Circular No. 78/2011/TT-BTC dated June 08, 2011 of the Ministry of Finance 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

PERSONAL INCOME TAX IS NOT AMOUNTED TO SEVERE DISEASE TREATMENT AMOUNT

On June 08, 2011, the Ministry of Finance issued the Circular No. 78/2011/TT-BTC 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.

Accordingly, 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 business established under Vietnam legal regulations; business established under foreign laws (below referred to as foreign business) have resident establishments and non-resident establishments in Vietnam; organization established and operated under the Law on Corporative; public non-business unit and non-public non-business unit producing and trading goods and services and organization having production and business activities with incomes.

Receivers from support amounts are people having severe diseases including: labors is working at business; labor’s relatives (parents, wife or husband, children, legal adopted children).

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.

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.