The company incurs testing costs for some of its employees who have to work outside the province and foreign experts come to work. Does this cost need to be subject to personal income tax for employees who are tested according to the company's work requirements?
Article table of contents
Is the cost of Covid-19 testing for employees subject to PIT? (Illustration)
According to the provisions at Point dd, Clause 2, Article 2 of Circular 111/2013/TT-BTC , the incomes subject to personal income tax from salaries and wages include:
Cash or non-monetary benefits other than salaries and wages paid by the employer that the taxpayer enjoys in the form of other service expenses for individuals in health care activities. health, entertainment, aesthetic entertainment ... if the payment content clearly states the name of the beneficiary ."
In case the content of the service fee payment does not include the name of the individual entitled to it but is shared with the employee's collective, it is not included in the taxable income.
On the other hand, based on point a, Article 1 of Official Dispatch 7038/VPCP-KTTH of the Government Office on isolation and treatment costs for COVID-19:
- For quarantine in barracks and military schools: continue to offer the benefits for persons placed under centralized quarantine mentioned in the Government’s Resolution No. 37/NQ-CP dated March 29, 2020 on some specific benefits for COVID-19 prevention and control. These benefits shall be covered by state budget and partially covered by the financial support for COVID-19 prevention and control received by the Central Committee of Vietnam Fatherland Front.
- For entrants undergoing quarantine in hotels, resorts and other quarantine facilities: these individuals shall pay for their own meals, lodgings and living expenses while undergoing quarantine in hotels, resorts and other quarantine facilities at rates decided by these hotels, resorts and other quarantine facilities; and, concurrently, take tests at the request of health authorities and pay testing costs to healthcare establishments at existing medical fee rates. State budget shall cover disinfection cost, assistance for security forces and other costs according to regulations of law in hotels, resorts and other quarantine facilities.
In addition, under the guidance of the General Department of Taxation in Official Dispatch 5032/TCT-CS on the cost of isolation for COVID-19 prevention and control of foreign experts, in case the foreign worker is paid by the Company when entering Vietnam to prevent and control the Covid-19 epidemic, this expense is the employee's benefit. Therefore, the above expenditures are included in the income subject to personal income tax from salaries and wages of employees.
From the above provisions, in case the Company incurs costs for COVID-19 testing for employees, if the expenditure does not include the name of the individual entitled to it, but it is shared among the employees, it is not included in the employee's personal income taxable income.
If the above-mentioned expenses for COVID-19 testing for employees clearly state the name of the beneficiary, it must be included in the employee's personal income tax under the provisions of Circular 111/2013/TT-BTC of Vietnam.
Bao Ngoc
- Key word:
- COVID-19 test in Vietnam
