Can an employer give Tet bonuses in gold in Vietnam? Do employees who receive Tet bonuses in gold have to pay personal income tax in Vietnam?

Can an employer give Tet bonuses in gold in Vietnam?

Based on Article 104 of the Labor Code 2019 regarding bonuses, it stipulates as follows:

Bonus

1. A bonus is an amount of money, assets, or other forms given by an employer to employees based on production, business results, and the job completion level of the employee.

2. The bonus regulation is determined by the employer and publicly announced at the workplace after consultation with the representative labor organization at the establishment where such an organization exists.

Therefore, based on the aforementioned regulation, an employer is permitted to give Tet bonuses in gold to employees, as giving gold as a bonus does not violate any legal regulations.

Can an employer give Tet bonuses in gold in Vietnam? Do employees who receive Tet bonuses in gold have to pay personal income tax in Vietnam? (Image from the Internet)

Do employees who receive Tet bonuses in gold have to pay personal income tax in Vietnam?

Based on point e, clause 2, Article 2 of Circular 111/2013/TT-BTC, it provides:

Taxable Income Items

As specified in Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:

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2. Income from wages, salaries

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e) Bonuses in money or non-monetary form under any form, including stock bonuses, except for the following bonuses:

e.1) Bonuses associated with titles awarded by the State, including bonuses for award titles, forms of commendation in accordance with the law on competition and commendation, specifically:

e.1.1) Bonuses associated with emulation titles such as National Emulation Fighter; Emulation Fighter of Ministries, Agencies, Central committees, provinces, cities under Central authority; Basic Emulation Fighter, Advanced Laborer, Advanced Soldier.

e.1.2) Bonuses associated with forms of commendation.

e.1.3) Bonuses associated with titles awarded by the State.

e.1.4) Bonuses associated with awards given by Associations, organizations under Political organizations, Socio-political organizations, Social organizations, Socio-professional organizations at Central and local levels appropriate to the charter of such organization and in accordance with the Law on Emulation and Commendation.

e.1.5) Bonuses associated with the Ho Chi Minh Prize, State Prize.

e.1.6) Bonuses associated with Commemorative Medals, Badges.

e.1.7) Bonuses associated with Certificates of Merit, Commendations.

The authority to issue commendation decisions, the bonus amount associated with emulation titles, forms of commendation mentioned above must comply with the law on competition and commendation.

e.2) Bonuses associated with national awards, international awards recognized by the Government of Vietnam.

e.3) Bonuses for technical improvements, inventions, and innovations recognized by a competent State agency.

e.4) Bonuses for detecting and reporting legal violations to a competent State agency.

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g) Not included in taxable income are the following items:

g.1) Support amount from the employer for serious illness treatment for the employee and their relatives.

g.1.1) Relatives of the employee in this case include: biological children, legally adopted children, extramarital children, stepchildren of the husband or wife; husband or wife; biological parents; parents-in-law (or parents of the husband); stepfather, stepmother; legal adoptive parents.

g.1.2) The support amount not included in taxable income is the actual amount paid according to hospital fee receipts but does not exceed the amount paid by the employee and their relatives after deducting the amount paid by the insurance organization.

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Therefore, employees who receive Tet bonuses in gold are not among the bonus items exempted from personal income tax. Hence, employees must pay personal income tax if their total income reaches the taxable limit.

What are cases where employees are entitled to personal income tax refunds in Vietnam?

According to Article 8 of the Personal Income Tax Law 2007, the management of tax and tax refunds is stipulated as follows:

Tax Management and Tax Refunds

1. Taxpayer registration, declaration, deduction, payment, finalization, refund, handling of legal violations concerning tax, and other tax management measures shall be implemented in accordance with the law on tax management.

2. Individuals are entitled to tax refunds in the following cases:

a) The amount of tax paid is greater than the amount of tax payable;

b) Individuals who have paid tax but have taxable income below the taxable level;

c) Other cases as decided by competent state authorities.

Thus, individuals are entitled to personal income tax refunds when they meet one of the following conditions:

- The amount of tax paid is greater than the amount of tax payable;

- Individuals have paid tax but have taxable income below the taxable level;

- Other cases as decided by competent state authorities.