How many weeks are there until the 2025 Tet holiday of Vietnam? Is the salary for working during Tet holiday exempt from personal income tax?

How many weeks are there until the 2025 Tet holiday of Vietnam?

Tet holiday, also known as the Lunar Calendar New Year or Traditional Tet, is the most significant holiday in Vietnamese culture. It marks the transition between the old year and the new year according to the lunar calendar, usually falling in late January or early February on the solar calendar.

For the Tet holiday 2025, the first day of Tet falls on January 29, 2025. Therefore, today is November 27, 2024, so there are approximately 9 weeks until the Tet holiday 2025.

Note: Content is for reference only.

How many weeks are there until the 2025 Tet holiday of Vietnam? Is the salary for working during Tet holiday exempt from personal income tax? (Image from the Internet)

Is the salary for working during Tet holiday exempt from personal income tax in Vietnam?

According to point i, clause 1, Article 3 of Circular 111/2013/TT-BTC stipulating tax-exempt income as follows:

Tax-exempt income

1. Pursuant to the provisions of Article 4 of the Law on Personal Income Tax, Article 4 of Decree No. 65/2013/ND-CP, tax-exempt income includes:

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i) Income from night work, overtime pay which is higher than day work, regular working hours in accordance with the Labor Code.

i.1) The portion of salary, wages paid higher for night work, overtime is exempt from tax, based on the actual salary, wages paid for night work, overtime minus (-) the salary and wages calculated for normal working days.

Example 2: Mr. A has normal day work wages under the Labor Code regulation of 40,000 VND/hour.

- In cases where an individual works overtime on normal days, and the individual is paid 60,000 VND/hour, the tax-exempt income is:

60,000 VND/hour – 40,000 VND/hour = 20,000 VND/hour

- In cases where an individual works overtime on weekends or holidays, and the individual is paid 80,000 VND/hour, the tax-exempt income is:

80,000 VND/hour – 40,000 VND/hour = 40,000 VND/hour

i.2) Organizations, individuals paying income must prepare a detailed list reflecting the time of night work, overtime, and additional wages paid for these, which should be kept at the income paying unit and presented upon request by the tax authority.

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Therefore, salaries for working during Tet are only exempt from PIT for the portion of income from wages paid higher than day work, regular working hours as stated in the Labor Code. The part of the salary for normal day work will still be subject to PIT.

What is taxable income for PIT in Vietnam?

Based on Article 3 of the Law on Personal Income Tax 2007 (amended by clause 1, Article 2 of the Law on amendments and supplements of some articles of the Laws on Taxation 2014, clause 1, Article 1 and clause 2, Article 2 of the Law amending and supplementing some articles of the Law on Personal Income Tax 2012) stipulate taxable income for PIT as follows:

- Income from business activities, including:

+ Income from goods production and business activities, services;

+ Income from independent professional activities of individuals with licenses or practicing certificates as prescribed by law.

- Income from wages, salaries, including:

+ Salaries, wages and allowances of a salary, wage nature;

+ Allowances, assistance, except for those as per legal provisions granting preferential treatment to people with meritorious services; national defense, security allowances; allowances for hazardous, dangerous jobs or workplaces with hazardous, dangerous factors; attraction allowance, regional allowance as per legal provisions; sudden difficulty support, occupational accident, occupational disease allowance, one-time support for childbirth or adoption of children, allowance due to labor ability reduction, one-time retirement allowance, monthly pensions and other allowances in compliance with social insurance laws; severance and job-loss allowance as per the Labor Code; social protection assistance and other allowances not of a salary, wage nature as stipulated by the Government of Vietnam.

- Income from capital investment, including:

+ Interest from loans;

+ Dividend income;

+ Income from other forms of capital investment, excluding income from Government of Vietnam bond interest.

- Income from capital transfer, including:

+ Income from the transfer of capital portions in economic organizations;

+ Income from securities transfer;

+ Income from capital transfer under other forms.

- Income from real estate transfer, including:

+ Income from the transfer of land use rights and assets attached to land;

+ Income from the transfer of ownership or use rights of houses;

+ Income from the transfer of land lease rights, water surface lease rights;

+ Other incomes from real estate transfer in any form.

- Income from winnings, including:

+ Lottery winnings;

+ Prize winnings from promotion activities;

+ Prize winnings from betting activities;

+ Winnings from games, contests with prizes and other winning forms.

- Income from royalties, including:

+ Income from transfer, transfer of use rights in intellectual property rights;

+ Income from technology transfer.

- Income from franchise activities.

- Incomes from inheritance received as securities, capital contributions in economic organizations, business establishments, real estates and other assets requiring ownership or use registration.

- Incomes from gifts received as securities, capital contributions in economic organizations, business establishments, real estates and other assets requiring ownership or use registration.