The General Department of Taxation shared that in 2018, they issued Official Letter No. 1324/TCT-TNCN dated April 16, providing specific regulations on personal income tax (PIT) for bonus payments to the Vietnamese national football team. Depending on the source and nature of the bonus, different tax rates apply.
Bonuses from achievements in national or internationally recognized competitions, such as winning a championship or becoming a runner-up, are exempt from PIT as they are considered encouraging awards according to the Law on Competition and Emulation. This exemption is a well-deserved recognition of the players’ and coaching staff’s dedication and achievements.
Bonuses accompanied by medals and badges awarded to the Vietnamese football team after their ASEAN Cup 2024 victory will be exempt from personal income tax.
Conversely, bonuses from corporations, businesses, organizations, or individuals that are considered salary or wage income, or paid according to the financial regulations of the Vietnam Football Federation, are subject to PIT. The tax deduction rate is 10% for income above VND 2 million per payment or based on the progressive tax scale, depending on the individual’s employment contract. At the end of the year, the bonus recipient must finalize their tax calculation as per regulations.
“Tax deductions will be based on the progressive tax scale or a 10% deduction for income above VND 2 million per payment, depending on the employment contracts of the players, coaches, and team members,” said Mr. Mai Son, Deputy Director-General of the General Department of Taxation.
According to the Taxation representative, if an individual receives a gift in the form of securities, capital in economic organizations, real estate, or other assets that require registration of ownership or use, they must pay PIT on the income from receiving such gifts. The personal income tax treatment for bonus payments to the Vietnamese national football team depends on the source and nature of the bonus received.
