Receiving bonuses, how do U23 players have to pay taxes?

Morning of January 28, talking withZing.vn, a representative of the Hanoi Tax Department said that with the bonuses received from businesses, the U23 Vietnam players still have to pay taxes.

The basis for calculating tax given by this person is Clause 2, Article 3, Law on Personal Income Tax 2007, which stipulates taxable income.

In Clause 2, Article 3, the Law specifically stipulates taxable income from salaries and wages. In which, bonuses are one of the incomes subject to personal income tax.

The Law also stipulates that non-taxable bonuses include bonuses associated with titles conferred by the State, bonuses associated with national and international awards, bonuses for technical improvements, inventions and discoveries recognized by competent State agencies, and bonuses for detecting and reporting violations of the law to competent State agencies.

In other words, if the U23 Vietnam team receives bonuses along with titles awarded by the State, they do not have to pay taxes. However, if any bonus money is taken from the State budget but is not accompanied by a title, they must pay taxes.

For example, the People's Committees of Hanoi and Ho Chi Minh City allocate budget to reward the Vietnam U23 team, but they still have to pay taxes as usual. However, if these localities give bonuses along with a certain title, they do not have to pay taxes.

Income generated by domestic and foreign organizations and individuals is also subject to tax. The tax rate is 10% of the total value of the bonus. The 10% rate applies to bonuses of VND 10 million or more.

However, a representative of the Hanoi Tax Department emphasized that if a bonus is given to a group, it is not subject to tax. “For example, if a company gives a bonus to a group and they use that money for common purposes or training children, it cannot be taxed. Therefore, only individuals who are given a bonus by name by the company have to pay tax,” he said.

When talking about gifts in kind for the Vietnam U23 team, this person said that there are still many different opinions about paying taxes on this type of gift. Depending on the gift and the circumstances of the gift, there can be a basis for accurate tax declaration.

Lawyer Doan Van Hau, Vice President of the Ho Chi Minh City Bar Association, also said that players must pay taxes on bonuses from individuals and organizations that are not part of the state budget as prescribed by law. “There are no exceptions to paying taxes,” Mr. Hau emphasized.

Regarding the Vietnam U23 team, after successfully competing at the U23 Asian Championship, the players received many large bonuses from businesses.

Some businesses that gave rewards to the U23 team include FLC (1 billion VND), VNPT (1 billion VND), Vietcombank (1 billion VND), Tuan Chau Group (1 billion VND), Vietnam Oil and Gas Group and Phu My Fertilizer (1.2 billion VND), Hung Thinh Group (3 billion VND)...

According to Clause 2, Article 3 of the 2007 Law on Personal Income Tax, taxable income from salaries and wages includes:

a) Salaries, wages and amounts of the nature of salaries and wages;

b) Allowances and subsidies, except for allowances and subsidies prescribed by law on preferential treatment for people with meritorious services, national defense and security allowances, toxic and dangerous allowances for industries, occupations or jobs in workplaces with toxic and dangerous factors, attraction allowances, regional allowances prescribed by law, sudden hardship allowances, occupational accident and disease allowances, one-time allowances for childbirth or adoption, allowances for reduced working capacity, one-time retirement allowances, monthly death benefits, severance allowances, unemployment allowances prescribed by the Labor Code, other allowances paid by Social Insurance, allowances for resolving social evils;

c) Remuneration in various forms;

d) Money received from participation in business associations, boards of directors, supervisory boards, management boards and organizations;

d) Other benefits that the taxpayer receives in cash or non-cash form;

e) Bonuses, except for bonuses accompanying titles conferred by the State, bonuses accompanying national awards, international awards, bonuses for technical improvements, inventions, and discoveries recognized by competent State agencies, bonuses for detecting and reporting violations of the law to competent State agencies.

Point e Clause 2 Article 2 Circular 111/2013/TT-BTC also clearly states that bonuses in cash or non-cash in any form, including bonuses in securities, are subject to personal income tax, except for the following bonuses:

e.1) Bonuses accompanying titles conferred by the State, including bonuses accompanying emulation titles, forms of commendation according to the provisions of law on emulation and commendation, specifically:

e.1.1) Bonuses accompanying emulation titles such as National Emulation Fighter; Emulation Fighter at the level of ministries, branches, central organizations, provinces, centrally-run cities; Emulation Fighter at the grassroots level, Advanced Worker, Advanced Fighter.

e.1.2) Bonuses accompanying other forms of rewards.

e.1.3) Bonuses accompanying titles conferred by the State.

e.1.4) Bonuses accompanying awards given by associations and organizations belonging to central and local political organizations, socio-political organizations, social organizations, and socio-professional organizations in accordance with the charters of such organizations and in accordance with the provisions of the Law on Emulation and Commendation.

e.1.5) Bonuses accompanying Ho Chi Minh Prize and State Prize.

e.1.6) Bonuses with medals and badges.

e.1.7) Bonuses with certificates of merit.

The authority to decide on rewards, the amount of rewards accompanying the above emulation titles and forms of rewards must comply with the provisions of the Law on Emulation and Rewards.

e.2) Bonuses accompanying national and international awards recognized by the Vietnamese State.

e.3) Bonuses for technical improvements, inventions and discoveries recognized by competent state agencies.

e.4) Rewards for detecting and reporting violations of the law to competent state agencies.