You company is reaching a certain level of turnover and therefore the optimization and planning work is getting more interesting and intensive.
Because you have met a certain number of criteria, there are 4 main benefits to foreign labor that is worth mentioning.
1/ One flight “home” can be purchased and deducted per year for the employee. This will be deductible and not subject to PIT.
2/ Extra insurances (life, capital, complementary health, accidents, etc.) can be purchased, those have different level of deductibility both for PIT and CIT. So please let us know if you wish to get some, we will get back to you with a complete simulation.
3/ Housing allowances are compensated by an extra PIT amounting to 15% of the declared salary. For instance, you rent a house with a monthly rent of 500.000.000VND, and your salary is 10.000.000VND, the extra PIT you will pay for received that benefit will be maximum 1.500.000VND. If your rent is less than the salary, 15% is calculated based on your rent. Only when the rent is over the salary, we will count 15% on the salary. The rent is totally deductible for CIT.
4/ School for foreign employees’ children. The tuition fees are totally deductible both from CIT and PIT.
1/ company must be profitable
2/ individual receiving the benefit must be a foreigner resident duly declared on the company payroll and paying social security and health insurance.
Do not hesitate to contact us for more information!