Is Income Earned on Public Holidays Subject to Personal Income Tax?

According to the provisions at Point i, Clause 1, Article 3 of Circular 111/2013/TT-BTC. To be specific:

- The portion of wages and salaries paid higher due to night work and overtime work is tax-exempt based on the actual wages and salaries paid for night and overtime work minus (-) the wages and salaries calculated according to normal working days.

- Organizations and individuals paying income must prepare a statement reflecting clearly the night work and overtime hours, the additional wages paid for night work and overtime work that have been paid to the employees. This statement is to be kept at the income-paying unit and presented upon request by the tax authority.

=> Thus, wages for working on holidays are divided into two parts: taxable and tax-exempt. The taxable part is the income according to the normal working day rate. The part higher than the normal working day rate is tax-exempt.

Therefore: Holiday income for personal income tax calculation is determined as follows:

- 100% wages: Must be included in the monthly income of the employee for personal income tax withholding as stipulated.

- 300% wages: Is tax-exempt from personal income tax and hence not included in the monthly income of the employee for personal income tax withholding.

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