Are the expenses for prevention control of CIVI-19 epidemics calculated into taxable income?
Costs related to the prevention and control of CIVI-19 epidemics reflect the actual arising and full invoices and documents in accordance with the law, which is calculated in the expenses deductible when calculating corporate income tax and not counting the income taxable income of employees.
In 2021, Ms. Ly Thi Kim Anh Company (Hanoi) had a team of epidemic prevention and control and received allowances:
- Stay allowance, applicable to employees must work directly at the company but cannot go/return during the day due to the ban and restrictions of local authorities (these employees must save reside at the company and get 200,000 VND/day of stay).
- Allowance for the staff in the team to sample the CDC instructed by CDC to test Covid-19 before entering the company.
- Allowances for employees in the company's epidemic prevention department.
Employees who want to go to work must go to test covid-19 at the hospital and documents paid by the company.
Ms. Kim Anh asked, the above amounts arising during the major outbreaks in 2021, does it take into account the personal income tax of the employee?
The General Department of Taxation and the Ministry of Finance answered this issue as follows:
The the same problem about the cost of preventing and combating the CIVI-19 epidemic of the Labor, the General Department of Taxation has been guided in Official Letter No. 4110/TCT-DNNCN dated October 27, 2021, specifically:
"For medical isolation expenses due to CIVI-19 pandemic in the country and abroad for cases of traveling abroad (costs of meals and accommodation; the shuttle costs from the entry place to Vietnam or from the detection of the object must perform medical isolation to the medical isolation basis; the cost of serving the needs of living on medical isolation days; …) to comply with the requirements of the competent state agency and the cost of CIVI-19 testing or buying CIVI-19 tests for employees, the cost of buying equipment for workers In order to protect workers from the risk of infection in the process of working and the cost of food and accommodation of workers in the enterprise operating under the "3 on the spot" plan, these expenses are calculated in Expenses are deducted when calculating corporate income tax and not included in the employee's personal income taxable income.
The Ministry of Finance (General Department of Taxation) would like to note that the above expenses reflect the actual arising and full invoices and documents in accordance with the law. "
Proposing Ms. Ly Thi Kim Anh based on the actual situation and researching the content of Official Letter No. 4110/TCT-DNNCN dated October 27, 2021 of the General Department of Taxation as mentioned above to comply with the provisions of law.
By: Translator: LeAnh-Bizic
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