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 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 scale, depending on the individual’s employment contract. At the end of the year, the bonus recipient must finalize their tax obligations through an annual tax settlement.
“The tax deduction will be based on either the progressive tax scale or a 10% rate 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 tax authority, if individuals receive gifts in the form of securities, capital contributions in economic organizations, real estate, or other assets subject to ownership or usage registration, they are required to pay PIT on the value of these gifts. The tax treatment of bonuses earned by the Vietnamese football team ultimately depends on the nature and source of the bonuses received.
