Is Vietnamese lucky money subject to personal bóng đá hôm nay trực tiếp? Is it deductible when calculating corporate bóng đá hôm nay trực tiếp?
Is Vietnamese lucky moneysubject to personal bóng đá hôm nay trực tiếp?
According to the provisions of Clause 2 Article 3 of the2007 Personal bóng đá hôm nay trực tiếp Law(amended by Clause 1 Article 1 of theLuật thuế thu trực tiếp bóng đá euro hôm nay cá nhânand theLuật sửa đổi các Luật), taxable bóng đá hôm nay trực tiếp includes bóng đá hôm nay trực tiếp from wages, salaries, and other bóng đá hôm nay trực tiếp of a wage, salary nature.
Therefore, to determine whether Vietnamese lucky money is subject to personal bóng đá hôm nay trực tiếp (PIT), it is necessary to clearly distinguish the nature of the lucky money. To be specific:
(1) Lucky money from family, relatives
Based on the regulations at Clause 10 Article 2 ofCircular 111/2013/TT-BTC, which stipulates taxable bóng đá hôm nay trực tiếp from receiving gifts as follows:
Taxable bóng đá hôm nay trực tiếp
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- bóng đá hôm nay trực tiếp from receiving gifts
bóng đá hôm nay trực tiếp from receiving gifts is the bóng đá hôm nay trực tiếp an individual receives from domestic and foreign organizations and individuals. To be specific:
a) For receiving gifts as securities, including: shares, share purchase rights, bonds, treasury bills, fund certificates, and other securities as stipulated by the Law on Securities; shares of individuals in joint-stock companies as stipulated by the Law on Enterprises.
b) For receiving gifts as stakes in economic organizations, business establishments including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual business establishments, capital in associations, funds allowed to establish under the law, or entire business establishments if privately owned.
c) For receiving gifts as real estate, including: land use rights; land use rights with attached assets; house ownership rights, including future formed houses; infrastructure and construction works attached to land, including future formed construction works; land rental rights; water surface rental rights; other bóng đá hôm nay trực tiếp received from real estate inheritance by any means; except for bóng đá hôm nay trực tiếp from real estate gifts guided at Point d, Clause 1, Article 3 of this Circular.
d) For receiving gifts as other assets that must be registered for ownership or use rights with State management agencies such as: cars; motorcycles, motorbikes; watercraft, including barges, canoes, towboats, pushers; yachts; aircraft; hunting guns, sporting guns.
Based on the above regulations, there is no regulation that bóng đá hôm nay trực tiếp from cash gifts must bear PIT. Lucky money received from family and relatives is a gift representing luck, not bóng đá hôm nay trực tiếp from wages, salaries, or business activities.
Thus, bóng đá hôm nay trực tiếp from lucky money gifts from family and relatives is not subject to PIT.
(2) Lucky money from a bóng đá hôm nay trực tiếp payer:
Based on Point e Clause 2 Article 2 ofCircular 111/2013/TT-BTC, which stipulates taxable bóng đá hôm nay trực tiếp as follows:
Taxable bóng đá hôm nay trực tiếp
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2. bóng đá hôm nay trực tiếp from wages, salaries
bóng đá hôm nay trực tiếp from wages, salaries is bóng đá hôm nay trực tiếp employees receive from employers, including:
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e) Bonuses in cash or in kind in all forms, including bonuses in securities, except for the following bonuses:
e.1) Bonuses associated with titles awarded by the State, including bonuses associated with titles of emulation, forms of reward according to the law on emulation and commendation, specifically:
e.1.1) Bonuses associated with emulation titles such as National Emulation Soldier; Emulation Soldier at the ministry, sector, central organization or province, centrally-run city; Grassroots Emulation Soldier, Advanced Worker, Advanced Soldier.
e.1.2) Bonuses associated with forms of commendation.
e.1.3) Bonuses associated with titles awarded by the State.
e.1.4) Bonuses associated with awards given by associations, organizations belonging to political organizations, socio-political organizations, social organizations, social-professional organizations at central and local levels appropriate to the charter of that organization and in accordance with the Law on Emulation and Commendation.
e.1.5) Bonuses associated with the Ho Chi Minh Prize, State Prize.
e.1.6) Bonuses associated with Commemorative Medals, Badges.
e.1.7) Bonuses associated with Certificates of Merit, Certificates of Commendation.
The authority to decide on commendations, the amount of bonuses associated with emulation titles, and forms of reward mentioned above must comply with the provisions of the Law on Emulation and Commendation.
e.2) Bonuses associated with national prizes, international prizes recognized by the Vietnamese State.
e.3) Bonuses for technical innovations, inventions recognized by competent State agencies.
e.4) Bonuses for discovering, reporting legal violations to competent State agencies.
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According to the above provisions, Vietnamese lucky money given by the bóng đá hôm nay trực tiếp payer to employees can be considered either a bonus or bóng đá hôm nay trực tiếp of a wage, salary nature. Therefore, if this amount is purposefully paid by the enterprise, included in the salary or bonus policy, the employee must consider it taxable PIT bóng đá hôm nay trực tiếp.
Thus,lucky money from the income payer may be subject to personal bóng đá hôm nay trực tiếp (PIT) depending on how the enterprise pays and accounts for it:
- Case where tax must be paid:If the lucky money amount is purposefully paid by the enterprise, included in the salary or bonus policy, or officially recorded in the accounting system, it is considered taxable bóng đá hôm nay trực tiếp. In this case, the employee may have to pay PIT if their bóng đá hôm nay trực tiếp remains taxable after deductions.
- Case where tax is not required:If the lucky money is purely symbolic, not part of the salary or bonus regulations, and not officially accounted for, it can be considered a non-taxable gift.
Is Vietnamese lucky money subject to personal bóng đá hôm nay trực tiếp?(Image from the Internet)
Can Vietnamese lucky money be deducted for corporate bóng đá hôm nay trực tiếp (CIT) calculation?
Based on Point 2.30 Clause 2 Article 6 ofCircular 78/2014/TT-BTC(amended, supplemented by Article 4Circular 96/2015/TT-BTCand Clause 4 Article 3Circular 25/2018/TT-BTC):
Deductible and Non-deductible Expenses in Determining Taxable bóng đá hôm nay trực tiếp
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- Non-deductible expenses in determining taxable bóng đá hôm nay trực tiếp include:
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2.30. Expenses not corresponding to taxable revenue, except for the following expenses:
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- Expenses of welfare nature directly paid to employees such as: expenses for funerals, weddings for employees and their families; vacation expenses, treatment support; expenses for additional training at educational institutions; support for families affected by disasters, accidents, illness; rewarding children of employees with good academic achievements; travel support expenses for holidays, Tet for employees; accident insurance, health insurance, other voluntary insurance for employees (except expenses for buying life insurance for employees, voluntary retirement insurance for employees guided at Point 2.11 of this Article) and other welfare expenses. Total welfare expenses shall not exceed the actual average one-month salary in the tax year of the enterprise.
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Additionally, according toCông văn 2489/CT-TTHT năm 2016issued by the Ho Chi Minh City Tax Department on March 24, 2016, guiding tax policies as follows:
In the case that in the year 2014, the bóng đá hôm nay trực tiếp payer incurs expenses of a welfare nature directly given to employees such as: expenses for funeral, wedding for employees, Vietnamese lucky money, vacation, etc., and other welfare expenses, if there are lawful invoices and documents and the total welfare expenses do not exceed the actual average one-month salary implemented during the bóng đá hôm nay trực tiếp payer's tax year, then the bóng đá hôm nay trực tiếp payer can consider these as deductible expenses in determining taxable corporate bóng đá hôm nay trực tiếp (CIT).
Thus, lucky money given to employees at the beginning of the year is considered one of the welfare expenses. This is recognized as a deductible expense when calculating corporate bóng đá hôm nay trực tiếp (CIT).
Note: The total welfare expenses mentioned above must not exceed the actual average one-month salary paid during the enterprise's tax year.
Where is the place for enterprises to pay corporate bóng đá hôm nay trực tiếp in Vietnam?
Based on Article 12 ofDecree 218/2013/ND-CPstipulating the place to pay taxes as follows:
Place to Pay Taxes
- Enterprises pay taxes at the localities where their headquarters are located. In cases where enterprises have production establishments dependent on accounting located in provinces or centrally run cities other than where their headquarters are situated, taxes are paid at the location of the headquarters and the production establishment.
Corporate bóng đá hôm nay trực tiếp payable in provinces or centrally run cities where there are dependent accounting production establishments is calculated by the bóng đá hôm nay trực tiếp payable by the enterprise multiplied by the ratio between costs incurred at the dependent accounting production establishment and the total costs of the enterprise.
The tax payment stipulated in this Clause does not apply to construction projects, components of projects, or construction establishments that conduct dependent accounting.
The decentralization, management, and use of revenue from corporate bóng đá hôm nay trực tiếp are implemented in accordance with the Law on State Budget.
- Dependent accounting units of enterprises that account for the industry as a whole with bóng đá hôm nay trực tiếp outside the main business activities shall pay tax in the provinces or centrally-run cities where these business activities take place.
- The Ministry of Finance guides the place to pay taxes stipulated in this Article.
Thus, enterprises pay CIT at:
- The locality where the enterprise's headquarters is located.
In cases where enterprises have production establishments dependent on accounting in a province or city directly under central authority different from where the headquarters is located, taxes are calculated based on the location of the headquarters and the production establishment.
Note: this regulation does not apply to construction projects, components of projects, or construction establishments that conduct dependent accounting.
- The province or city directly under central authority where there are business activities: For dependent accounting units of enterprises that account for the whole industry with bóng đá hôm nay trực tiếp from outside the main business operations.
