– Pursuant to Article 2 of Circular No. 119/2014/TT-BTC dated August 25, 2014 amending and supplementing gauges 1, 2, 3, 4, Article 1 of Circular No. 111/2013/TT-BTC dated 15/15 8/2013 of the MoF guiding the implementation of the Law on PIT, the Law amending and supplementing a number of articles of the Law on PIT and Decree No. 65/2013/ND-CP of the Government stipulating details a number of articles of the Law on PIT and the Law amending and supplementing a number of articles of the Law on PIT as follows:
“Article 1. Taxpayers
Taxpayers being resident individuals and non-resident individuals as prescribed in Article 2 of the Law on PIT, Article 2 of Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government stipulating detailing a number of articles of the Law on PIT and the Law amending and supplementing a number of articles of the Law on PIT (hereinafter referred to as Decree No. 65/2013/ND-CP), having income subject to tax according to the provisions of Article 3 of the Law on PIT and Article 3 of Decree No. 65/2013/ND-CP.
The scope of determination of taxable income of taxpayers is as follows:
For resident individuals, taxable income is income arising inside and outside the Vietnamese territory, regardless of where the income is paid;
…”
– Pursuant to Point đ, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the MoF, guiding the implementation of the Law on PIT, the Law amending and supplementing a number of articles of the Law on PIT and the Government’s Decree No. 65/2013/ND-CP detailing a number of articles of the Law on PIT and the Law amending and supplementing a number of articles of the Law on PIT:
“2. Income from salary, wages
Income from wages and salaries is the income an employee receives from an employer, including:
…
đ) Cash or non-cash benefits other than salary or wages paid by the employer that the taxpayer is entitled to in any form:
…
đ.4) The portion of expenses for stationery, business trip, telephone, clothing, etc. is higher than the current level regulated by the Government. The level of fixed expenditure is not included in taxable income in some cases as follows:
đ.4.1) For officials, civil servants and people working in administrative and non-business agencies, the Party, and associations: the level of expenditures shall be applied according to the guiding documents of the Ministry of Finance.
đ.4.2) For employees working in business organizations and representative offices: the applicable lump sum expenditure is consistent with the level of determination of taxable income according to the guiding documents regarding Law on CIT.
đ.4.3) For employees working in international organizations and representative offices of foreign organizations: the level of payment shall comply with regulations of the international organization, the foreign representative office.
…
đ.7) Other benefits.
Other benefits that the employer spends for the employee such as: spending on holidays and public holidays; hire consulting services, hire tax returns for one or a group of individuals by name; expenses for domestic helpers such as drivers, cooks, people doing other household stuff under contracts…”
According to the aforementioned clauses, there are some reference principles as follows:
– In case the expenses for making and extending temporary residence card (TRC), Visa for foreign staff are paid by the Company as the employer’s responsibility so that the foreign staff is eligible to work at the Company in Vietnam, these expenses are not included in the PIT taxable income from the salary and wages of the foreign staff.
– In case the expenses for making and renewing TRC and Visas for foreign staff are paid by the Company on behalf of the employees and are the benefits of the employees, these amounts shall be included in the income subject to PIT from salaries and wages of foreign staff.
– In case the cost of making a Visa for employees working at the Company in Vietnam to go on a business trip abroad at the request of the job is a business trip fee in accordance with the financial regulations or internal regulations of the Company and in accordance with the provisions of Item đ.4, point đ, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated 15 Aug 2013 of the MoF, it is not included in the employee’s PIT taxable income. motion. Expenses spent which exceed the prescribed amount shall be included in the employee’s PIT taxable income.
– In case the company hires foreign staff, the company is responsible for applying for a work permit, so the cost of making a work permit paid by the company is not included in the employee’s PIT taxable income.