How to determine the 2025 Tet bonus fund for Vietnamese officials and public employees according to Decree 73? Are 2025 Tet bonuses for Vietnamese officials and public employees taxable?

How to determine the 2025 Tet bonus fund for Vietnamese officials and public employees according to Decree 73?

Based on Clause 4, Article 4 of Decree 73/2024/ND-CP stipulating bonus policies as follows:

Bonus Regime

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4. The annual bonus fund prescribed in this Article is separate from the commendation fund as per the Law on Emulation and Commendation, determined as 10% of the total salary fund (excluding allowances) according to positions, titles, grades, and military ranks of the individuals on the payroll of the agency or unit.

By the end of January 31 of the following year, if the agency or unit does not use up the year's bonus fund, it cannot be transferred to the bonus fund of the next year.

Therefore, the Tet bonus fund for officials under Decree 73 is determined as 10% of the total salary fund (excluding allowances).

How to determine the 2025 Tet bonus fund for Vietnamese officials and public employees according to Decree 73? (Image from the Internet)

Are 2025 Tet bonuses for Vietnamese officials and public employees taxable?

According to point e, clause 2, Article 2 of Circular 111/2013/TT-BTC stipulating as follows:

Taxable Income Components

According to Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable income includes:

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2. Income from salaries and wages

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e) Bonuses in cash or kind in any form, including stock bonuses, except for the following bonuses:

e.1) Bonuses accompanying titles awarded by the State, including bonuses accompanying emulation titles, forms of commendation as per the law on emulation and commendation, specifically:

e.1.1) Bonuses accompanying emulation titles like National Emulation Soldier; Emulation Soldier at Ministry, sector, central union, provincial, city levels under central government; Base-level Emulation Soldier, Advanced Laborers, Advanced Soldiers.

e.1.2) Bonuses accompanying forms of commendation.

e.1.3) Bonuses accompanying titles awarded by the State.

e.1.4) Bonuses accompanying awards given by Associations, organizations belonging to political institutions, political-social organizations, social organizations, and social-professional organizations of central and local levels in accordance with their charters and the law on emulation and commendation.

e.1.5) Bonuses accompanying Ho Chi Minh Awards, State Awards.

e.1.6) Bonuses accompanying Commemorative Medals and Badges.

e.1.7) Bonuses accompanying Certificates of Merit and Commendation Certificates.

The authority to decide on commendation, bonus levels accompanying emulation titles, and forms of commendation above must comply with the Law on Commendation.

e.2) Bonuses accompanying national or international awards recognized by the Vietnamese State.

e.3) Bonuses for technical innovations, inventions, and creations recognized by competent State agencies.

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

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According to regulations, income from salaries and wages includes bonuses (excluding certain exempt bonuses) and is subject to personal income tax.

According to the above regulations, the 2025 Tet bonus is not among the tax-exempt bonuses and will be taxable as personal income tax if the total income reaches the taxable threshold as per current regulations.

Thus, the 2025 Tet bonus for officials and public employees according to Decree 73 must be taxed as personal income tax if the total income after deductions reaches the taxable threshold for personal income tax as per regulations.

See also: How much is the 2025 Tet gift expenditure for officials and public employees in Ho Chi Minh City?

What is the 2025 Tet holiday schedule for Vietnamese officials and public employees?

Based on Notification 6150/TB-BLDTBXH 2024 by the Ministry of Labor, Invalids, and Social Affairs implementing the Prime Minister's directive in Official Dispatch No. 8726/VPCP-KGVX 2024 regarding the Lunar New Year 2025 holiday schedule for officials and public employees and workers as follows:

1. Officials and public employees, and workers of administrative agencies, career organizations, political institutions, and political-social organizations (hereafter referred to as officials and public employees) are entitled to the Lunar New Year holidays in 2025 from Saturday, January 25, 2025 (equivalent to December 26 of the Year of the Dragon) to the end of Sunday, February 2, 2025 (equivalent to January 5 of the Year of the Snake). This period includes 5 Lunar New Year holidays and 4 weekly rest days.

2. Civil servants and public employees are entitled to the National Day holiday in 2025 from Saturday, August 30, 2025, to the end of Tuesday, September 2, 2025. This period includes 2 National Day holidays and 2 weekly rest days.

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The Lunar New Year 2025 holiday schedule for officials and public employees is a continuous 9-day holiday comprised of 5 Tet holidays and 4 weekly rest days. Specifically:

Civil servants and public employees are entitled to 5 days off for Tet from Monday, January 27, 2025, to Friday, January 31, 2025 (equivalent to December 28 of the Year of the Dragon to January 3 of the Year of the Snake).

However, since in 2025, all 5 Tet holidays fall on working days of the week, employees will get an additional 2 weekend days before and 2 weekend days after the Tet holidays.

Therefore, the 2025 Lunar New Year holiday schedule for officials and public employees totals 9 continuous days starting from January 25, 2025, to February 2, 2025 (from December 26 to the end of January 5).