of a Director General of a branch cum Chief of a Representative office
blue-check Regarding application of “vaccine passport" to foreign experts
blue-check Bases for calculation, declaration and finalization of PIT incurred by foreign workers
blue-check [Ha Noi] Foreign CEO may enter to work during Covid-19 pandemic
blue-check Regarding PIT accounting made by foreigners