Point g, Clause 2, Article 2 of Circular 111/2013/TT-BTC (amended and supplemented in Circular 92/2015/TT-BTC) stipulates that income from salaries and wages is not included in income subject to personal income tax (PIT).

Notably, the employer's support for medical examination and treatment of serious illnesses for the employee and the employee's relatives.

Relatives of the employee in this case include: biological children, legally adopted children, illegitimate children, stepchildren of the wife or husband; wife or husband; biological father, biological mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legal adoptive father, adoptive mother.

W-hospital (45).jpg
Money to support medical examination and treatment for serious illnesses for employees and their relatives is not subject to personal income tax. Photo: Hoang Ha

The amount of support not included in taxable income is the actual amount paid according to the hospital fee payment voucher, but not exceeding the amount of hospital fees paid by the employee and the employee's relatives after deducting the amount paid by the insurance organization.

The employer paying the support money is responsible for: keeping a copy of the hospital fee payment document with confirmation from the employer (in case the employee and the employee's relatives pay the remaining amount after the insurance organization pays directly to the medical facility) or a copy of the hospital fee payment document; a copy of the health insurance payment document with confirmation from the employer (in case the employee and the employee's relatives pay the entire hospital fee, the insurance organization pays the insurance money to the employee and the employee's relatives) together with the support money payment document for the employee and the employee's relatives suffering from a serious illness.

9 types of income from salaries and wages are not subject to personal income tax

1. Employer's support for medical examination and treatment of serious illness for employees and their relatives.

2. Amount received according to regulations on the use of means of transport in State agencies, public service units, Party organizations and unions.

3. Amount received under the public housing regime as prescribed by law.

4. Amounts received other than salary and wages for participating in giving opinions, appraising and examining legal documents, resolutions, political reports; participating in inspection and supervision delegations; receiving voters and citizens; uniforms and other work related to directly serving the activities of the National Assembly Office, the Nationalities Council and committees of the National Assembly, delegations of National Assembly deputies; the Central Office and Party committees; the Office of the City Party Committee, the Provincial Party Committee and committees of the City Party Committee, the Provincial Party Committee.

5. Mid-shift meals and lunch money are paid by employers who organize mid-shift meals and lunch for employees in the form of directly cooking, buying meals, or providing meal vouchers.

In case the employer does not organize mid-shift meals or lunch but pays for the employee, it is not included in the taxable income of the individual if the amount of the payment is appropriate. In case the amount of the payment is higher than the guideline of the Ministry of Labor, War Invalids and Social Affairs, the excess amount must be included in the taxable income of the individual.

The specific expenditure levels applicable to state-owned enterprises and organizations, units under administrative agencies, the Party, unions, and associations shall not exceed the guidelines of the Ministry of Labor, Invalids and Social Affairs.

For non-state enterprises and other organizations, the expenditure level is decided by the head of the unit in agreement with the union chairman, but must not exceed the level applicable to state-owned enterprises.

6. The amount of money for round-trip airfare paid by the employer on behalf of (or for) foreign employees working in Vietnam, and Vietnamese employees working abroad who go home on annual leave once a year.

7. Tuition fees for children of foreign employees working in Vietnam to study in Vietnam, and children of Vietnamese employees working abroad to study abroad from preschool to high school are paid by the employer.

8. Personal income received from sponsoring associations and organizations is not included in personal income tax if the individual receiving the sponsorship is a member of the association or organization; the sponsorship funds are used from the State budget or are managed according to State regulations; the creation of literary and artistic works, scientific research projects... to carry out the State's political tasks or according to the program of activities in accordance with the charter of that association or organization.

9. Payments made by employers to serve the mobilization and rotation of foreign employees working in Vietnam according to the provisions of the labor contract, in compliance with the standard labor schedule according to international practices of some industries such as oil and gas, mining.