7 September 2021
Bac Ninh Tax Department issued Official Letter No. 2177/CTBNI-TTHT dated 5 August 2021 to guide the implementation of the PIT policy. The contents are as follows:
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Regarding the state-owned enterprises, the enterprise's mid-shift meal payment rate is used as a basis for determining PIT taxable income only if the enterprise does not organize mid-shift meals or lunches for employees (not directly cook or hire a cooking unit at the company or buy industrial meals) but pay money directly to employees.
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Regarding an enterprise with 100% foreign investment, the organization of mid-shift meals for employees shall be decided by the General Director and the President of the Trade Union to ensure, regenerate, and improve the health of employees, encourage the organization to directly cook or buy meals for employees. This mid-shift meal payment is not included in the employee's PIT taxable income, does not control the number of expenses that the company must pay to suppliers.
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For example, if the Company hires a supplier to cook and provide meals to employees at the Company's cafeteria, the payment for the meal supplier is equivalent to VND 1,040,000/person/month. This expense is not included in the employee's PIT taxable income.
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