Are Telephone Expenses and Business Travel Allowances Subject to Personal Income Tax?

According to the guidance in Official Dispatch 1166/TCT-TNCN in 2016:

- Regarding Travel Expense Payments: In cases where travel expense payments such as airfare, lodging expenses, taxi fares, and meal allowances for individuals on business trips are included in deductible expenses when determining taxable corporate income as per the regulations of the Law on Corporate Income Tax and its current guiding documents, these travel expense payments are considered deductible income when determining taxable personal income.

- Regarding Telephone Expense Payments for Individuals: If telephone expense payments for individuals are specifically defined with conditions of entitlement and levels of entitlement in one of the following documents: Employment Contract; Collective Labor Agreement; Financial Regulations of the Company, Corporation, Group; Reward Regulations as stipulated by the Chairman of the Board, General Director, Director according to the company's, corporation’s financial regulations, and are included in deductible expenses when determining taxable corporate income, then the telephone expense payments for individuals are considered deductible income when determining taxable personal income. If a unit provides telephone expense payments to employees exceeding the prescribed fixed payment limit, the portion exceeding the prescribed fixed payment must be included in taxable personal income.

Based on the above regulations, the telephone allowance and travel expenses provided by the company to you each month will be deducted when determining your taxable personal income.

Editorial board informs you!

Sincerely!