For many years, the maximum mid-shift meal allowance of VND 730,000 per person per month had been commonly applied by enterprises as the benchmark to ensure compliance for personal income tax (PIT) purposes. However, this mechanism was officially changed in 2025.
On 28 April 2025, the Ministry of Home Affairs issued Circular No. 003/2025/TT-BNV, repealing in full Circular No. 26/2016/TT-BLDTBXH. This means that:
From 15 June 2025, there is no longer any legal document prescribing a maximum cap for mid-shift meal allowances.
Enterprises are entitled to design and determine the allowance level in line with their working conditions and internal welfare policies.
While this change grants enterprises greater autonomy, it also raises a number of practical questions:
What level of allowance is considered “reasonable” to avoid being subject to PIT?
If the allowance is high, which portion may be at risk of being treated as taxable income?
In the absence of guidance from the Ministry of Labour, what criteria will be used to assess “reasonableness”?
On 12 November 2025, the Tax Authority issued Official Letter No. 5106/CT-CS, citing Official Letter No. 1387/CTL&BHXH-TLSXKD of the Department of Wages and Social Insurance, clarifying the interpretation and application of the mid-shift meal policy as follows:
(1) From 1 August 2025 onward: Mid-shift meal regimes are governed by the Labour Code
→ Enterprises have full discretion to determine the allowance level, provided that it is clearly agreed in writing and properly stipulated in labour contracts, collective bargaining agreements, or internal regulations in accordance with the Labour Code.
(2) PIT treatment: Mid-shift meal allowances are PIT-exempt if the level is “reasonable”
The Tax Authority does not set a new cap nor reinstate any fixed limit, but instead applies the following principles:
The allowance must be reasonable and proportionate to actual working conditions.
The allowance must be formally prescribed in internal documents (collective agreements, internal regulations, labour contracts, etc.).
Enterprises must maintain adequate supporting documents to substantiate the payment and the beneficiaries.
There must be no indication of abuse of the policy to disguise taxable income.
→ The tax authorities adopt a principle-based approach of “reasonableness with supporting grounds”, rather than applying a rigid numerical threshold.
As no new statutory cap is prescribed, a reasonable allowance level will depend on factors such as the nature of the industry, working conditions, local meal price benchmarks, and the enterprise’s welfare policies.
Key requirements include:
The enterprise must be able to justify the reasonableness of the allowance level;
The allowance must be clearly stipulated in internal documents;
Complete and transparent documentation must be maintained for tax finalisation purposes.
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