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

THE MINISTRY OF FINANCE

Circular No. 78/2011/TT-BTC of June 8, 2011, guiding the non-calculation as incomes liable to personal income tax of financial support for examination and treatment of fatal diseases for employees and their relatives, which come from after-enterprise income tax incomes, welfare funds and reward funds of enterprises

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

Pursuant to the Government’s Decree No. 100/2008/ND-CP of September 8, 2008, detailing a number of articles of the Law on Personal Income Tax;

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

In implementing the Prime Minister’s directions in the Government Office’s Official Letter No. 1485/VPCP-KTTH of March 14, 2011, on the non-calculation as incomes from wages or remunerations of employees liable to personal income tax of financial supports for examination and treatment of fatal diseases for employees and their relatives;

The Ministry of Finance guides the implementation as follows:

Article 1. Scope of regulation

This Circular provides non-calculation as incomes from wages or remunerations of employees liable to personal income tax of financial support for examination and treatment of fatal diseases for employees and their relatives, which come from after-enterprise income tax incomes, welfare funds and reward funds of enterprises.

Article 2. The following enterprises may earmark from their after-enterprise income tax incomes, welfare funds and reward funds financial support for their employees and these employees’ relatives who suffer from fatal diseases:

1. Enterprises established under the Vietnamese law;

2. Enterprises established under foreign laws (referred to as foreign enterprises) with or without permanent establishments in Vietnam;

3. Organizations established and operating under the Law on Cooperatives;

4. Public or non-public non-business units producing and trading in goods or commercially providing services;

5. Organizations engaged in income-generating production or business activities.

Article 3. Persons eligible for financial support

Eligible for financial support of enterprises are persons suffer from fatal diseases, including:

1. Employees of enterprises.

2. Relatives of employees: Blood parents; spouses; blood children, lawfully adopted children.

Article 4. Bases for provision and level of financial support for medical examination and treatment

1. The financial support might be part or the whole of expenses for medical examination and treatment for employees and their relatives but must not exceed hospital fee amounts paid by employees and their relatives after subtracting insurance sums paid by the health insurance agency.

2. Enterprises providing financial support shall keep copies of hospital fee payment receipts bearing their certification (in case employees and their relatives pay the remainder of hospital fee after the health insurance agency pays the hospital fee directly to the medical examination and treatment establishment) or copies of hospital fee payment receipts; copies of documents on payment of health insurance sums bearing enterprises’ certification (in case employees and their relatives pay the whole hospital fee and the health insurance agency pays health insurance sums to employees and their relatives) together with documents on provision of financial supports for employees and their relatives suffering from fatal diseases.

Article 5. Organization of implementation

1. This Circular takes effect 45 days from June 8, 2011.

2. Any problems arising in the course of implementation should be reported by organizations and individuals to the Ministry of Finance for specific guidance.-

For the Minister of Finance
Deputy Minister
DO HOANG ANH TUAN