U23 players are exempt from tax on bonuses from the State

At a press conference on information on corporate income tax and personal income tax settlement, Mr. Nguyen Van Phung, Director of the Department of Large Enterprise Tax Management (General Department of Taxation) said that the amounts of money that the U23 Vietnam team players are rewarded by the State according to the regime, with an accompanying decision, will be exempt from personal income tax.

Regarding the determination of tax obligations of U23 Vietnam players, according to Mr. Phung, among the units and individuals who promised to reward the U23 Vietnam team, there are individuals and businesses that have not yet transferred money to the players.

Currently, the General Department of Taxation is coordinating with the Vietnam Football Federation to assess how much money each player is given? Which amount is tax-exempt, which amount is taxable, to determine the tax liability for each player.

According to Ms. Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, bonuses that are cash gifts are not subject to tax according to current regulations.

Because according to regulations, only gifts in kind that require ownership to be established such as motorbikes, cars, houses, land... are subject to personal income tax.

Regarding the implementation of personal income tax settlement this year, at the press conference, the representative of the General Department of Taxation said that resident individuals with income from salaries and wages are responsible for declaring tax settlement if there is additional tax payable or if there is excess tax paid and they request a refund or tax offset in the next tax declaration period.

In addition, another subject that does not have to make tax settlement is an individual with income from salary, wages, signing a labor contract for 3 months or more at a unit, but has additional irregular income in other places with an average monthly income of no more than 10 million VND in the year.

This person has had income tax deducted at source by the unit paying the income at a rate of 10%. If the individual does not request, he/she does not have to make a tax settlement for this income.

Regarding the form of tax settlement, tax industry representatives said that individuals can authorize tax settlement through the income paying organization or directly settle tax.

One of the authorized cases is an individual with income from salary or wages who signs a labor contract for 3 months or more at an income-paying organization and is actually working there at the time of authorizing tax settlement.

However, individuals pay taxes directly to the tax authority when they have irregular income with tax deducted at a rate of 10%.