On January 7, the General Department of Taxation shared with the press information about whether the bonuses of the Vietnamese football team are subject to personal income tax or not.
The General Department of Taxation said that in 2018, the unit issued Official Letter No. 1324/TCT-TNCN dated April 16, specifically regulating the payment of personal income tax (PIT) on bonuses received by the Vietnamese football team. Accordingly, depending on the origin and nature of the bonus, different tax rates are applied.
As for bonuses from achievements in national or international tournaments recognized by the State, such as championship or runner-up, these amounts are considered incentives under the Law on Emulation and Commendation and are not included in taxable income. This is considered a worthy recognition for the contributions of players and coaching staff.
On the contrary, bonuses from corporations, businesses, organizations or individuals, if they are in the nature of salary, wages, or are paid according to the financial regulations of the Vietnam Football Federation, will be subject to personal income tax. The withholding tax rate is 10% for income from 2 million VND/time or more or apply a progressive tax rate depending on the individual's labor contract. At the end of the year, the recipient must make a tax settlement according to regulations.
In addition, if the gift is a valuable asset such as securities, real estate, or capital contributions in economic organizations, the individual receiving the gift will have to pay income tax on the receipt of this gift.
Clear and transparent classification of bonuses helps ensure compliance with the law and fairness in tax obligations. This is not only the responsibility of each individual but also contributes to creating financial transparency and contributing to the State budget.
