On May 13, 2021, the Tax Department of Binh Duong province issued Official Letter No. 8226/CTBDU-TTHT guiding the declaration and payment of PIT as follows:
- For the cost of isolation: the expenses of Covid-19 epidemic quarantine and prevention for foreign expatriates entering Vietnam would be included in the individuals’ taxable income from the employment salaries and wages.
- For expenses for visa and temporary residence cards: in case the company pays the cost of making temporary residence cards and visa for foreign expatriate, this income shall be included in the individuals’ taxable income.
- For expenses of employee welfare such as funeral, wedding: If the these expenses are consistent with the determination of corporate taxable income, it will not be included in the individuals’ taxable income.
- For the PIT paid by the Company on behalf of the employee: In the case in the labor contract or the collective labor agreement between the Company and the employee that the employee receives Net salary, the Company must gross up into the individuals’ taxable income.
