What is the official Lunar New Year holiday schedule in Vietnam in 2025? Is salary for working during Lunar New Year 2025 subject to personal income tax in Vietnam?

What is the official Lunar New Year holiday schedule in Vietnam in 2025?

The Ministry of Labor, Invalids and Social Affairs has issued Announcement 6150/TB-BLDTBXH of 2024 regarding the Lunar New Year, National Day, Victory Day April 30, and International Labor Day May 1, 2025, holidays for officials and public employees and workers.

The nationwide Lunar New Year 2025 holiday schedule is as follows:

- Officials and public employees and workers of administrative, non-business agencies, political organizations, and socio-political organizations (hereinafter referred to as officials and public employees) will have the Lunar New Year 2025 holiday from Saturday, January 25, 2025 (equivalent to the 26th day of the 12th month in the year of Giap Thin) to the end of Sunday, February 2, 2025 (equivalent to the 5th day of the 1st month in the year of At Ty). This includes 5 Lunar New Year holiday days and 4 regular weekly days off.

- Agencies and units that do not follow a fixed schedule of Saturdays and Sundays off every week will arrange their holiday schedules based on specific programs and plans in conformity with the law.

- For workers not covered in Section 1 of Announcement 6150/TB-BLDTBXH of 2024, the employer can decide on the Lunar New Year 2025 holiday schedule as follows:

Option one of the last day of the year of Giap Thin and four days at the beginning of the year of At Ty or two days at the end of the year of Giap Thin and three days at the start of the year of At Ty or three days at the close of the year of Giap Thin and two days at the start of the year of At Ty.

- Notify the employees of the Lunar New Year 2025 holiday schedule at least 30 days prior to implementation.

- If the weekly day off coincides with the holiday specified in Clause 1 of Article 112 of the Labor Code 2019, the employee is entitled to compensatory time off on the following working day as regulated in Clause 3, Article 111 of the Labor Code 2019.

Thus, according to the official Lunar New Year 2025 holiday schedule, officials and public employees will have a continuous 9-day holiday from January 25, 2025 - February 2, 2025 (from the 26th day of the 12th month in the year of Giap Thin to the 5th day of the 1st month in the year of At Ty).

For workers in private enterprises, the employer decides on the Lunar New Year 2025 holiday schedule as follows: one day at the end of the year of Giap Thin and four days at the start of the year of At Ty or two days at the end of the year of Giap Thin and three days at the start of the year of At Ty or three days at the end of the year of Giap Thin and two days at the start of the year of At Ty.

What is the official Lunar New Year holiday schedule in Vietnam in 2025? Is salary for working during Lunar New Year 2025 subject to personal income tax in Vietnam? (Image from Internet)

Is salary for working during Lunar New Year 2025 subject to personal income tax ivbn?

Based on the provisions of Article 98 of the Labor Code 2019 regarding overtime pay and night work

Overtime pay and night work compensation

1. Employees working overtime shall be compensated with wages based on their wage unit price or the actual wages paid for the work being done as follows:

a) On regular days, at least 150%;

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

c) On holidays, Tet, days off with pay, at least 300% not including wages for holidays, Tet, days off with pay for employees receiving daily wages.

2. Employees working during night time shall receive an additional 30% or more of the wage based on their wage unit price or the actual wages paid for a regular working day.

3. Employees working overtime during the night, in addition to being paid under the provisions of Clauses 1 and 2 of this Article, shall also receive an additional 20% of the wage based on their wage unit price or the wages paid for daytime work of a regular working day or a weekly day off or a holiday, Tet.

4. The Government of Vietnam shall provide detailed regulations on this Article.

• If employees work overtime on the Tet holiday, they shall receive at least 300% not including the wages for holidays, Tet, days off with pay for employees receiving daily wages.*

Simultaneously, under Point i.1 Subpoint i Clause 1 Article 3 of Circular 111/2013/TT-BTC, it is stipulated that the following types of income are exempt from taxes:

Income exempt from taxes

1. In accordance with the provisions of Article 4 of the Law on Personal Income Tax, Article 4 of Decree No. 65/2013/ND-CP, the types of income exempt from tax include:

...

**i) Income from wages and remuneration for night work, overtime paid at higher rates compared to day work wages, or in accordance with the Labor Code. To be specific:

i.1) The part of wages and remuneration paid at higher rates due to night work or overtime is exempt from tax based on the actual wages and remuneration paid for night work, overtime minus (-) the wages and remuneration calculated for regular working days.

Example 2: Mr. A's wage for a regular working day is 40,000 VND/hour as per the Labor Code.

- In the case where an individual works overtime on a regular day, the individual is paid 60,000 VND/hour, the income exempt from tax is:

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

- In the case where an individual works overtime on a day off or a holiday, the individual is paid 80,000 VND/hour, the income exempt from tax is:

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

...

Thus, according to the above provisions, if employees work overtime during the Lunar New Year 2025, they must pay personal income tax on the portion of the salary calculated based on a regular working day and will be exempt from personal income tax on the portion of the salary paid at rates higher than regular working day wages.

What are regulations on the personal income tax period in Vietnam?

According to Article 7 of the Law on Personal Income Tax 2007 modified by Clause 3 Article 1 of the Law on Amendments to Law on Personal Income Tax 2012 concerning the tax period:

- The tax period for resident individuals is regulated as follows:

+ Yearly tax period applies to income from business, income from wages, and remuneration;

+ Tax period per occurrence of income for income from capital investment; income from capital transfer, excluding income from securities transfer; income from real estate transfer; income from winning prizes; income from royalties; income from franchise; income from inheritance; income from gifts;

+ Tax period per transaction or yearly for income from securities transfer

- For non-resident individuals, the tax period applies per each occurrence of taxable income across all types of taxable income.