Costs related to Covid are included in business expenses and not included in personal income taxable income

The Ministry of Finance (General Department of Taxation) received the document No. KEV-21-199 dated March 02, 03 from the Embassy of the Republic of Korea in Vietnam, Official Letter No. 2021/0306/MOF/EUC-HR&TSC dated 2021 June 03 of the European Business Association in Vietnam and Official Letter No. TCWG06 dated June 2021, 210621 of the Vietnam Business Forum requesting guidance on tax policy for expenses related to services. Covid-21 Units and the business community have made efforts to take measures to overcome difficulties caused by the impact of the Covid-06 epidemic. Regarding tax policy for expenses related to the Covid-2021 epidemic, the Ministry of Finance (Total) Tax Department) has the following comments:

For medical isolation expenses due to the Covid-19 epidemic at home and abroad for business trips abroad (meals, accommodation costs; Covid-19 testing costs; expenses) transportation costs from the place of entry to 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 the competent state agency and the costs of testing for Covid - 19 or buying a test kit for Covid - 19 for employees, the cost of buying equipment for employees to protect employees from the risk of infection during work and the expenses of accommodation and meals of employees staying at enterprises operating under the "3-on-the-spot" plan, these costs will be included in the expenses paid by employees. except for corporate income tax and not included in the employee's personal income taxable income.

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 law.

The Ministry of Finance (General Department of Taxation) notifies the Embassy of the Republic of Korea in Vietnam, the European Business Association in Vietnam and the Vietnam Business Forum to know. During the implementation process, if difficulties arise, please contact the tax office for specific instructions.