Personal income tax for health insurance
VCN – Health insurance that employers buy for employees would not count towards employees personal income tax.
According to the General Department of Taxation, in the Circular No.111/2013 / TT-BTC dated 15/8/2013 of the Ministry of Finance guiding the implementation of the Personal Income Tax Law, the Law on amending and supplementing some articles of Personal Income Tax (PIT) and Decree No. 65/2013 / ND-CP of the Government stipulating some articles of the PIT Law and the Law on amending and supplementing a number of articles of the PIT Law that guiding on the following taxable incomes:
The nummary benefits or non-nummary that is different from salaries or wages paid by employers shall be paid to taxpayers in any form.
The premium for the purchase of life insurance, other optional insurances, and voluntary retirement funds bought by employers or contributed to employees for insurance products that accrue charges on insurance fees.
Additionally, in the Circular No. 92/2015 / TT-BTC dated 15/6/2015 of the Ministry of Finance guiding the implementation of some amendments and supplements to PIT in Decree No. 12/2015 / ND- CP dated 12/2/2015 of the Government on stipulating the implementation of the Law on amending and supplementing some articles of the Tax Decree. It stated clearly that the case of employers who buy insurance products for employees are not required to have accumulated insurance premiums (including those purchased from insurance enterprises who are not established and operate in Vietnam, are allowed to run a business in Vietnam), the premium for the purchase of this insurance product shall not be included in the PIT liable income of the employee.
Accordingly, based on the above guidance, the health insurance (the insurance does not compulsorily accrue insurance premiums) that employers buy for employees are not included in income subjected to personal income labor tax.