Assistance of tax reduction for employers having large numbers of female employees in Vietnam

Assistance of tax reduction for employers having large numbers of female employees in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. What are employers having large numbers of female employees under the law in Vietnam?

According to Article 74 of Decree 145/2020/ND-CP, it is considered that an employer has a large number of female employees if such employer has:

- 10 - 99 female employees that account for at least 50% of the total number of employees.

- 100 - 999 female employees that account for at least 30% of the total number of employees.

- 1000 female employees or more.

2.  Assistance of tax reduction for employers having large numbers of female employees in Vietnam

Pursuant to Article 83 of Decree 145/2020/ND-CP, assistance for employers having large numbers of female employees as follows:

-  Employers that invest in construction of kindergarten centers and classes, culture and other welfare works satisfying standards specified in policies on encouragement of private investment will receive incentives in the fields of education, vocational training, healthcare, culture, sports and environment.

Employers that invest in construction of housing for workers will receive incentives prescribed by the Law on Housing 2014.

Employers that invest in or organize kindergarten centers and classes will be eligible for infrastructure rent reduction or exemption.

- The State will provide assistance for employers as follows:

+ Employers having large numbers of female employees will be eligible for tax reduction as prescribed by tax laws;

+ Additional expenditures on female employees’ welfare, assurance of gender equality, preventing and combating sexual harassment in the workplace prescribed in Decree 145/2020/ND-CP will be deductible when calculating income subject to corporate income tax as prescribed by the Ministry of Finance.

In addition, Under Clause 1, Article 21 of Circular 78/2014/TT-BTC, a production, construction or transportation enterprise that employs between 10 and 100 female laborers who account for more than 50% of its total regular employees or regularly employs over 100 female laborers who account for more than 30% of its total regular employees is entitled to a reduction of payable CIT equivalent to actual additional expenses for female laborers as guided in Item a, Point 2.9, Clause 2, Article 6 of Circular 78/2014/TT-BTC if they can separately account such expenses.

Non-business units and offices of corporations not directly engaged in production and business operation are not entitled to tax reduction under this Point.

Thus, businesses that employ many female workers will receive tax reductions according to tax laws.

3. Improvement of benefits and working conditions for female employees in Vietnam

Pursuant to Article 79 of Decree 145/2020/ND-CP, regulations on improvement of benefits and working conditions for female employees in Vietnam as follows:

- Employers ensure there are adequate restrooms at the workplace in accordance with regulations of the Ministry of Health.

- Employers are encouraged to cooperate with internal employee representative organizations in:

+ Preparing plans and implementing solutions for ensuring constant availability of works for both male and female employees; applying flexible time table, part-time work schedules, work-from-home; provision of advanced training; provision of training for female employees in extra vocations that are suitable for females’ physiology and motherhood;

+ Building art, sports, health facilities, housing and other amenities serving employees in worker-populated areas.

Nguyen Ngoc Que Anh

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