Công văn 8773/CT-TTHT năm 2014 về chính sách thuế thu nhập cá nhân do Cục thuế thành phố Hồ Chí Minh ban hành

In reply to your official correspondence No. 09/2014 dated September 29, 2014 about tax policies, the City’s Tax Department would like to give you opinions stated hereunder:

Pursuant to clause 2 of Article 2 in the Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, providing instructions about personal income tax (PIT), income earned from salaries and wages shall be defined as follows:

“Income earned from salaries and wages means a monetary amount that an employee receives from an employer, including:

a) Salaries, wages and other amounts in the nature of salaries or wages, all of which exist in the cash or non-cash form.

b) Allowances and/or benefits, except the followings:

…

b.11. In particular, lump-sum moving allowances for foreigners that reside in Vietnam and Vietnamese people working overseas shall be deducted in accordance with the labor contract or collective bargaining agreement.  

dd) Other benefits in cash or not in cash apart from wages paid to the taxpayer by the employer in any shape or form:

...”

Pursuant to clause 1 of Article 6 in the Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance, providing instructions about corporate income tax (CIT):

“Except expenses specified in Clause 2 of this Article, enterprises may deduct all expenses that fully satisfy the following conditions:

a) Actual expenses arising in relation to production and business activities of enterprises;

b) Expenses with adequate lawful invoices and documents as required by law.

c) For expenses for purchase of goods or services with invoices valued at VND 20 million or more (VAT-inclusive prices) per each, there must be non-cash payment documents.

…”

If you pay foreign workers residing in Vietnam lump-sum moving benefits in cash of which specific amounts are prescribed in labor contracts or collective bargaining agreements, these payments will be deducted from PIT-taxable income of these workers and will be accepted as deductible expenses when calculating your CIT.

As for costs associated with transport of personal stuff of your employees that you have to pay service providers, as these costs are not related to your business and manufacturing activities, they will not be charged into deductible expenses upon calculating CIT but will be deemed as amounts subject to taxes on personal income earned from salaries and wages of employees when calculating PIT.  

This document is for your information and the City’s Tax Department expects you to comply with regulations laid down in legislative documents mentioned herein.

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This document is handled by Dữ Liệu Pháp Luật . Document reference purposes only. Any comments, please send to email: [email protected]