Headlines 05/12/2017 09:19 SA

Things that enterprises should notice when paying Tet holiday bonuses

Thành Đạt

Despite exempt from laws currently in force, this payment must be realized as an employee bonus.

PHÁP LÝ KHỞI NGHIỆP (STARTUPS LEGAL SUPPORT) would like to provide you with the following important information related to payment of Tet holiday bonuses to employees.

1. Is an enterprise obliged to pay Tet holiday bonuses?

The 2012 Labor Code currently in force does not prescribe that enterprises (employers) are obliged to pay their employees Tet holiday bonuses. Notwithstanding this fact, paragraph 1 Article 103 of this Code stipulates that bonuses are determined based on an enterprise’s annual business income and employee’s performance. 

Therefore, enterprises may give no bonuses to employees if they do not earn any business profit and employees fail to give their expected performance at work.

2. Are Tet holiday bonuses paid in cash or in kind?

Laws currently in force do not set out any regulation that employers are bound to or have to make payment of Tet holiday bonus, in any form or according to any method, and whether in cash or in kind.

Form of Tet holiday bonus enterprises may pay their employees varies depending on the corporate culture and actual conditions of each enterprise. 

3. Tax obligations that may arise from payment of Tet holiday bonuses

Tet holiday bonuses paid employees are accounted for as tax-deductible expenses during determination of income subject to the corporate income tax in accordance with Article 4 of the Circular No. 96/2015/TT-BTC providing guidance on the corporate income tax and must be clearly specified in the enterprise’s Rules of payment of Tet holiday bonuses or in employment contracts. Simultaneously, enterprises must ensure that information about bonus requirements, rates and specific bonus items, etc. are widely made known to all of their employees.

Employees should be aware that Tet holiday bonuses that they have received will be subject to the personal income tax as provided by paragraph 2 Article 2 of the Circular No. 111/2013/TT-BTC giving guides to the personal income tax.

4. Institution of “Rules of payment of Tet holiday bonuses"

The Rules of payment of Tet holiday bonuses will be decided and made publicly available at workplace after consultation with intra-company employee representation organizations.

It is indispensable for issuance of the written text of the Rules that prescribe persons eligible for such bonus, bonus requirements, calculation method and rates because the Rules serve as the legitimate ground and conditions owing to which bonuses are considered reasonable expenses accepted as assessable income on which the personal income tax is levied.   

Additionally, you can see forms or sample documents and laws on other bonus rules by clicking at Establishment of the enterprise’s Rules of bonus payment.

PHÁP LÝ KHỞI NGHIỆP (STARTUPS LEGAL SUPPORT) would like to invite you to visit our sample Rules of Tet holiday bonus payment at:


Legal bases:

- The 2012 Civil Code.

- The Circular No. 96/2015/TT-BTC .

- The Circular No. 111/2013/TT-BTC



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