OFFICIAL LETTER 79557/CT-TTHT DATED 03 DECEMBER 2018 OF HA NOI TAXATION DEPARTMENT GUIDING ON PIT, CIT OF ALLOWANCES FOR EMPLOYEES
Official letter 79557/CT-TTHT dated 03/12/2018 of Ha Noi Taxation Department guiding on PIT, CIT of allowance for employees:
In case the company pays rent, gasoline (from home to company at monthly fixed rate), telephone, allowance for employees, details of eligibility and level of entitlement. in one of the following documents: labor contract; Collective labor agreement; Financial regulations of the Company, the Corporation, the Group; The reward rules shall be prescribed by the chairman of the Managing Board, the general director or the director according to the financial regulations of the company or corporation:
- Regarding the allowance for house rent, petrol and allowance: The Company is allowed to account the deductible expenses when determining the income subject to CIT if it meets the requirements of Article 4 of Circular 96/2015. / TT-BTC and calculate the income subject to personal income tax of employees.
- Regarding the telephone allowance: The package of personal telephone charges shall be deducted from the deductible expenses when determining CIT taxable incomes according to the provisions of the EIT Law, which shall be deducted when determining PIT taxable income.
In cases where the company pays telephone costs to laborers higher than the prescribed package expenditures, the expenditures higher than the prescribed package expenditures must be accounted into PIT taxable incomes.
