42 billion U23 team bonus: General Department of Taxation meets to consider immediate collection
Affirming: "There is no tax exemption for bonuses for the Vietnam U23 team", the source said: Yesterday (March 1), the General Director of the General Department of Taxation met with relevant parties to find a way to calculate taxes on the huge bonuses that the U23 team received.
Yesterday afternoon (March 1), the General Director of the General Department of Taxation held a meeting with relevant parties to propose a plan to calculate personal income tax on the huge bonuses that the U23 Vietnam team received after the recent tournament.
After agreeing on the plan, the General Department of Taxation will submit it to the Ministry of Finance for consideration and decision. It is expected that next week, the General Department of Taxation and the Ministry of Finance will announce how much tax will be paid or how specific tax exemptions will be applied to each bonus.
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| Before Lunar New Year, U23 Vietnam was promised a bonus of 42.8 billion VND, not including gifts in kind. |
A leader of the General Department of Taxation said: "Tax payment will be based on each specific case. If tax payment is necessary, we will be responsible for providing guidance and ensuring compliance with legal regulations. Tax collection ensures fairness and transparency. Everyone can be completely assured."
Previously, the success at the U23 Asian Cup helped the U23 Vietnam team receive a "shower" of bonuses, gifts and services. Specifically, according to VFF, before Tet, the U23 Vietnam team was promised 42.8 billion VND in rewards, not including gifts in kind.
VFF leaders also said that as of February 27, over 80%, nearly 90% of the bonuses had reached the Federation. VFF representatives said that due to the lack of clear documents on tax exemption, VFF will deduct 35% of the tax on the bonuses of U23 Vietnam. VFF has also worked with the players on this issue so that they understand the State's personal tax regulations.
The press has previously made many comments on the method of calculating income tax on bonuses. Accordingly, some opinions say that the above bonuses will not be subject to tax, while others suggest the figure of 35%.
Mr. Nguyen Anh Tri - Deputy General Department of Taxation affirmed that giving such a large bonus amount and then affirming that one will have to pay 10%, 35% or not have to pay anything is completely inaccurate.
Mr. Tri affirmed that whether or not to pay tax must be based on the nature of that income, whether it is taxable income or not, it cannot be said in general as "bonus".
"Players only have to pay personal income tax on taxable income according to the provisions of the Personal Income Tax Law," said Mr. Tri.
Mr. Nguyen Dai Tri explained that according to current regulations, only bonuses (in cash or in kind) included in the income group from salaries and wages (which are income that employees receive from employers) will be subject to personal income tax.
The following bonuses are not subject to personal income tax: Bonuses awarded by the State, bonuses according to emulation titles, forms of commendation according to the law on emulation; bonuses accompanying national and international awards recognized by the Vietnamese State; bonuses for technical improvements and inventions recognized by State agencies; Bonuses for detecting and reporting violations of the law to competent State agencies.
Thus, players who receive the above bonuses will not have to pay taxes. Mr. Tri gave an example: Coach Park Hang Seo and player Nguyen Quang Hai, Goalkeeper Bui Tien Dung received bonuses with the Third Class Labor Medal from the President, or received bonuses from the recent U23 Asian Football Championship from the Asian Football Confederation will not have to pay taxes.
As for bonuses from the Vietnam Football Federation, the Ministry of Culture, Sports and Tourism or other organizations and enterprises that reward or give to each player as reported by the press, it is necessary to consider the basis of these organizations' rewards and gifts; the purpose of these rewards and gifts to determine whether the reward is in the nature of salary or wages or a reward according to titles awarded by the state, or a reward according to the Law on Emulation and Commendation.
In addition, according to Mr. Tri, in the case where the bonus money is for the collective and is not divided among individuals but is used for common purposes, it will not be included in the individual's income tax, for example, the bonus that comes with the First Class Labor Medal awarded by the President to U23 Vietnam.