According to Clause 2 Article 2 of Circular No. 111/2013/TT-BTC , it is only exempt from PIT on severance pay paid in accordance with the Labor Code and the Law on Social insurance.
Accordingly, in case a company additionally pays allowances for an employee to find a new job (apart from the severance paid under the Labor Code) and such allowances are paid before the employee officially stops working for the company, the company has to add the allowances to salary in order to withhold tax according to the progressive tax table.
|Published||Vietlaw's Newsletter No. 447|