Vietnamese
On July 22, 2025, the Bac Ninh Tax Department issued Official Dispatch No. 915/BNI-QLDN1 providing guidance on determining taxable personal income (PIT) for mid-shift meal allowances.
According to Official Dispatch 915/BNI-QLDN1:
Clause 2 Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance stipulates that income from wages and salaries includes income received by employees from employers, such as:
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(đ) Benefits in cash or in kind, other than wages and salaries, paid by employers under any form…
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(g) The following amounts are not included in taxable incomes:(g.5) Amounts for mid-shift meals or lunches in case employers provide mid-shift meals or lunches to employees through providing self-cooked meals, purchasing ration packs or issuing ration cards.
If the employer does not organize meals but provides cash instead, such cash payment shall not be included in the taxable income of the employee, provided that the amount complies with the guidance of the Ministry of Labor, Invalids and Social Affairs (MOLISA).
If the cash payment exceeds the level guided by MOLISA, the excess amount shall be subject to PIT.
For state-owned enterprises and agencies under administrative units, the Communist Party, mass organizations, and associations, the meal allowance must not exceed MOLISA's guidance. For non-state enterprises and other organizations, the amount shall be determined by agreement between the unit head and trade union chairperson but must not exceed the level applicable to state-owned enterprises.
Additionally, Clause 9 Article 34 of Decree No. 44/2025/ND-CP dated February 28, 2025 of the Government on labor, wages, remuneration, and bonuses in state-owned enterprises provides:
“9. Mid-shift or quantified meal allowances for employees, executive boards, board members, and controllers shall be implemented in accordance with agreements in collective labor agreements or internal regulations/rules of the enterprise as prescribed by the Labor Code.”
Based on these regulations, in case the company incurs mid-shift meal expenses for employees, if such expenses are clearly specified in terms of eligibility and amount in the labor contract, collective labor agreement, or internal regulations/rules, the PIT treatment from June 15, 2025 onward is as follows:
If the company organizes cooking or purchases meals for employees, such allowances are not subject to PIT.
If the company does not organize meals but pays in cash, and the amount complies with the labor contract, collective agreement, or internal rules, it is not subject to PIT.
If the cash amount exceeds the prescribed level, the excess will be subject to PIT.
The company shall rely on applicable laws and its internal documentation to ensure compliance.
