Pursuant to Official Letter No. 32592/CTBDU-TTHT dated December 26, 2024, issued by the Tax Department of Binh Duong Province regarding the policy on personal income tax (PIT) for working-trip allowance:
If a company incurs expenses for airfare, hotel accommodation, working-trip allowance or other costs related to employee enterprises trips, in accordance with the internal regulations of the entity and as defined under working-trip allowance pursuant to legal regulations specified in Clause 2, Article 2 of Circular No. 111/2013/TT-BTC, such expenses are not included in the taxable income for PIT purposes of the employees.
However, in cases where the company provides working-trip allowance exceeding the fixed rates stipulated by the regulations, the excess amount beyond the stipulated fixed rate must be included in the taxable income for PIT purposes.
Fixed allowance excluded from taxable Income:
- For civil servants, employees, and individuals working in administrative and non-business agencies:
The fixed allowance is determined in accordance with the guidelines issued by the Ministry of Finance. - For employees in business organizations and representative offices:
The fixed allowance must align with the taxable income regulations under the Corporate Income Tax Law. - For employees in international organizations or foreign representative offices:
The fixed allowance follows the regulations established by the respective international organization or representative office.
Expenses Excluded in Taxable Income:
- Transportation provided for groups of employees is not taxable. (if it’s an individual’s transportation will be considered taxable income)
- Training expenses for skill and professional development to enhance qualifications and skills relevant to their job or are part of the employer’s planned activities are not included in taxable income.
Other Non-Taxable Benefits:
- Expenses incurred on public holidays or special occasions.
- Costs for hiring tax consulting or filing services for individuals or groups.
Payments for domestic staff (e.g., drivers, cooks, etc.) under a labor contract.