Is đá bóng trực tiếp employer obligated to provide year-end bonuses for employees in Vietnam? Is đá bóng trực tiếp Tet bonus for employees included in deductible expenses when calculating corporate income tax in Vietnam?
Is đá bóng trực tiếp employer obligated to provide year-end bonuses for employees in Vietnam?
Based on đá bóng trực tiếp regulations stipulated in Article 104 of đá bóng trực tiếpLabor Code 2019as follows:
Bonus
- A bonus is an amount of money or assets or other forms that đá bóng trực tiếp employer rewards to đá bóng trực tiếp employee based on đá bóng trực tiếp results of production, business, and đá bóng trực tiếp level of work completion of đá bóng trực tiếp employee.
- đá bóng trực tiếp bonus policy is decided upon and publicly announced by đá bóng trực tiếp employer at đá bóng trực tiếp workplace after consulting with đá bóng trực tiếp employee representative organization at đá bóng trực tiếp facility, where such an organization exists.
Thus, it can be seen that đá bóng trực tiếp law does not mandate companies to provide year-end bonuses for employees.
đá bóng trực tiếp bonus policy will be decided upon by đá bóng trực tiếp employer based on đá bóng trực tiếp capabilities, performance, and business outcomes of each employee within that employer, and it is subject to đá bóng trực tiếp bonus policy established by đá bóng trực tiếp employer.
In cases where đá bóng trực tiếp business has a Bonus Policy (clearly stipulating đá bóng trực tiếp circumstances under which employees receive bonuses) and has publicly informed employees, đá bóng trực tiếp business must comply with đá bóng trực tiếp employer's Bonus Policy regarding đá bóng trực tiếp payment of bonuses to employees.
Is đá bóng trực tiếp employer obligated to provide year-end bonuses for employees in Vietnam? (Image from đá bóng trực tiếp Internet)
Is đá bóng trực tiếp Tet bonus subject to personal income tax in Vietnam?
Based on point e, clause 2, Article 2 ofCircular 111/2013/TT-BTCregarding taxable personal income as follows:
Taxable incomes
According to đá bóng trực tiếp provisions of Article 3 of đá bóng trực tiếp Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal incomes include:
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- Income from wages and salaries
Income from wages and salaries is đá bóng trực tiếp income received by đá bóng trực tiếp employee from đá bóng trực tiếp employer, including:
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e) Bonuses in cash or in kind in any form, including stock bonuses, except for đá bóng trực tiếp following bonuses:
e.1) Bonuses acemployering titles awarded by đá bóng trực tiếp State, including bonuses acemployering titles of emulation, forms of commendation as stipulated by đá bóng trực tiếp law on emulation and commendation, specifically:
e.1.1) Bonuses acemployering emulation titles such as National Emulation Soldier; Ministry, sector, central committee, province, city under central authority emulation soldier; grassroots emulation soldier, Advanced Laborer, Advanced Soldier.
e.1.2) Bonuses acemployering forms of commendation.
e.1.3) Bonuses acemployering titles awarded by đá bóng trực tiếp State.
e.1.4) Bonuses acemployering prizes granted by Associations, Organizations belonging to political organizations, socio-political organizations, social organizations, and socio-professional organizations of đá bóng trực tiếp central and local levels in accordance with đá bóng trực tiếp charter of those organizations and in accordance with đá bóng trực tiếp Law on Emulation and Commendation.
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Thus, đá bóng trực tiếp employer's Tet bonus is considered a type of bonus, and this amount is not among đá bóng trực tiếp bonuses exempted from PIT.
Therefore, đá bóng trực tiếp employer's Tet bonus is an income that is subject to personal income tax.
Is đá bóng trực tiếp Tet bonus for employees included in deductible expenses when calculating corporate income tax in Vietnam?
Based on point b, clause 2.6, Article 4 ofCircular 96/2015/TT-BTC(amended by clause 2, Article 3 ofCircular 25/2018/TT-BTC) stipulating non-deductible expenses when determining taxable income includes:
Deductible and non-deductible expenses when determining taxable income
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Non-deductible expenses when determining taxable income include:
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2.6 Expenses for salaries, wages, bonuses for employees in any of đá bóng trực tiếp following cases:
a) Expenses for salaries, wages, and other amounts payable to employees that have been accounted into đá bóng trực tiếp production and business expenses but not actually paid or do not have payment vouchers in accordance with đá bóng trực tiếp law.
b) Salaries, bonuses for employees not specifically documented with eligibility conditions and levels of enjoyments in one of đá bóng trực tiếp following documents: Labor contract; Collective labor agreement; Financial regulations of đá bóng trực tiếp employer, Corporation, Group; Bonus regulation issued by đá bóng trực tiếp Chairman of đá bóng trực tiếp Board, General Director, Director in accordance with đá bóng trực tiếp financial regulations of đá bóng trực tiếp employer, Corporation.
- In cases where a business signs a labor contract with a foreigner that specifies expenses for schooling of đá bóng trực tiếp foreigner's children in Vietnam from kindergarten to high school level and said expenses are treated as salaries or wages and have full invoices and documents in compliance with regulations, they can be included in deductible expenses when determining taxable corporate income.
- In cases where a business signs a labor contract with an employee specifying housing expenses paid by đá bóng trực tiếp business to đá bóng trực tiếp employee, this payment is treated as salary, wages, and has full invoices and documents in compliance with regulations, it can be included in deductible expenses when determining taxable corporate income.
- In case a Vietnamese enterprise signs a contract with a foreign enterprise that states đá bóng trực tiếp Vietnamese enterprise must bear costs for accommodation of foreign experts during their work period in Vietnam, đá bóng trực tiếp rent paid for foreign experts working in Vietnam will be included in deductible expenses when determining taxable corporate income.
Thus, Tet bonuses for employees will be included in deductible expenses when calculating CIT if these bonuses are specifically documented with eligibility conditions and levels of enjoyment in one of đá bóng trực tiếp following documents of đá bóng trực tiếp enterprise:
- Labor contract;
- Collective labor agreement;
- Corporate financial regulations;
- Corporate bonus regulations.
