What are extraordinary bonus levels for professional servicemen in Vietnam in 2025? Are extraordinary bonuses for professional servicemen subject to personal income tax in Vietnam?

What are extraordinary bonus levels for professional servicemen in Vietnam in 2025?

Pursuant to Article 4 of Circular 95/2024/TT-BQP, the extraordinary bonus levels for professional servicemen in 2025 are regulated as follows:

(1) Bonus Criteria

Individuals eligible for extraordinary bonus policies when achieving unexpected work achievements in unforeseen circumstances, occurring outside of plans or beyond the regular duties assigned to them include:

- Officers, professional servicemen, defense workers, public employees in defense, and officials working in the Army (defense officials).

- People involved in cryptographic work and other activities in cryptographic organizations at the Government Cryptography Committee.

(2) extraordinary bonus Levels

- The bonus levels for cases specified in (1) are implemented according to the extraordinary bonus regulations of the Ministry of Defense.

- In case an individual achieves sudden work accomplishments as specified in (1) and is considered for a rank promotion, salary raise ahead of schedule by competent authorities but has already held the highest rank for their position or the final salary grade in the current salary category, or if achievements are preserved but there isn't enough time to get a rank promotion, salary raise ahead of schedule, or if they simultaneously achieve other accomplishments qualifying for a rank promotion, salary raise ahead of schedule, they may be considered for an additional bonus equivalent to one month's salary used as the basis for social insurance contributions at the time of achieving the sudden work accomplishment.

- In cases where multiple levels of bonuses are met, only the highest bonus level shall be awarded.

(3) The extraordinary bonus regime does not apply to individuals receiving accolades under the regulations of the Merit and Reward Law 2020 with forms such as: commendation for service; commendation in achievement movements; commendation for dedication process; periodic commendation; external commendation; commendation in periodic and topic summary tasks.

What are procedures and payment process for extraordinary bonus in Vietnam?

Based on clause 2 Article 5 of Circular 95/2024/TT-BQP, the procedures and payment process for extraordinary bonuses are carried out according to the extraordinary bonus Regulation of the Ministry of Defense. Additionally, as per Article 6 of Circular 95/2024/TT-BQP, the following regulations apply:

- Funding for implementing bonus policies is ensured by the regular state budget for national defense.

- The financing for the payment of extraordinary bonuses is accounted as follows: Item 6200, Sub-item 6201, Detail 00, Sector 00.

- The estimation, execution, accounting, and final settlement of the bonus policy budget are implemented in accordance with current state and Ministry of Defense regulations.

Are extraordinary bonuses for professional servicemen in 2025 subject to personal income tax in Vietnam?

Pursuant to point e, clause 2, Article 2 of Circular 111/2013/TT-BTC which regulates taxable incomes as follows:

Taxable Income

Under the provisions of Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal incomes include:

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2. Income from salaries, wages

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e) Bonuses in cash or in kind in all forms, including stock rewards, excluding the following bonuses:

e.1) Bonuses accompanying titles conferred by the State, including bonuses accompanying emulation titles, commendations as regulated by the law on emulation and commendation, specifically:

e.1.1) Bonuses accompanying emulation titles such as National Emulation Fighter; Emulation Fighter at the level of Ministry, central agencies, provinces, cities under central authority; Basic Emulation Fighter, Advanced Laborer, Advanced Soldier.

e.1.2) Bonuses accompanying forms of commendation.

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

e.1.4) Bonuses accompanying awards by Associations, organizations belonging to political organizations, political-social organizations, social organizations, socio-professional organizations of central and local levels in accordance with the charter of these organizations and in accordance with the regulations of the Emulation and Commendation Law.

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

e.1.6) Bonuses accompanying Commemorative Medals, Insignias.

e.1.7) Bonuses accompanying Certificates of Merit, Commendation Letters.

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

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

e.3) Bonuses for technical improvements, inventions, innovations recognized by competent state agencies.

e.4) Bonuses for reporting violations of law to competent state authorities.

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Thus, extraordinary bonuses for professional servicemen are subject to personal income tax as they do not fall under the exempt categories.