What taxes and fees must be paid for the 2021 Tet bonus?

vietnamnet.vn• DNUM_BAZABZCACB 07:06

As Tet approaches, the story of Tet bonuses has become a "hot" topic, attracting the attention and discussion of many people, but many people are still unclear about what taxes and fees will be paid on Tet bonuses?

There is about 1 month left until Lunar New Year. From now until Lunar New Year, businesses will start paying bonuses and 13th month salary to employees and workers in the company.

MoneyTet bonusAlso known as 13th month salary, but the current Labor Code does not use the term "13th month salary". In terms of nature, "13th month salary" is a bonus that employers give to employees based on annual production and business results and the level of work completion of employees.

According to Clause 2, Article 2 of Circular 111/2013/TT-BTC, income from salaries and wages is taxable income.personal income tax(PIT). Including cash or non-cash bonuses in any form.

Thus, Tet bonus and 13th month salary are income subject to personal income tax. However, employees only have to pay tax after deducting deductions that are still positive (deduction for themselves of 9 million VND/month; family deduction for dependents of 3.6 million VND/month each, other deductions, insurance premiums).

If the employer gives the Tet bonus and 13th month salary in which month (calendar month), then add the bonus and 13th month salary to the salary the employee receives in that month and then calculate taxable income.

Người lao động mong chờ tiền thưởng Tết nhưng không phải ai cũng hiểu các quy định về thuế, phí

Workers expect Tet bonuses but not everyone understands tax and fee regulations.

According to the provisions of Clause 2, Article 3, Circular 25/2018/TT-BTC, the Tet bonus for employees, if the conditions for enjoyment and the level of enjoyment are specifically recorded in one of the following documents, will be included in deductible expenses when determining taxable income for corporate income tax: Labor contract; Collective labor agreement; Financial regulations of the Company, Corporation, Group; Bonus regulations prescribed by the Chairman of the Board of Directors, General Director, Director according to the financial regulations of the Company, Corporation.

Besides, many workers are wondering whether Tet bonuses are subject to social insurance, representativesMinistry of Labor, Invalids and Social Affairssaid, Clause 3, Article 30 of Circular 59/2015/TT-BLDTBXH stipulates that the monthly salary for compulsory social insurance (SI) does not include other benefits and welfare such as bonuses, initiative bonuses; mid-shift meal allowance... Therefore, the Tet bonus ofworkerwill not be used as a basis for calculating social insurance contributions.

In addition, according to Article 104 of the 2019 Labor Code, Tet 2021, employers can reward employees with assets or other forms other than money such as travel, train tickets to return home; or valuable items such as household appliances, motorbikes, cars, food, etc. but must still consult the opinion of the organization representing employees at the facility. In addition, businesses must publicize the bonus regulations at the workplace, if violated, they will be fined from 2-5 million VND.