Many workers are concerned when their actual Tet bonus is 10% less than the amount they signed for due to personal income tax deduction.
Tax experts affirm that the temporary deduction of personal income tax (PIT) on Tet bonuses is in accordance with current regulations.
According to Clause 2, Article 3 of the current Personal Income Tax Law and Clause 2, Article 2 of Circular 111/2013 of the Ministry of Finance, Tet bonuses in the form of cash, in kind or other forms are included in income from salaries and wages to serve as the basis for tax calculation.
Because the Tet bonus is determined based on production and business results and the employee's level of work completion, it is considered income in the nature of salary or wages, subject to personal income tax.
The Tet bonus amount will be added to the individual's annual income and will be subject to personal income tax according to the progressive tax table as prescribed.
Currently, when paying Tet bonuses, organizations and businesses usually temporarily deduct 10% of the employee's personal income tax. There are also cases where a higher deduction is applied because it is based on the tax rate that the employee has previously paid personal income tax.
Short-term workers (seasonal or less than 1 year) will also have 10% temporarily deducted for amounts of VND 2 million/time or more according to regulations on casual income.
After calculating the total annual income, including family deductions, compulsory insurance, etc., employees whose total income is lower than the level subject to personal income tax can apply for a tax refund for the 10% temporarily deducted from the Tet bonus.
However, it should be noted that personal income tax on Tet bonuses is calculated based on monthly income and applies progressive tax. For example, if an employee has an income of VND12 million/month and receives a Tet bonus of VND20 million, the total income in that month will be up to VND32 million, leading to the possibility of being taxed at a higher level than the monthly income tax rate, and the personal income tax payable may be up to more than VND3 million.
In case an organization or enterprise gives Tet gifts in kind to employees, it must issue an invoice according to the provisions of Clause 1, Article 4 and must fully record the content according to the provisions of Article 10 of Decree No. 123/2020/ND-CP.
Special types of goods and services exported in a periodic manner are listed in a list of goods and services sold with invoices as prescribed in Clause 6, Article 10 of Decree No. 123/2020/ND-CP.
Also according to current regulations, some bonuses are exempt from personal income tax, including: bonuses associated with emulation titles conferred by the State (National Emulation Fighter, Advanced Worker or awards conferred by the State to recognize outstanding contributions of individuals in the fields of labor and study); Bonuses from national and international awards recognized by the State (Ho Chi Minh Award, national or international science and culture awards)...
According to statistics from the Ministry of Labor, War Invalids and Social Affairs, the average Lunar New Year bonus in 2025 is 7.72 million VND/person, an increase of 13% compared to the Lunar New Year bonus in 2024 - 6.85 million VND/person.