Who are eligible for bonuses for extraordinary achievements in Vietnam under Decree 73?

Who are eligible for bonuses for extraordinary achievements in Vietnam under Decree 73?

According to Clause 1, Article 4 of Decree 73/2024/ND-CP regarding bonus policies stipulated:

Bonus Policy

1. Implementation of bonus policies based on unexpected work achievements and the evaluation and classification results of the annual task performance for the subjects specified in Clause 2, Article 2 of this Decree.

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Referring to Clause 2, Article 2 of Decree 73/2024/ND-CP, it is provided that 08 subjects are eligible for unexpected rewards under Decree 73/2024/ND-CP including those salaried in the following cases (excluding allowances and living expenses):

(1) Central to district-level officials stipulated in Clauses 1 and 2, Article 4 of the Law on officials 2008 (amended and supplemented by the Law Amending and Supplementing a Number of Articles of the Law on Cadres, Officials and the Law on Public Employees 2019);

(2) Commune-level officials stipulated in Clause 3, Article 4 of the Law on officials 2008 (amended and supplemented by the Law Amending and Supplementing a Number of Articles of the Law on Cadres, Officials and the Law on Public Employees 2019);

(3) Public employees in public service providers as stipulated in the Law on Public Employees 2010 (amended and supplemented by the Law Amending and Supplementing a Number of Articles of the Law on Cadres, Officials and the Law on Public Employees 2019);

(4) People working according to employment contract policies as stipulated in Decree 111/2022/ND-CP dated December 30, 2022, of the Government of Vietnam on contracts for certain types of work in administrative agencies and public service providers falling under applicable cases or having agreements in the employment contract applying salary arrangement as per Decree 204/2004/ND-CP dated December 14, 2004, of the Government of Vietnam on salary policies for officials and public employees and the armed forces;

(5) Persons working under payrolls in associations receiving state budget operational funding according to Decree 45/2010/ND-CP dated April 21, 2010, of the Government of Vietnam regarding the organization, operation, and management of associations (amended and supplemented by Decree 33/2012/ND-CP dated April 13, 2012, of the Government of Vietnam);

(6) Officers, professional servicemen, workers, public defense employees, and contract laborers under the Vietnam People's Army;

(7) Officers, non-commissioned officers on salary, public security workers, and contract laborers under the People's Public Security;

(8) Persons working in cipher organizations.

Thus, the 08 above-mentioned subjects, if they meet the criteria for rewards based on unexpected work achievements (manifested in specific products and results) as stipulated in the award regulation of the agency or unit, will receive bonuses for extraordinary achievements under Decree 73/2024/ND-CP.

Who are eligible for bonuses for extraordinary achievements in Vietnam under Decree 73? (Image from the Internet)

Are bonuses for extraordinary achievements under Decree 73 subject to PIT in Vietnam?

Based on Point e, Clause 2, Article 2 of Circular 111/2013/TT-BTC regulating taxable incomes as follows:

Taxable Incomes

According to Article 3 of the Law on Personal Income Tax 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 not in cash under any form, including stock bonuses, excluding the following bonuses:

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e.1.4) Prizes accompanying awards given by associations, organizations within the Central and local political organizations, political-social organizations, social organizations, socio-professional organizations in accordance with the organization's charter and in accordance with the Law on Emulation and Commendation.

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Thus, the bonuses for extraordinary achievements under the above-mentioned Decree 73 are not subject to PIT.

Which incomes are exempt from PIT in Vietnam?

According to Article 4 of the Law on Personal Income Tax 2007 (supplemented by Clause 3, Article 2 of the Law Amending Tax Laws 2014 and Clause 2, Article 1 of the Amended Law on Personal Income Tax 2012), the following personal incomes are exempt from PIT:

- Income from the transfer of real estate between spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.

- Income from the transfer of residential houses, rights to use homestead land, and assets attached to homestead land of individuals in cases where individuals have only one residential house or homestead land.

- Income from land use rights value of individuals granted land by the state.

- Income from receiving inheritances and gifts in real estate between spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; siblings.

- Income of households or individuals directly engaged in agricultural production, forestry, salt production, aquaculture, or fishing not processed into other products or only through ordinary processing.

- Income from the conversion of agricultural land allocated by the state for production.

- Income from interest on deposits at credit institutions and life insurance contracts.

- Income from remittances.

- Part of the salary for night work or overtime paid higher than that of daytime work under the law.

- Pensions paid by the Social Insurance Fund; monthly pensions from voluntary pension funds.

- Income from scholarships including:

+ Scholarships from the state budget;

+ Scholarships from domestic and foreign organizations under their study promotion support programs.

- Income from indemnities for life insurance, non-life insurance contracts, compensation for labor accidents, state compensation, and other compensations under the law.

- Income from charitable funds allowed or recognized by competent state agencies, operating for charitable, humanitarian, non-profit purposes.

- Income from foreign aid for charitable, humanitarian purposes in the form of government and non-government approved by competent state agencies.

- Income from salaries, wages of Vietnamese seamen working for foreign shipping lines or Vietnamese shipping lines carrying out international transportation.

- Income of individuals who are shipowners, individuals with the right to use ships, and individuals working on ships from the provision of goods and services directly serving offshore fishing.