Personal Income Tax Calculation for Expense Reimbursement Without Invoices

Duy Thinh

09:27, 11/07/2024

In reality, many businesses are still confused about whether or not to calculate personal income tax (PIT) for lump-sum allowances for business trip expenses without invoices for employees (EEs). To clarify this issue, you can refer to the article below.

Based on Point d.4 Clause 2 Article 2 of Circular 111/2013/TT-BTC, for lump-sum allowances for business trips including allowances for lodging, subsistence, travel expenses, fuel, telephone expenses, etc., if specified clearly regarding the conditions and amounts in the Company's issued Financial Regulations, they shall not be included in the employee's personal income tax (PIT). In case the company provides a higher amount than stipulated in the Financial Regulations, the excess amount must be included in the employee's taxable income.

Based on Point g.5 Clause 2 Article 2 of Circular 111/2013/TT-BTC, for mid-shift meals, lunch allowances paid in cash to employees going on business trips according to the company's Financial Regulations, if the expense is in compliance with the regulations of the Ministry of Labor - Invalids and Social Affairs (730,000 VND/month following Circular 26/2016/TT-BLDTBXH), it shall not be included in taxable income. If the expense exceeds the specified limit, the excessive part shall be included in taxable income.

Article 2. Taxable Incomes

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2. Income from wages and salaries

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g) The following amounts are not included in taxable income:

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g.5) Mid-shift meals, lunch allowances provided by the employer to the employee through various forms such as direct cooking, meal purchase, meal voucher issuance.

In case the employer does not provide mid-shift, lunch meals but assigns cash to the employee, it shall not be included in the individual’s taxable income if the expense complies with the guidance of the Ministry of Labor - Invalids and Social Affairs. In case the amount exceeds the guidance of the Ministry of Labor - Invalids and Social Affairs, the excessive part must be included in the individual’s taxable income.

The specific expense level applying to state-owned enterprises and organizations, units under administrative agencies, the Communist Party, unions, and associations must not exceed the guidance of the Ministry of Labor - Invalids and Social Affairs. For non-state enterprises and other organizations, the expense level is decided by the unit head in agreement with the union chairman but must not exceed the level applied to state-owned enterprises.

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