Based on Circular 111/2013/TT-BTC and Circular 92/2015/TT-BTC The Ministry of Finance stipulates the following:
Income from salaries and wages is the income that employees receive from their employers, including:
a) Salaries, wages, and other payments of a similar nature. in monetary or non-monetary forms.
b) Allowances and subsidiesexcluding allowances and subsidies stipulated in Clause 2, Article 2, Circular 111/2013/TT-BTC and Clause 1, Article 11, Circular 92/2015/TT-BTC
c) Remuneration Received in various forms such as: sales commissions, brokerage commissions; fees for participating in scientific and technical research projects; fees for participating in projects and schemes; royalties as stipulated by law; fees for participating in teaching activities; fees for participating in cultural, artistic, physical education, and sports performances; advertising service fees; other service fees, and other remuneration.
d) Money received from participating in business associations, corporate boards of directors, corporate supervisory boards, project management boards, management councils, associations, professional societies and other organizations.
e) Monetary or non-monetary benefits In addition to salaries and wages paid by the employer, taxpayers may receive the following in any form:
e.1) Housing, electricity, water and related services (if any), excluding: benefits related to housing, electricity, water and related services (if any) for housing built by the employer to provide free of charge to employees working in industrial zones; housing built by the employer in economic zones, areas with difficult socio-economic conditions, or areas with particularly difficult socio-economic conditions to provide free of charge to employees.
In case an individual stays at the office, the taxable income is based on the rent or depreciation, electricity, water and other services calculated according to the ratio of the area used by the individual to the area. headquarter.
Rent, utilities, and related services (if any) for housing paid by the employer are included in taxable income based on the actual amount paid, but Not exceeding 15% of total taxable income generated (excluding rent). at the unit regardless of where income is paid
For example:
In October 2019, Mr. B was an employee with a taxable income of VND 10.000.000 (excluding rent, utilities, and related services). The company provided a rent subsidy of VND 3.000.000.
We have, 15% of total taxable income is: 15% x 10.000.000 = 1.500.000 (VND).
3.000.000 – 1.500.000 = 1.500.000 VND
e.2) Amounts paid by the employer for life insurance, other non-mandatory insurance with accumulated premiums; voluntary retirement insurance or contributions to a voluntary retirement fund for employees.
In cases where the employer purchases non-mandatory insurance products for the employee and no accumulation Regarding insurance premiums, this is the amount of money paid to purchase this insurance product. Not count for into the taxable income of the employee for personal income tax purposes.
In cases where the employer purchases non-mandatory insurance products for the employee and accumulated Regarding insurance premiums, this is the amount of money paid to purchase this insurance product. tính into the taxable income of the employee for personal income tax purposes.
e.3) Membership fees and other service fees for personal use as requested, such as healthcare, recreation, sports, entertainment, and beauty services: Membership fees (such as golf club memberships, tennis court memberships, cultural and artistic club memberships, sports and fitness club memberships, etc.); Other service fees for personal use in healthcare, recreation, entertainment, and beauty services, specifically as follows:
+ If the card, the payment details include write by name If an individual or group of individuals uses >> then tính into taxable income for personal income tax purposes.
+ In cases where the card is used jointly and does not bear the name of the individual or group of individuals using it, the payment details for the service fee must be included. no writing The individual entitled to receive benefits that are shared among the group of employees >> then Not count for into taxable income.
e.4) The portion of the allocated budget for stationery, travel expenses, telephone, clothing, etc., exceeds the current regulations of the State.
For example:
Expenses for clothing exceeding 5.000.000 VND per year are subject to tax. The amount exceeding 5.000.000 VND is included in taxable income.
e.5) Regarding expenses for transportation services to and from the workplace for employees: Not count for included in the taxable income of employees according to the company's regulations.
e.6) Regarding payments made on behalf of employees for training to improve their skills and qualifications relevant to their professional work or according to the employer's plan, these payments are not included in the employee's income.
e.7) Other benefits.
Other benefits that employers provide to employees include: expenses during holidays and weekends; hiring consulting services, hiring tax preparers for a specific individual or group of individuals; expenses for domestic helpers such as drivers, cooks, and other contract workers…
f) Monetary or non-monetary bonuses of any kind, including bonuses in the form of securities, except for bonuses stipulated in point e, clause 2, Article 2 of Circular No. 111/2013/TT-BTC.
