After receiving record bonus, U23 Vietnam must pay huge tax

Immediately after the Vietnam U23 team defeated Qatar U23 to win the right to play in the final match of the 2018 U23 Asia, many units, individuals and organizations offered record bonuses to individuals and groups in the team.

Record bonus amount of U23 Vietnam

Up to now, the bonus of the Vietnam U23 team has reached more than 20 billion VND. This is an unprecedented high number for a Vietnamese men's football team.

Specifically, in the qualifying round and right after the quarter-final match with U23 Iraq, the Vietnam U23 team received a bonus of 2.6 billion VND from the Vietnam Football Federation and a number of businesses.

Meanwhile, the historic victory over U23 Qatar has increased the bonus by nearly 10 times. The businesses that have promised the most in this event are: Vietcombank (1 billion VND); Group Corporation (1 billion VND); Tuan Chau Corporation (1 billion VND); FLC (1 billion VND),...

In addition, the Ministry of Culture - Sports - Tourism decided to reward U23 Vietnam 1.2 billion VND, Ho Chi Minh City People's Committee awarded 2 billion VND, Hanoi People's Committee also awarded 1 billion VND, Da Nang City People's Committee 1 billion VND,...

Many domestic enterprises also generously rewarded the Vietnamese team with gifts or some accompanying services after their convincing performance, which delighted the fans. However, this amount of money certainly has not stopped yet.

"A series of agencies and businesses have called to announce rewards for U23 Vietnam. This number is now up to tens of billions of VND, VFF has not been able to count it all. U23 Vietnam fought with a spirit of dedication, surpassing their own limits. They deserve the praise" - VFF Vice President, Mr. Tran Quoc Tuan shared.

Still have to pay taxes according to the law

With a record high bonus, the Vietnam U23 team still has to pay taxes according to the Personal Income Tax Law.

Lawyer Nguyen Son Tung, Chairman and Managing Attorney of Legal United Law, said that from a legal perspective, the bonuses of the Vietnam U23 team should be understood as promised bonuses according to the provisions of Article 570 of the 2015 Civil Code, instead of being understood as bonuses according to the provisions of the Labor Law.

With a total bonus of more than 20 billion VND, the U23 Vietnam team may have to pay the highest tax rate of up to 35%, equivalent to 6 billion VND in taxes.

Pursuant to the provisions of the Law on Personal Income Tax, Decree No. 65/2013/ND-CP of the Government or Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, "rewards in cash or non-cash in any form, including bonuses in securities" that are not excluded are subject to personal income tax.

Lawyer Tung said that any bonuses for U23 that "have origins" other than bonuses accompanying awards awarded by associations and organizations belonging to political organizations, socio-political organizations, social organizations, and socio-professional organizations of the Central and local levels in accordance with the provisions of law, or any bonuses that are not accompanied by emulation titles or State titles of commendation accompanied by other forms of commendation, must be subject to personal income tax.

With a total bonus of more than 20 billion VND, the U23 Vietnam team may have to pay the highest tax rate of up to 35%, equivalent to 6 billion VND in taxes. Surely the bonus amount has not stopped at 20 billion VND, so the tax that the U23 Vietnam team has to pay will still increase after that.