According to the provisions of Circular No. 111/2013/TT-BTC of the Ministry of Finance, many allowances and subsidies are included in taxable income and are determined as income from salaries and wages.
However, not all allowances are taxable, below are all allowances without personal income tax in 2020, employees need to know to protect their interests.
Specifically, according to the provisions of Point b, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC, the following allowances and subsidies are not included in personal income taxable income:
Firstly , monthly allowances, preferential allowances and one-time allowances in accordance with the law on incentives for people with meritorious services.
Secondly, a monthly allowance, a one-time allowance for subjects participating in the resistance war, defending the country, performing international missions, and young volunteers who have completed their tasks.
Third , defense and security allowances; subsidies to the armed forces.
Fourth , toxic and dangerous allowances for industries, occupations or jobs in the workplace with toxic and dangerous elements.
Five is , attraction allowance, area allowance.
Sixth , allowance for unexpected difficulties, allowance for labor accident, occupational disease, one-time allowance for childbirth or child adoption, maternity benefit, convalescence and health rehabilitation allowance. post-maternity allowance, benefits due to working capacity reduction, lump-sum retirement allowance, monthly survivorship allowance, severance allowance, job loss allowance, unemployment benefit and other allowances as prescribed of the Labor Code and the Law on Social Insurance.
Seventh , subsidies for the beneficiaries of social protection according to the provisions of law.
Eight , service allowance for senior leaders.
Nine , a one-time allowance for individuals when they move to an area with extremely difficult socio-economic conditions, one-time support for officials and employees working on sovereignty over seas and islands according to regulations. under the law. One-time roaming allowance for foreigners coming to reside in Vietnam, Vietnamese going to work abroad, Vietnamese people residing abroad long-term to work in Vietnam (according to Clause 1, Article 11 of Circular No. 92/2015/TT-BTC).
Ten is , allowance for village health workers.
Eleven is the industry-specific allowance.
In addition, according to the provisions of Point b, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC, allowances and subsidies and levels of allowances and subsidies not included in taxable income must be approved by the agency. Regulatory state authority.
Accordingly, if the guiding documents on allowances, subsidies, allowances and subsidies apply to the State sector, other economic sectors and other business establishments shall be based on the provisions of this Decree. enter the list and levels of allowances and subsidies guided for the State sector for calculation and deduction; in case the allowance or subsidy received is higher than the allowance or subsidy according to the above guidance, the excess must be included in taxable income; especially for the one-time roaming allowance for foreigners arriving residing in Vietnam, Vietnamese going to work abroad shall be deducted according to the rate stated in the labor contract or collective labor agreement.
