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The HCMC Tax Department and ITPC are chairing the formal discussion |
The discussion focused on answering questions of the business community in HCMC regarding corporate income tax exemption and reduction for investment projects to protect the environment; value added tax exemption, reduction, and refund; business licensing fee; the correct procedures to declare and finalize corporate income tax and personal income tax (PIT); preferential policies for corporate income tax; regulations on expenses that are deductible for value added tax.
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Representatives of participating businesses are asking questions in the meeting |
Many participants raised questions whether financial aid expenses, bonuses for male employees when their wife give birth, vehicle parking allowance, and childcare allowance are subject to PIT.
In response, the tax authority said that a one-time allowance when a laborer gives birth and monthly childcare allowance, which is one of the responsibilities of employers as regulated in the Labor Code, are not subject to PIT.
However, the vehicle parking allowance and the bonuses for male employees when their wife give birth are classified as benefits of employees, and thus being listed by employers as an income from salary or wage subject to PIT in order to declare and deduct for this tax as stipulated by the law.
This is the 239th formal discussion between the business community and the municipal authorities. Since 2022, ITPC and the city’s Tax Department have co-hosted 93 such meetings, both online and offline, attracting the participation of nearly 19,000 companies. More than 5,200 questions have been fully answered.
