CIRCULAR

GUIDING ON TAXABLE INCOMES ARE NOT ACCOUNTED TO PERSONAL INCOME TAX FOR MEDICAL TREATMENT AMOUNTS FOR LABORS AND LABOR’S RELATIVES FROM EARNINGS AFTER BUSINESS INCOME TAX; BUSINESS’S WELFARE FUNDS AND BENEFIT FUNDS

Pursuant to the Law on Personal Income Tax No. 04/2007/QH12 dated November 21, 2007;

Pursuant to the Decree No. 100/2008/ND-CP dated September 08, 2008 of the Government detailing a number of Articles of the Law on Personal Income Tax;

Pursuant to the Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the Prime Minister’s directives at the Official Dispatch No. 1485/VPCPKTTH dated March 14, 2011 of the Office of Prime on not accounting incomes liable to personal income tax from labor’s salaries and wages and business’s supports to labors and labor’s relative in severe disease treatments.

The Ministry of Finance guides on the implementation as following:

Article 1. Scope of regulation

This Circular regulates not to account to incomes liable to personal income tax from labor’s salaries and wages and business’s supports to labors and labor’s relative in severe disease treatments from earnings after business income tax, business’s welfare funds and benefit funds.

Article 2. Business is allow to extract from earnings after business income taxes; labor’s salaries and wages and business’s supports to labors and labor’s relative in severe disease treatments including:

1. Business established under Vietnam legal regulations;

2. Business established under foreign laws (below referred to as foreign business) has resident establishments and non-resident establishments in Vietnam;

3. Organization established and operated under the Law on Corporative;

4. Public non-business unit and non-public non-business unit producing and trading goods and services;

5. Organization having production and business activities with incomes.

Article 3. Support amount’s receivers:

Receivers from support amounts are people having severe diseases including:

1. Labors is working at business.

2. Labor’s relatives: parents, wife or husband, children, legal adopted children.

Article 4. Bases of supports and support levels for medical treatment:

1. The support level may be part of or overall medical treatment charges for labors and labor’s relatives but the maximum support level cannot exceed the hospital fees of labors and labor’s relatives after extracting the fees from health insurance agency.

2. Business has responsibilities in: saving copies of hospital fee’s records which are confirmed by business (in the case that labor and labor’s relative paid the remaining fee after health insurance agencies pay directly to medical treatment units) or copies of hospital fee’s records; copies of health insurance payment confirmed by business (in the case labor and labor’s relatives pay all hospital fee, health insurance agency will pay health insurance premium to labors and labor’s relatives) together with the payment records for labors and labor’s relatives who are having severe diseases.

Article 5. Implementation provisions:

1. This Circular takes effect after 45 days from June 08, 2011.

2. On the implementation, organizations and individuals can reflect to the Ministry of Finance for detailed guides if having any difficulties./.