On October 27th, 2021, the Ministry of Finance (General Department of Taxation) issued Official Letter No. 4110/TCT-DNNCN guiding the tax treatment on employees’ expenses related to Covid-19, as follows:
- Quarantine expenses under the current situation of Covid-19 in Vietnam and in foreign countries for the case of overseas business trips: meal, accommodation, Covid-19 testing, picking up when immigrating into Vietnam or from the place where the individuals are required to travel to the quarantine places, other costs of living during the quarantine medical period, etc. to follow requirements of relevant authorities;
- Expenses for testing Covid-19 or buying Covid-19 testing kits for employees, costs for buying protective facilities for employees against the risk of infection during work; and
- Meal and accommodation expenses of employees staying at enterprises operating under the "3 spot" option.
These expenses would be treated as deductible expenses for corporate income tax and non-taxable for personal income tax.
Note: the above expenses reflect the actual arising and have all invoices and documents in accordance with the provisions of law.