Are employee bonuses taxable?
In cases where a company pays a bonus to its employees, and that bonus includes housing allowance, the housing allowance included in the bonus is considered income from salaries and wages, but it must not exceed 15% of the total taxable income generated.
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| Illustration (IT). |
A trading company employs foreign workers whose salaries include housing allowance. Each month, the company pays personal income tax, and the taxable income related to housing allowance is included in the salary.
The company currently has a bonus policy for foreign employees, which is one month's salary including housing allowance. The company representative asked whether the company is required to pay tax on the housing allowance included in the bonus.
Regarding this matter, the General Department of Taxation, Ministry of Finance, has the following opinion:
Clause 2, Article 11 of Circular No. 92/2015/TT-BTC dated June 15, 2015, issued by the Ministry of Finance, amending and supplementing Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance, guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing a number of articles of the Law on Personal Income Tax, and Government Decree No. 65/2013/ND-CP detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax, stipulates that income from salaries and wages includes:
"The amount paid by the employer for rent, utilities, and related services (if any) for housing is included in taxable income based on the actual amount paid, but not exceeding 15% of the total taxable income generated (excluding rent, utilities, and related services (if any) at the unit regardless of where the income is paid)."
Based on the above guidelines, if a company pays bonuses to its employees, and the bonus includes housing allowance, then the housing allowance included in the bonus is considered income from salaries and wages, but it must not exceed 15% of the total taxable income generated.
Workers can receive a pension after 15 years of service.
(Baonghean.vn) - Workers who contribute to social insurance for 15 years will receive a pension upon retirement (currently 20 years).
