What is February 14? Who gives gifts to whom on February 14? Are gifts on February 14 subject to PIT in Vietnam?
What is February 14? Who gives gifts to whom on February 14?
*What is February 14?
February 14 is Valentine's Day, also known as Red Valentine’s Day, which is a special occasion for lovers to express their affection by giving gifts, sending wishes, or organizing romantic activities.
*Who gives gifts to whom on February 14?
- In the Western countries, February 14 is usually an occasion for both men and women to give gifts to each other. People often exchange roses, chocolates, cards, or meaningful gifts.
- In Japan and some Asian countries, women usually give chocolates to men on February 14. Then, on March 14 (White Valentine), men return the gesture with gifts for women.
- In Vietnam, there is no fixed rule for gift-giving, it could be both partners giving gifts to each other, or men may be more proactive in giving gifts to women.
In summary, depending on the country and culture, the style of gift-giving on February 14 varies.
*Distinguishing White Valentine, Red Valentine, and Black Valentine
1. Red Valentine – February 14
- Meaning: This is the traditional day of love, where couples show affection to each other.
- Who gives gifts to whom?
+ In the West: Both men and women exchange gifts.
+ In Japan and some Asian countries: Women give chocolates to men, and on March 14 (White Valentine), men reciprocate with gifts.
+ Popular gifts: Roses, chocolates, cards, souvenirs, romantic dinners…
2. White Valentine – March 14
- Meaning: A day for those who received gifts on February 14 to reciprocate with a gift (traditionally for men to give to women, according to Japanese customs).
- Who gives gifts to whom?:
Usually, men give gifts back to women if they received gifts on February 14.
- Popular gifts: White chocolates, sweets, teddy bears, jewelry…
3. Black Valentine – April 14
- Meaning: A day for singles, particularly popular in South Korea. It is not a sad day but an occasion for those who are single to gather and have fun.
- Who gives gifts to whom?:
There is no specific tradition of giving gifts; mainly singles gather to eat and play with friends.
- Popular gifts: Singles typically eat black bean noodles (Jajangmyeon) as a way to "celebrate" a free life.
What is February 14? Who gives gifts to whom on February 14? Are gifts on February 14 subject to PIT in Vietnam? (Image from the Internet)
Are gifts on February 14 subject to PIT in Vietnam?
Based on Clause 10, Article 2 of Circular 111/2013/TT-BTC regarding taxable PIT income as follows:
Taxable Income
According to Article 3 of the Law on Personal Income Tax and Article 3 of Decree 65/2013/ND-CP, taxable personal income includes:
...
- Income from gifts
Income from gifts is the income of individuals received from organizations and individuals both within and outside the country. To be specific:
a) For gift receipts that are securities, including: shares, share purchase rights, bonds, treasury bills, fund certificates, and other types of securities according to the Securities Law; shares of individuals in joint-stock companies as stipulated by the Enterprise Law.
b) For gift receipts which are portions of capital in economic organizations, business facilities include: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual business facilities, capital in associations, legal funds established according to the law or the entire business facilities if it is a private enterprise, individual business facilities.
c) For gift receipts that are real estate, including: land use rights; land use rights with attached assets; house ownership rights, including future housing; infrastructure and construction works attached to the land, including future construction; land lease rights; water surface lease rights; other income from inheritance that is real estate in all forms; except income from gifts that are real estate guided in point d, clause 1, Article 3 of this Circular.
d) For gift receipts that are other assets required to register ownership or use rights with state management agencies, such as: automobiles; motorbikes, motorcycles; watercrafts, including barges, boats, tugs, push-tows; boats, including yachts; aircraft; hunting rifles, sports guns.
Thus, according to the above regulations, income from gifts on February 14 will be subject to PIT if the February 14 gifts fall into the following asset categories:
- Securities: Shares, share purchase rights, bonds, fund certificates, shares in joint-stock companies.
- Portions of capital: Capital in limited liability companies, cooperatives, partnerships, private enterprises, funds, associations…
- Real estate: Land use rights, houses, construction works, land lease rights, water surface lease rights…
- Other assets required to register ownership/use: Automobiles, motorbikes, watercrafts, yachts, aircraft, hunting rifles, sports guns…
Who is responsible for paying PIT in Vietnam according to current regulations?
Based on Article 2 of the Law on Personal Income Tax 2007 regarding PIT taxpayers as follows:
Personal income tax taxpayers are resident individuals having taxable income specified in Article 3 of the Law on Personal Income Tax 2007 arising within and outside Vietnam, and non-resident individuals having taxable income specified in Article 3 of the Law on Personal Income Tax 2007 arising within the territory of Vietnam.
Where:
- A resident individual is one who meets one of the following conditions:
+ Being present in Vietnam for 183 days or more calculated in a calendar year or for 12 consecutive months from the first day of presence in Vietnam;
+ Having a regular place of residence in Vietnam, including having a registered permanent residence or a leased house in Vietnam according to the lease contract term.
- A non-resident individual is one who does not meet the conditions:
+ Being present in Vietnam for 183 days or more calculated in a calendar year or for 12 consecutive months from the first day of presence in Vietnam;
+ Having a regular place of residence in Vietnam, including having a registered permanent residence or a leased house in Vietnam according to the lease contract term.
