How many days until Gregorian New Year in 2025? Is additional income during the Gregorian New Year subject to personal income tax?

Vietnam: How many days until Gregorian New Year 2025?

Gregorian New Year 2025, January 1, 2025, falls on a Wednesday. Today is November 8, 2024, and excluding today, there are 53 days left until Gregorian New Year 2025.

Is the extra income earned during Gregorian New Year 2025 subject to personal income tax in Vietnam?

Pursuant to Article 98 of the Labor Code 2019, regulation on overtime wages is as follows:

Overtime and Night Work Wages

1. Employees working overtime are paid wages calculated based on the wage unit price or the actual wage paid for the current job as follows:

a) On regular days, at least 150%;

b) On weekly rest days, at least 200%;

c) On holidays, Gregorian New Year, and paid leave days, at least 300%, excluding the holiday, Gregorian New Year, and paid leave wages particularly for those on daily wages.

2. Employees working at night shall receive an additional payment of at least 30% of the wage calculated based on the wage unit price or the actual wage paid for the normal working day.

3. Employees working overtime at night, in addition to wages mentioned in clauses 1 and 2 of this Article, are entitled to an extra 20% of the wage calculated based on the wage unit price or actual wage for the day work during a normal day, weekly rest day, or public holiday, Gregorian New Year.

4. The Government of Vietnam details this Article.

Additionally, clause 9 Article 4 of the Personal Income Tax Law 2007 states:

Income Exempt from Tax

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

8. Income from remittances.

9. Part of the wages for night work, overtime paid higher than regular working hours wages according to legal regulations.

10. Pensions paid by Social Insurance.

11. Income from scholarships, including:

a) Scholarships received from the state budget;

b) Scholarships received from domestic and international organizations according to their scholarship support programs.

12. Income from compensation for life and non-life insurance contracts, compensation for occupational accidents, state compensations, and others according to legal regulations.

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From the above provisions, it can be concluded that employees working overtime during Gregorian New Year shall be paid at least 300% of the wage calculated by ordinary income rates (excluding paid holiday wages), and the employee is exempt from personal income tax for the part of the wage paid higher than the standard working day wage.

How many days until Gregorian New Year 2025? Is the extra income earned during Gregorian New Year subject to personal income tax in Vietnam? (Image from the Internet)

Does taxable personal income from wages include health insurance contributions in Vietnam?

According to clause 1, Article 21 of the Personal Income Tax Law 2007, amended by clause 5, Article 1 of the Amended Personal Income Tax Law 2012, taxable personal income from wages is the total taxable income after subtracting social insurance, health insurance, unemployment insurance, professional liability insurance for certain professions subjected to compulsory insurance, voluntary pension fund contributions, and deductions as prescribed in Articles 19 and 20 of the Personal Income Tax Law 2007.

As such, taxable personal income from wages does not include health insurance contributions.

When is the time for calculating taxable personal income from wages in Vietnam?

Based on clause 2, Article 8 of Circular 111/2013/TT-BTC which provides guidelines for taxable income from wages and salaries:

Determining Taxable Income from Business Activities, Wages, and Salaries

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2. Taxable income from wages, salaries

a) Taxable income from wages, salaries is determined by the total amount of wages, salaries, remuneration, other income of a wage or salary nature received by the taxpayer during the tax calculation period according to guidance in clause 2, Article 2 of this Circular.

b) Time of determination of taxable income.

The time of determination of taxable income for wages, salaries is at the time when organizations or individuals pay income to the taxpayers.

For the time of determining taxable income for insurance product premiums with accumulation according to the guidance at point đ.2, clause 2, Article 2 of this Circular, it is the time the insurer or the voluntary pension fund management company pays the insurance money.

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Therefore, the time for determining taxable personal income from wages is when the organization or individual pays the income to the taxpayer. Specifically, the time for determining taxable income for accumulated insurance product premiums is when the insurer or the voluntary pension fund management company pays the insurance.