How many days off will there be for the 2025 Tet holiday of Vietnam? Is the 2025 Tet holiday's bonus taxable income?

How many days off will there be for the 2025 Tet holiday of Vietnam?

Based on Official Dispatch 8726/VPCP-KGVX dated November 26, 2024, the 2025 Tet holiday schedule for officials and public employees, and workers is specified as follows:

Official Holiday Period:

5 days: From Monday, January 27, 2025 (28th of the Lunar December, Year of the Dragon) to the end of Friday, January 31, 2025 (3rd day of the Lunar New Year, Year of the Snake).

Additional Holiday Period:

Since the 5 official holiday days coincide with weekdays, workers will have an additional 2 weekend days before and 2 weekend days after the official holiday.

Thus, workers will have a total of 9 consecutive days off.

Official Dispatch 8726/VPCP-KGVX dated November 26, 2024...download

How many days off will there be for the 2025 Tet holiday of Vietnam? Is the 2025 Tet holiday's bonus taxable income? (Image from the Internet)

Is the 2025 Tet holiday's bonus taxable income in Vietnam?

Based on point e, clause 2, Article 2 of Circular 111/2013/TT-BTC, the specific regulations on taxable income are as follows:

Taxable Income

...

2. Income from salaries and wages

Income from salaries and wages is considered as income that employees receive from employers, including:

...

e) Bonuses in cash or not in cash in any form, including bonuses in securities, except for the following bonuses:

e.1) Bonuses associated with titles awarded by the State, including bonuses associated with competition titles, various forms of commendation under laws on emulation and commendation, specifically:

e.1.1) Bonuses associated with competition titles such as National Emulation Soldier; Emulation Soldier at Ministry, central agency, central organization, province, and directly administered city levels; Basic Emulation Soldier, Advanced Laborer, Advanced Soldier.

e.1.2) Bonuses associated with commendation forms.

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

e.1.4) Bonuses associated with awards by associations, organizations of Political Organizations, Political-Social Organizations, Social Organizations, Social-Professional Organizations at central and local levels, in accordance with their charter and the Law on Emulation and Commendation.

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

e.1.6) Bonuses associated with commemorative medals, badges.

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

The authority to issue commendation decisions, the amount of bonuses associated with the above emulation titles, and forms of commendation must comply with the Law on Emulation and Commendation.

e.2) Bonuses associated with national and international awards recognized by the Vietnamese State.

e.3) Bonuses related to technical improvements, inventions, that have been recognized by competent state authorities.

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

...

Thus, according to the above regulation, the 2025 Tet holiday bonus is considered an income based on the production and business results that the employer pays the employee during the Tet holiday.

Therefore, in comparison with the above regulations, the 2025 Tet holiday bonus does not fall under the exemption and hence is subject to personal income tax.

What income is exempt from personal income tax in Vietnam?

According to Article 4 of the Personal Income Tax Law 2007 supplemented by clause 3, Article 2 of the Amended Law on Taxation 2014 and amended by Clause 2, Article 1 of the Amended Personal Income Tax Law 2012 provisions on personal income that is exempt from personal income tax include:

- Income from the transfer of real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.

- Income from the transfer of residential houses, residential land use rights, and assets attached to residential land of individuals in cases where individuals have only one residence, one residential land.

- Income from the value of land use rights of individuals being allocated land by the State.

- Income from inheritance, gifts which are real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.

- Income of households and individuals directly engaged in agricultural, forestry production, salt production, breeding, and fishing, which has not been processed into other products or has been traditionally processed.

- Income from agricultural land conversion for households and individuals assigned by the State for production purposes.

- Income from interest on deposits at credit institutions, interest from life insurance contracts.

- Income from remittances.

- Overtime pay, night shift pay which is higher than the daytime pay or regular hours pay as prescribed by law.

- Retirement pensions paid by the Social Insurance Fund; monthly retirement pensions paid by voluntary pension funds.

- Income from scholarships, including:

+ Scholarships obtained from the state budget;

+ Scholarships obtained from domestic and foreign organizations as part of their scholarship support programs.

- Income from life and non-life insurance compensation, industrial accident compensation, state compensation, and other compensations as prescribed by law.

- Income from funds for charitable purposes, allowed or recognized by competent state authorities, operating for charitable, humanitarian purposes, non-profit.

- Income from foreign aid funds for charitable, humanitarian purposes in the form of government and non-government approved by competent state authorities.

- Income from salaries, wages of Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies providing international transport services.

- Income of individuals being ship owners, individuals entitled to use ships, and individuals working on ships from activities directly supplying goods and services for the exploitation and fishing of offshore aquatic resources.