How not to be disadvantaged when receiving subsidies and allowances?

Paying personal income tax on benefits is disadvantageous for workers, so how can they not be damaged when receiving these payments?

Allowances and benefits such as food, phone, business travel expenses, etc. are still subject to personal income tax (PIT) when included in the employee's sole income.

However, reasonable allocation in accordance with legal regulations will help employees avoid paying personal income tax on these expenses, avoiding damage.

Illustration photo.

TAccording to current law, many allowances and subsidies will be deducted before calculating personal income tax.For example:

Business trip allowance:According to Clause 2.9, Article 4 of Circular 96/2015/TT-BTC, regulations on conditions for receiving and levels of business trip allowance.

Clothing allowance:This issue is stated in Clause 2.7, Article 4 of Circular 96/2015/TT-BTC. Accordingly, the cost of clothing in kind for employees does not have invoices or documents. The cost of clothing in cash for employees exceeds 5 million VND/person/year.

In case an enterprise spends on uniforms in both cash and kind for employees to be counted as deductible expenses, the maximum amount of cash expenses must not exceed 5 million VND/person/year, and in-kind expenses must have invoices and documents.

For specific business sectors, this cost is implemented according to specific regulations of the Ministry of Finance.

For mid-shift meal allowance:Clause 4, Article 25 of Circular 27/2016/TT-BLDTBXH stipulates that the company shall pay for mid-shift meals for company managers not exceeding VND 730,000/person/month.

The implementation of the mid-shift meal regime is guided by Circular No. 22/2008/TT-BLDTBXH dated October 15, 2008 of the Ministry of Labor, War Invalids and Social Affairs guiding the implementation of the mid-shift meal regime in state-owned enterprises.

For phone allowance,Currently, current laws do not clearly regulate this issue, only stipulating that allowances must clearly state the conditions and levels of enjoyment in the labor contract or regulations of the company or enterprise.

Therefore, accountants need to allocate employees' income in accordance with reality and legal regulations to ensure maximum benefits for employees./.

According to VOV