When is the 23rd of the twelfth lunar month? What festival is celebrated? Is overtime pay on the December 23rd in the lunar calender subject to personal income tax in Vietnam?

When is the 23rd of the twelfth lunar month? What festival is celebrated on this day in Vietnam?

According to the 2024 lunar calendar and the 2025 solar calendar, the 23rd of the twelfth lunar month will fall on Wednesday, January 22, 2025, in the solar calendar (December 23, 2024, lunar is January 22, 2025, solar).

Traditionally, the Vietnamese people believed that after the Jade Emperor heard the reports from the Kitchen Gods, he would decide whether to reward or punish the household based on those reports.

Therefore, on the 23rd of the twelfth lunar month every year, before the Kitchen Gods ascend to heaven, Vietnamese people perform the ritual of worshipping the Land God and the Kitchen God.

This practice is to express gratitude to the Kitchen Gods and ask them to "speak well" for their family to receive fortune and peace in the upcoming year.

Therefore, the 23rd of the twelfth lunar month is called the day Mr. Cong, Mr. Tao return to heaven. In 2025, it falls in the middle of the week, so families can prepare a thorough, well-decorated offering to see off Mr. Cong, Mr. Tao. The worship of the Kitchen Gods can start from the 21st of the lunar month and should finish before the end of the Hour of the Horse (from 11 a.m. to 1 p.m.) on the 23rd of the lunar month each year, as this is when the deities gather to prepare to return to heaven.

When is the 23rd of the twelfth lunar month? What festival is celebrated on this day in Vietnam? (Image from the Internet)

Is the 23rd of the twelfth lunar month a public holiday in Vietnam?

Pursuant to Article 112 of the Labor Code 2019, the specific holidays are defined as follows:

Public Holidays

1. Employees are entitled to time off with full pay on the following holidays:

a) New Year's Day: 01 day (January 01 Gregorian calendar);

b) Lunar New Year: 05 days;

c) Victory Day: 01 day (April 30 Gregorian calendar);

d) International Labor Day: 01 day (May 01 Gregorian calendar);

đ) National Day: 02 days (September 02 Gregorian calendar and 01 adjacent day before or after);

e) Hung Kings' Commemoration Day: 01 day (March 10 lunar calendar).

2. Foreign employees working in Vietnam are entitled to an additional 01 traditional new year day of their country and 01 national day holiday in addition to the days off prescribed in Clause 1 of this Article.

3. Annually, based on actual conditions, the Prime Minister decides specific holidays prescribed at Point b and Point đ of Clause 1 of this Article

Additionally, Article 115 of the Labor Code 2019 provides for personal leave, leave without pay as follows:

Personal Leave, Unpaid Leave

1. Employees are entitled to personal leave with full pay and must notify the employer in the following cases:

a) Marriage: 03 days off;

b) Child’s marriage: 01 day off;

c) Death of biological parents, adoptive parents, parents of spouse; spouse; biological children, adopted children: 03 days off.

2. Employees are entitled to 01 day of unpaid leave and must notify the employer when grandparents, siblings, grandchildren pass away; parents' marriages; siblings' marriages.

3. Apart from regulations in Clauses 1 and 2 of this Article, employees may agree with the employer on unpaid leave.

Based on the above regulations, among the days employees are entitled to paid leave and personal leave, there is no provision for the day to send off Mr. Cong, Mr. Tao (23rd of the twelfth lunar month).

However, if employees wish to take a leave on this day, they may negotiate with their employer to deduct it from their annual leave or take unpaid leave, and this must be agreed upon by the employer.

Is overtime pay on the 23rd of the twelfth lunar month subject to personal income tax in Vietnam?

Pursuant to point i Clause 1 Article 3 of Circular 111/2013/TT-BTC on tax-exempt income as follows:

Tax-Exempt Income

1. Based on regulations in Article 4 of the Personal Income Tax Law, Article 4 of Decree No. 65/2013/ND-CP, tax-exempt incomes include:

...

i) Income from wages, salaries for working at night, overtime paid higher than normal working hours according to the Labor Code. Specifically:

i.1) The extra wages paid due to working at night, overtime are tax-exempt based on actual wages paid minus (-) normal daily wages.

Example 2: Mr. A has a normal hourly wage of 40,000 VND according to the Labor Code.

- In case of working overtime on regular days earning 60,000 VND/hour, the tax-exempt income is:

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

- In case of working overtime on holidays earning 80,000 VND/hour, the tax-exempt income is:

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

i.2) Organizations and individuals paying income must prepare a statement reflecting the night work, overtime, and additional wages paid for these must be available for tax authorities upon request.

...

Thus, overtime wages on the 23rd of the twelfth lunar month are only exempt from PIT for the portion of the wages that are paid higher compared to daily working hours as prescribed by the Labor Code 2019. The wages for regular working hours remain taxable under PIT.