Official Letter 4110/TCT-DNNCN 2021 – Costs related to Covid-19 are included in business expenses and are not included in taxable personal income.

The Ministry of Finance (General Department of Taxation) received document No. KEV-21-199 dated March 2, 2021, from the Embassy of the Republic of Korea in Vietnam, document No. 0306/2021/MOF/EUC-HR&TSC dated June 3, 2021, from the European Chamber of Commerce in Vietnam, and document No. TCWG210621 dated June 21, 2021, from the Vietnam Business Forum, requesting guidance on tax policy for expenses related to the Covid-19 pandemic. The Ministry of Finance (General Department of Taxation) highly appreciates the opinions of the Embassy of the Republic of Korea in Vietnam, the European Chamber of Commerce in Vietnam, and the Vietnam Business Forum. We highly value the efforts of these organizations and the business community in overcoming difficulties caused by the Covid-19 pandemic. Regarding tax policy for expenses related to the Covid-19 pandemic, the Ministry of Finance... The General Department of Taxation has the following opinion:

Regarding medical quarantine expenses due to Covid-19, both domestically and abroad for business trips overseas (including food and accommodation costs; Covid-19 testing costs; transportation costs from the point of entry into Vietnam or from the location where the individual is found to be in quarantine to the quarantine facility; living expenses during the quarantine period; etc.), as required by competent state agencies, and expenses for Covid-19 testing or purchasing Covid-19 test kits for employees, expenses for purchasing equipment to protect employees from infection during work, and food and accommodation costs for employees working at enterprises operating under the "3-in-1" model, these expenses are deductible for corporate income tax purposes and are not included in the taxable personal income of the employees.

The Ministry of Finance (General Department of Taxation) would like to note that the above-mentioned expenses reflect actual expenses incurred and are fully supported by invoices and documents in accordance with the law.

The Ministry of Finance (General Department of Taxation) hereby informs the Embassy of the Republic of Korea in Vietnam, the European Business Association in Vietnam, and the Vietnam Business Forum. During the implementation process, if any difficulties or problems arise, please contact the tax authorities for specific guidance./.