How to determine taxable income?
Can a business deduct the social and health insurance fees from staff members' salaries when it determines their taxable income?
- Tran Thi Mai, HCM City
According to the Ordinance on Tax for High Income Earners, and the Finance Ministry's Circular 81/2004/TT-BTC dated August 13, 2004, the regular incomes subject to taxation include salaries, wages, overtime payments, lunch and mid-shift meal and different allowances. Incomes that are not subject to taxation are social and health insurance fees that are taken from workers' salaries or wages.
So, the social and health insurance fees paid from salaries or wages are deducted when the taxable income is determined.
- Le Van Chan, lawyer