TAXABLE INCOME

TAXABLE INCOME FROM SALARIES OR WAGES

1. Incomes from salaries or wages are incomes received by employees from their employers, including:

a/ Salaries, wages and amounts of salary or wage nature in monetary or nonmonetary form

b/ Allowances and subsidies, except allowances and subsidies prescribed by competent state agencies according to the instructions in Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC August 15, 2013

c/ Remuneration receivable as commission for goods sale agency, brokerage commission, payments for participation in scientific and technical researches; payments for participation in projects or schemes; royalties as prescribed by the law on royalties regime; payments for teaching activities, art and cultural performances, physical training and sports activities; payments for advertising and other services and other payments

d/ Sums of money earned from participation in business associations, boards of directors or control boards of enterprises, project management units, management boards, professional associations and societies and other organizations

e/ Other monetary or non-monetary benefits other than salaries and wages paid by employers to taxpayers in any form:

- House rents, charges for electricity, water and associated services (if any) (Excluded: housing built by employers and provided to workers working at industrial parks free of charge; housing by employers in economic zones and areas with difficult or especially difficult socio-economic conditions is provided free of charge to workers). House rents paid by employers and calculated as taxable income shall be determined according to the actually paid amounts but must not exceed 15% of the total taxable income (exclusive of house rents) received from such employers

- Accumulated premiums of life insurance and other non-compulsory insurance

- Membership fees such as healthcare, recreation, sports, entertainment and beauty care, if such membership cards indicate the name(s) of the user(s). In case such cards are commonly used and do not indicate the names of users, membership fees will not be calculated as taxable income.

- Charges for other services provided to individuals such as healthcare, entertainment, sports, recreation and beauty care, if the payment receipts clearly state the name of the person using the services. In case the service charge payment receipts do not state the name of the person using the service but indicate the employees’ collective as the service user, service charges will not be calculated as taxable income.

- Package payments for stationery, working-trip expenses, telephone, clothes, etc., which are higher than the levels prescribed by current regulations of the State. These package payments are not calculated as taxable income in the following Point đ.4, Clause 2, Article 2 Circular 111/2013/TT-BTC

- Expenses for shuttle buses to take employees to/from workplace is not included in taxable incomes of employees according to rules and regulations of the employer.

- Expenses for training to improve employees’ professional qualifications and skills relevant to their jobs paid by employers on behalf of employees or expenses for training under employers’ plans are not calculated as employees’ incomes.

- Other benefits paid by employers such as payment during weekends or holidays; charges for consultancy or tax declaration services for an individual or a group of individuals; payment for household servants of employees.

f/ Monetary and non-monetary rewards in any form, including bonus securities, except these rewards according to the instructions in Point e, Clause 2, Article 2 of Circular 111/2013/TT-BTC August 15, 2013

g/ Not included in taxable income for items specified at Point g, Clause 2, Article 2 of Circular 111/2013/TT-BTC