Regarding this content, the current regulations guide as follows:
1. In Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015 of the Ministry of Finance amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance providing guidance on corporate income tax:
“Article 6. Deductible and non-deductible expenses when determining taxable income
1. Except for non-deductible expenses mentioned in Clause 2 of this Article, enterprises may deduct all expenses if they fully satisfy the following conditions:
a) Actual expenses incurred in connection with production and business activities of the enterprise.
b) Expenses with sufficient legal invoices and documents as prescribed by law.
c) Expenses, if there is an invoice for purchase of goods and services each time with a value of VND 20 million or more (price includes VAT) when making payment, there must be a non-cash payment voucher.
…
2. Expenses that are not deductible when determining taxable income include:
2.6. Paying salaries, wages and bonuses to employees in one of the following cases:
…
– In case the enterprise signs a labor contract with the employee, which records the payment of house rent paid by the enterprise to the employee, this payment is of salary and wage nature and has full invoices and documents as prescribed shall be included in deductible expenses when determining taxable income of corporate income tax.
…
2.9. Expenses for transportation allowances on vacation are not in accordance with the provisions of the Labor Code.
Allowances for employees on business trips, travel expenses and accommodation rents for employees on business trips if there are sufficient invoices and documents are included in deductible expenses when determining taxable income. In case the enterprise has contracted travel, accommodation and allowances for employees to go on business trips and strictly comply with the financial regulations or internal regulations of the enterprise, it shall be included in the deductible expenses the contracted travel, accommodation and allowances amount.
In case the enterprise sends workers on business trips (including domestic and foreign missions), if there is an expense of 20 million VND or more, the cost of buying air tickets which are paid by the individual’s bank card is eligible as a form of non-cash payment and is included in deductible expenses if the following conditions are satisfied:
– Having appropriate invoices and documents delivered by the goods or service provider.
– The enterprise has a decision or document to send employees on a business trip.
– Financial regulations or internal regulations of the enterprise allow employees to pay for business trips, buy air tickets with a bank card owned by the individual who is the cardholder and this payment is then paid back to the employee by the enterprise.
In case the enterprise buys air tickets through an e-commerce website for employees to go on business trips to serve its business and production activities, the documents used as the basis for calculating deductible expenses are the electronic air ticket, boarding pass and non-cash payment vouchers of the enterprise with individuals participating in the transportation. In case the enterprise fails to recover the employee’s boarding pass, the documents used as the basis for calculating the deductible expenses are the electronic air ticket, the decision or document on sending the employee on a business trip, and non-cash payment vouchers of the enterprise with individuals participating in the transportation.
…
2.30. Expenses that do not correspond to taxable revenue, except for the following expenses:
…
– Expenses of welfare nature are spent directly on employees such as: expenses for weddings and funerals of the employees and the their family; vacation expenses, treatment support expenses; expenses on additional support for learning knowledge at training institutions; expenses to support the families of employees affected by natural disasters, epidemics, accidents, illness; spending on rewarding children of employees with good academic achievements; expenses to support travel expenses on holidays and Tet for employees; expenses for accident insurance, health insurance, and other voluntary insurance for employees (except for expenses for purchasing life insurance for employees as guided at Point 2.6, voluntary retirement insurance for employees as guided at point 2.11 of this Article) and other welfare payments. The total amount of welfare expenses mentioned above must not exceed 01 month’s average salary actually made in the tax year of the enterprise.
…”
2. In Clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on personal income tax and guiding the implementation of Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax stipulates:
“Article 2. Taxable incomes
2. Income from salary and wages
Income from wages and salaries is the income an employee receives from an employer, including:
…
dd.4) The lump sum expenses on stationery, business trip expenses, telephones, uniforms, etc. is higher than the current regulations of the State. The lump sum expenses are not included in taxable income in some cases as follows:
dd.4.1) For cadres, civil servants and people working in administrative and non-business agencies, the Party, mass organizations, and associations: the lump sum expenses shall be applied according to the guiding documents of the Ministry of Finance.
dd.4.2) For employees working in business organizations and representative offices: the lump sum expenses is consistent with the level of determination of taxable income according to documents guiding the implementation of Law on corporate income tax.
dd.4.3) For employees working in international organizations and representative offices of foreign organizations: the lump sum expenses shall comply with regulations of the international organization and its representative office.
…
dd.7) Other benefits.
Other benefits that the employer spends on employees 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 chores under contract…
…”
3. At Point a, Article 1 of Official Dispatch No. 7038/VPCP-KTTH dated August 24, 2020 of the Government Office on isolation and treatment costs for Covid-19 is prescribed as follows:
“a) About the cost of concentrated isolation
– For cases of isolation at military barracks and military schools: Continue to implement the regime for people subject to concentrated isolation according to Resolution No. 37/NQ-CP dated March 29, 2020 of the Government on a number of specific regimes in the prevention and control of the Covid-19 pandemic. Funding for the implementation is guaranteed by the state budget and partially supported by funds received by the Central Committee of the Vietnam Fatherland Front for the prevention and control of the Covid-19 pandemic.
– For cases entering Vietnam and being subject to concentrated isolation measures and wishing to carry out isolation at hotels, resorts and other establishments selected as places of concentrated isolation: Individuals must pay for their own expenses for food, accommodation and living during the quarantine days for hotels, resorts and other establishments at the rates set by hotels, resorts and other establishments; at the same time, must comply with the appointment of testing according to the professional requirements of the health authorities and pay the testing costs for medical facilities by themselves according to the current medical service prices….”
Based on the above provisions:
– Regarding the determination of deductible expenses when determining taxable income:
+ For the cost of isolation at the hotel for foreign experts, in case the enterprise signs a labor contract with the employee in which the expenses for house rent is paid by the enterprise to the employee are recorded, the expenses paid to the isolation facility shall be included in deductible expenses when determining taxable income if there are sufficient invoices and documents and payment as prescribed.
+ For the cost of buying business tickets for foreign experts, if the expenses are made according to the provisions of Point 2.9, Clause 2, Article 6 of 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) shall be included in deductible expenses when determining taxable corporate income when there are sufficient invoices and documents and payment as prescribed.
+ The cost of Covid-19 testing for foreign experts 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 of 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) shall be included in deductible expenses when determining taxable corporate income when there are sufficient invoices and documents and payment as prescribed.
– Regarding the determination of personal income taxable income:
+ In case the foreign worker is paid by the Company for the cost of isolation and prevention of Covid-19 when entering Vietnam, this expense is the employee’s benefit. Therefore, the above expenses are included in taxable Personal income from salaries and wages of employees.