In 2018, the General Department of Taxation issued Official Letter No. 1324/TCT-TNCN dated April 16, providing specific regulations on personal income tax (PIT) for prizes awarded to the Vietnamese football team. The tax rates vary depending on the source and nature of the prizes.
Prizes received for achievements in national or internationally recognized competitions, such as championships or runner-up titles, are exempt from PIT as they are considered incentives under the Law on Competition and Emulation. This exemption is a well-deserved recognition of the players’ and coaching staff’s contributions.
Prizes in the form of medals and badges received by the Vietnamese football team after winning the 2024 ASEAN Cup are exempt from personal income tax.
On the other hand, prizes awarded by 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 rate is either 10% for income over 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 prize recipient must finalize their tax calculation as per regulations.
“Tax deduction will be based on the progressive tax scale or a 10% deduction for income over 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 General Department of Taxation, 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 the gift. The personal income tax treatment for prizes received by the Vietnamese football team depends on the source and nature of the prizes.
