In 2018, the General Department of Taxation issued Circular No. 1324/TCT-TNCN on April 16th, providing specific guidance on personal income tax (PIT) obligations for football players in Vietnam regarding their bonus earnings. The tax treatment varies depending on the nature and source of the bonuses.
Bonuses awarded for achievements in national or internationally recognized competitions, such as becoming champions or runners-up, are exempt from PIT. This exemption serves as a rightful acknowledgment of the players’ and coaching staff’s dedication and contributions to the sport.
Bonuses accompanied by medals and badges awarded to the Vietnamese football team after their championship win at the 2024 ASEAN Cup will be exempt from personal income tax.
Conversely, bonuses received from corporations, businesses, organizations, or individuals that are considered salary or wage income, or those paid according to the financial regulations of the Vietnam Football Federation, are subject to PIT. The applicable tax rate is either 10% for income above VND 2 million per payment or the progressive tax rate based on the individual’s employment contract. At the end of the year, the bonus recipient must perform tax finalization as per regulations.
“The tax deduction will be based on the progressive tax rate 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 authority, if an individual receives gifts in the form of securities, capital in economic organizations, real estate, or other assets that require registration of ownership or use rights, they are subject to PIT on the value of those gifts. The tax treatment of bonuses for the Vietnamese football team depends on the nature and source of the bonuses received.
Do Bonuses for the Vietnam National Football Team Have to Pay Personal Income Tax?
At a press conference held by the Ministry of Finance on January 7, Deputy Director of the General Department of Taxation, Mai Son, clarified that the monetary bonuses accompanied by commemorative medals and badges awarded to the Vietnamese football players following their victory in the 2024 ASEAN Cup are exempt from personal income tax.
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