From December 25, 2024, is the annual bonus of officers and professional servicemen subject to personal income tax in Vietnam?

From December 25, 2024, is the annual bonus of officers and professional servicemen subject to personal income tax in Vietnam?

Based on Clause 4, Article 3 of Circular 95/2024/TT-BQP (effective from December 25, 2024), regulations concerning the annual bonus policies are as follows:

annual bonus Regime

1. Bonus Criteria

Subjects specified in Clauses 1 and 2, Article 2 of this Circular are entitled to the annual bonus policies when evaluated and classified by the competent authorities from the level of task completion or higher. The evaluation and classification of task completion are conducted according to the State and Ministry of National Defense regulations.

2. Bonus Amount

a) For individuals evaluated and classified as having excellently completed tasks: In 2024, the bonus is equal to 4 times the statutory pay rate; from 2025 onward, the bonus is equal to 8 times the statutory pay rate.

b) For individuals evaluated and classified as having well completed tasks: In 2024, the bonus is equal to 3.5 times the statutory pay rate; from 2025 onward, the bonus is equal to 7 times the statutory pay rate.

c) For individuals evaluated and classified as having completed tasks: In 2024, the bonus is equal to 1.5 times the statutory pay rate; from 2025 onward, the bonus is equal to 3 times the statutory pay rate.

d) For individuals specified in Clause 1 of this Article, if they receive salaries from the state budget for 7 months or more in a year: The bonus is equal to the amount specified in points a, b, and c of this clause; if they receive salaries from the state budget for less than 7 months: The bonus is ½ of the amount specified in points a, b, and c.

3. Subjects specified in Article 2 of this Circular are entitled to the annual bonus policies only once a year.

4. The bonuses specified in this Article are subject to personal income tax according to legal provisions and are not used to calculate social insurance or health insurance contributions.

Therefore, according to the above regulations, the annual bonus for officers and professional servicemen is income subject to personal income tax according to the law, and is not used for calculating social insurance or health insurance contributions.

From December 25, 2024, is the annual bonus of officers and professional servicemen subject to personal income tax in Vietnam? (Image from the Internet)

What is the amount of the annual bonus for officers and professional servicemen in Vietnam from December 25, 2024?

According to Clause 2, Article 3 of Circular 95/2024/TT-BQP, the amount of the annual bonus for officers and professional servicemen from December 25, 2024, is as follows:

(1) For individuals evaluated and classified as having excellently completed tasks: In 2024, the bonus is equal to 4 times the statutory pay rate; from 2025 onward, the bonus is equal to 8 times the statutory pay rate.

(2) For individuals evaluated and classified as having well completed tasks: In 2024, the bonus is equal to 3.5 times the statutory pay rate; from 2025 onward, the bonus is equal to 7 times the statutory pay rate.

(3) For individuals evaluated and classified as having completed tasks: In 2024, the bonus is equal to 1.5 times the statutory pay rate; from 2025 onward, the bonus is equal to 3 times the statutory pay rate.

Note:

- For subjects specified in Clause 1, Article 3 of Circular 95/2024/TT-BQP, if they receive salaries from the state budget for 7 months or more in a year: The bonus is equal to the amount specified in (1), (2), and (3); if they receive salaries from the state budget for less than 7 months: The bonus is 1/2 of the amount specified in (1), (2), and (3).

- Subjects specified in Article 2 of Circular 95/2024/TT-BQP are entitled to annual bonus policies only once a year.

From where is the funding for the annual bonus policies of officers and professional servicemen ensured?

According to Clause 1, Article 6 of Circular 95/2024/TT-BQP, the regulations regarding funding assurance are as follows:

Funding Assurance

1. Funding for the bonus policies specified in this Circular is ensured from the state budget regularly distributed for national defense; accounted as follows:

a) Funding for annual bonuses: Section 6200, Subsection 6201, Entry 00, Sector 00.

b) Funding for extraordinary bonuses: Section 6200, Subsection 6201, Entry 00, Sector 00.

2. Budgeting, execution, accounting, and settlement of state budget expenditures on bonus policies are performed according to the current regulations of the State and the Ministry of National Defense.

Funding for the annual bonus policies of officers and professional servicemen is ensured from the state budget regularly distributed for national defense; accounted as follows:

- Funding for annual bonuses: Section 6200, Subsection 6201, Entry 00, Sector 00.

- Funding for extraordinary bonuses: Section 6200, Subsection 6201, Entry 00, Sector 00.

Do officers of the People's Army declare assets and income in Vietnam?

According to Article 34 of the Anti-Corruption Law 2018 (amended by Clause 3, Article 217 of the Enterprise Law 2020), the regulations on individuals obligated to declare assets and income are as follows:

Individuals Obligated to Declare Assets and Income

1. Officials and officers.

2. Officers of the People's Public Security; officers of the People's Army, professional servicemen.

3. Individuals holding positions from Deputy Head of Department and equivalent or higher at public service providers, enterprises in which the State owns 100% charter capital, individuals appointed as representatives of state capital in enterprises.

4. Candidates for the National Assembly, candidates for the People's Council.

Therefore, officers of the People's Army are among the subjects obligated to declare assets and income.