blue-check Issues relating to expenses of Covid-19 testing, quarantine

Official letter No. 31557/CTHN-TTHT dated August 13th, 2021 of the Department of Taxation of Ha Noi city regarding determination of expenses involved in Covid-19 prevention and control
Posted: 25/8/2021 9:25:10 AM | Latest updated: 26/8/2021 2:41:50 PM (GMT+7) | LuatVietnam: 5277 | Vietlaw: 524

According to this Official letter, in case a company agrees to pay house rents on behalf of its employees in labor contracts, it may account expenses involved in Covid-19 quarantine paid for its employees. However, these expenses must have adequate invoices, payment documents.

With regard to expenses of Covid-19 testing, vaccination paid for employees, they are considered to be welfare expenditures directly paid to the employees; if these expenses meet the regulations at point 2.30 Clause 2 Article 6 of Circular No. 78/2014/TT-BTCstatus2 (amended, supplemented at Article 4 Circular No. 96/2015/TT-BTC), they shall be also included in deductible expenses upon determination EIT-liable income.

Notably, if expenses in relation to Covid-19 prevention and control have documents specifying names of recipients, it is required to withhold personal income tax according to dd.3.2 clause 2 Article 2 of Circular No. 111/2013/TT-BTCstatus2 .

Ms Phuong Thao (
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Published Vietlaw's Newsletter No. 524
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Reasonable expenses