Expenses to be deducted when calculating CIT related to Covid-19

On October 27, 2021, the General Department of Taxation issued Official Letter 4110/TCT-DNNCN on tax policies for expenses related to the Covid-19 epidemic.

Chi phí được trừ khi tính thuế TNDN liên quan Covid-19

The Ministry of Finance (General Department of Taxation) received documents from the Embassy of the Republic of Korea in Vietnam, the European Business Association in Vietnam and the Vietnam Business Forum requesting guidance on tax policy for expenses related to the Covid-19 epidemic.

Regarding this issue, the Ministry of Finance (General Department of Taxation) has the following comments:

The following expenses are included in the deductible expenses before CIT and are not included in the employee’s taxable income:

Expenses for medical isolation due to the Covid-19 epidemic at home and abroad for business trips abroad (meals and accommodation expenses; Covid-19 testing costs; travel expenses) pick-up from the place of entry into Vietnam or from the place where the subject must undergo medical isolation to the medical isolation facility; expenses for living needs during the medical isolation days; …) to comply with the request of a competent state agency;

Expenses for testing Covid-19 or buying Covid-19 test kits for employees, costs for purchasing equipment for employees to protect employees from the risk of infection during work;

Food and accommodation expenses of employees staying at enterprises operating under the “3 on-site” option.

The Ministry of Finance (General Department of Taxation) would like to note that the above expenses reflect the actual arising and have all invoices and documents in accordance with the provisions of law.

Official Letter 4110/TCT-DNNCN was issued on October 27, 2021.

Source: https://thuvienphapluat.vn/tintuc/vn/thoi-su-phap-luat-binh-luan-gop-y/38177/chi-phi-duoc-tru-khi-tinh-thue-tndn-lien-quan-covid-19

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