Determination of costs related to Covid-19 prevention - Hanoi

Official Circular No. 31557/CTHN-TTHT dated August 13, 2021 of the Tax Department of Hanoi on tax policy related to expenses for employees during the Covid-19 pandemic

Deductible expenses when determining taxable income 

+ For the cost of employees’ quarantine: In case there is a labor contract in which the expense for housing paid by the enterprise is stated, the expenses paid to the quarantine establishment shall be included in the deductible expenses if there are sufficient invoices, documents and lawful payment.

+ The cost of Covid-19 testing, vaccination for employees is considered a welfare expense directly paid to employees if this expense is made according to the provisions of Point 2.30, Clause 2. Article 6 Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance (amended and supplemented in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance) and the total amount of welfare expenses does not exceed 01 month's average salary actually made in the tax year then it shall be included in the deductible expenses when there are sufficient invoices, documents and lawful payment.

The determination of personal income tax

In case the Company during the covid-19 pandemic has incurred expenses for the prevention and control of the Covid-19 pandemic according to the provisions of law, and if these expenses are incurred with the name of the beneficial individual then they shall be included in the income subject to PIT according to the provisions of Item dd.3.2, Clause 2, Article 2 of Circular 111/2013/TT-BTC.

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