Do you have to pay personal income tax in Vietnam for Tet holiday bonuses and 13th month salary?
Reconciliation in accordance with the current law for the question. Do you have to pay personal income tax in Vietnam for Tet holiday bonuses and 13th month salary? Please advice.
Do you have to pay personal income tax in Vietnam for Tet holiday bonuses and 13th month salary?
In Clause 2, Article 2 of Circular 111/2013/TT-BTC, there are provisions on income from wages and salaries subject to pit as follows:
2. Incomes from wages and remunerations.
Incomes from wages and remunerations (hereinafter referred to as wages) are incomes paid to employees from employers, including:
a) Wages, remunerations, and the other amounts paid as wages or remunerations in cash or not in cash.
b) Allowances and benefits, except for:
b.1) Monthly benefits, lump-sum benefits and allowances according to regulations of law on incentives for contributors.
b.2) Monthly allowances and lump-sump allowances for the persons that participate in the resistance movements, national defense, fulfillment of international tasks, and discharged volunteers.
b.3) Benefits for national defense and security; subsidies for the armed forces.
b.4) Benefits for dangerous or harmful works.
b.5) Benefits for employees in disadvantaged areas.
b.6) Irregular allowances for difficulties, occupational accident benefits, occupational illness benefits, lump-sum allowances for childbirth or adoption, maternity leave benefits, post-maternity recovery benefits, benefits for reduction in work ability, lump-sum pension, monthly widow’s pension, severance pay, redundancy pay, unemployment benefits, and other benefits according to the Labor Code and the Law on Social insurance.
b.7) Benefits for beneficiaries of social security.
b.8) Benefits for senior officers.
Thus, according to the above-mentioned regulations, income from Tet bonus and 13th month bonus is still subject to personal income tax in Vietnam. Including cash and in-kind rewards.
Family allowances of personal income tax in Vietnam
In Article 1 of Resolution 954/2020/UBTVQH14 , there are provisions on the family discount, as follows:
The exemptions specified in Clause 1 Article 19 of the Law on Personal Income Tax No. 04/2007/QH12, amended by Law No. 26/2012/QH13, are changed as follows:
1. Personal exemption: 11 million VND/month (132 million VND/year);
2. Dependent exemption: 4,4 million VND/dependent/month.
Best Regards!
