What are regulations on standards for airfares for persons on domestic work trips in Vietnam?

What are regulations on standards for airfares for persons on domestic work trips in Vietnam?

Pursuant to Clause 1, Article 5 of Circular 40/2017/TT-BTC regulating payment of travel expenses:

Payment of travel expenses

1. Invoice-based payment:

a) Persons on work trips may receive payments of travel expenses, including:

- Expense for travel from their homes or offices to airports, railway stations or coach stations and vice versa; airfares, train tickets or tickets of mass transit vehicles from their agencies to work-trip destinations and vice versa.

- Expense for travel within localities of work-trip destinations, such as from lodgings to workplaces, from airports, railway stations or coach stations to lodgings and vice versa.

- Charges for transport by road, waterway or seaway for themselves and vehicles.

- Charges for carrying materials, equipment, devices and/or tools (if any) directly serving work trips paid by persons on work trips.

- Charges for transporting their baggage by airplane in case such baggage charges are not included in airfares.

In case sending and receiving agencies or units have arranged vehicles for officials, public employees or contractual employees, they will not have such expenses paid.

b) Based on agencies' or units' internal spending regulations, the nature of work trips and allocated funds, heads of agencies or units shall approve officials’ or public employees' or contractual employees’ request for travel by air, train, car or public transport vehicles or other means of transport, ensuring thrift and efficiency;

...

Thus, payment for travel expenses in business trips includes the following:

- Travel expenses from home or office to the airport, train station, bus station;

- Airplane tickets, train tickets, public transport to work place and vice versa.

- Travel expenses in the locality of the business destination;

- Freight and transportation fees by road, waterway, and sea for yourself and the vehicles of business travelers.

- Fees for documents, equipment, tools, props (if any) directly serving the business trip that the business traveler has paid.

- Baggage charges for people traveling on business by plane in case the ticket price does not include carry-on baggage charges.

Note : In case the agency or unit where the business destination is located has arranged transportation, the business traveler will not be able to pay these expenses.

In addition in Vietnam, based on the unit's internal spending regulations; Due to the nature of the business trip and within the scope of allocated funding sources, the head shall consider and approve officers, civil servants, public employees and employees to travel on business by plane, train, etc. car or public transport or other means of ensuring the principle of saving per diem and efficiency.

What are regulations on standards for airfares for persons on domestic work trips in Vietnam? (Image from the Internet)

What are regulations on standards for airfares for persons on domestic work trips in Vietnam?

Pursuant to Point c, Clause 1, Article 5 of Circular 40/2017/TT-BTC regulating standards for airfares for persons on domestic work trips as follows:

[1] For high-ranking leaders (holding titles higher than ministerial level or equivalent), state current regulations shall apply.

[2] Business-class or class-C airfares are for:

- President, Vice President;

- Chairman of the National Assembly, Vice Chairman of the National Assembly;

- Prime Minister, Deputy Prime Minister;

- Chief Justice of the Supreme People's Court;

- Director of the Supreme People's Procuracy;

- Member of the National Assembly Standing Committee;

- Chairman of the Nationalities Council;

- Chairman of the National Assembly Committee;

- Ministers, Heads of ministerial-level agencies;

- Chairman of the President's Office, Chairman of the National Assembly Office;

- Senior prosecutor;

- Vice Chairman of the National Assembly's Ethnic Council;

- Deputy Chairman of the National Assembly Committee

- Head of the National Assembly Standing Committee

- Deputy Head of the National Assembly Office

- Deputy Head of the Office of the President

- National Assembly delegates work full-time at the Central level

- Deputy Head of the National Assembly Standing Committee

- Leadership positions under the Supreme People's Court:

+ Deputy Chief Justice of the Supreme People's Court

+ Chief Justice of the Supreme People's Court

+ Deputy Chief Justice of the Supreme People's Court

- Leadership positions under the Supreme People's Procuracy:

+ Deputy Director of the Supreme People's Procuracy

+ Director of the Professional Department, Director of the Professional Institute, Director of the Investigation Department under the Supreme People's Procuracy

+ Deputy Director of the Professional Department, Deputy Director of the Professional Institute, Deputy Director of the Investigation Department under the Supreme People's Procuracy

- Chairman of the Provincial People's Council, Vice Chairman of the Provincial People's Council

- Head of the full-time National Assembly Delegation, Deputy Head of the National Assembly Delegation and full-time National Assembly Delegation

- Standing member of the People's Council

- Chief of Office of the People's Council

- Head of the People's Council Specialized Committee

- Deputy Chief of Office of the People's Council

- Deputy head of the People's Council's specialized committee

- Chief of Office of the National Assembly Delegation

- Deputy Chief of Office of the National Assembly Delegation

- Leadership positions in the Provincial People's Court:

+ Chief Justice, Deputy Chief Justice

+ Chief of the Court, Deputy Chief of the Court

- Leadership positions in the Provincial People's Procuracy:

+ Director, Deputy Director

+ Head of operations department, Deputy head of operations department

- Chairman of the district People's Council, Vice Chairman of the district People's Council

- Standing member of the district-level People's Council;

- Head of the specialized committee of the district-level People's Council, Deputy Head of the specialized committee of the district-level People's Council;

- Leadership positions in the district-level People's Court: Chief Justice; Deputy Judge

- Leadership positions in the district-level People's Procuracy: Director; vice president

- Minister and equivalent positions;

- Deputy ministers and leading officials have a position allowance coefficient of 1.3 or higher;

- Deputy heads of socio-political organizations at the Central level;

- Standing Secretary of the Ho Chi Minh Communist Youth Union Central Committee.

[3] Economy-class airfares are applicable to persons holding other titles.

Are employee per diems included in personal income taxable income in Vietnam?

Pursuant to Point dd.4, Clause 2, Article 2, Circular 111/2013/TT-BTC stipulating taxable income:

Taxable income

According to Article 3 of the Law on Personal income tax and Article 3 of the Decree No. 65/2013/ND-CP, the incomes subject to personal income tax (hereinafter referred to as taxable incomes) include:

...

2. Incomes from wages and remunerations.

Incomes from wages and remunerations (hereinafter referred to as wages) are incomes paid to employees from employers, including:

...

dd) Other benefits in cash or not in cash apart from wages paid to the taxpayer by the employer in any shape or form:

...

dd.4) Flat expenditures on stationery, business trips, phone calls, costumes, etc. that are in excess of the limits prescribed by the State. Flat expenditures are not included in taxable income in the cases below:

dd.4.1) For the officials and employees in public service agencies, communist party’s agencies, associations: the flat expenditure shall apply guiding documents promulgated by the Ministry of Finance.

dd.4.2) For the employees working in businesses and representative offices: the flat expenditure shall conform to the income that incurs corporate income tax and guiding documents of the Law on Enterprise income tax.

dd.4.3. For the employees in international organizations and representative offices of foreign organizations: the flat expenditure shall comply with regulations of such international organizations and representative offices of foreign organizations.

...

Thus, the level of business trip expenses applied is consistent with the level of determining income subject to corporate income tax and is not included in income subject to personal income tax iNV ietnam.

In case the company spends more on employees than the prescribed amount, the amount spent above the prescribed amount must be included in income subject to personal income tax in Vietnam.

Best regards!