Vietnam: Shall Tet bonus in 2019 be subject to personal income tax?

The end of the coming year is also the time when businesses pay Tet bonuses and 13th month salary to employees. So, shall this amount of bonus be subject to personal income tax?

Tet bonus is an optional amount for employees, based on annual production and business results and the employee's work completion.

According to the Circular No. 111/2013/TT-BTC of the Ministry of Finance of Vietnam, incomes from wages and remunerations subject to personal income tax include: “Rewards in cash or not in cash in any shape or form”:

Except for:

1. Prize money associated with the titles awarded by the State, including the prize money associated with honorary titles as prescribed by law:

- Prize money associated with honorary titles awarded by Ministries, central and provincial agencies and associations, excellent employee titles.

- Prize money associated with the awards.

- Prize money associated with the titles awarded by the State.

- Prize money associated with the awards presented by associations and organizations belonging to central and local political organizations, socio-political organizations, social organizations, social organizations that conforms with their charters and the Law on Emulation and commendation.

- Prize money associated with the Ho Chi Minh Prize and National Prize.

- Prize money associated with medals or badges.

- Prize money associated with certificates of merit.

2. Prize money associated with national prizes and international prizes recognized by Vietnam.

3. Rewards for technical innovations and inventions recognized by competent authorities.

4. Rewards for reporting violations of law to competent authorities.

Thus, based on the above regulations, the 13th-month salary or Tet bonus is subject to personal income tax and is determined as income from wages and remunerations.

- Le Hai -

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