Is lucky money subject to personal income tax?

(NLDO) - During Tet, some individuals wonder if they have to pay personal income tax after receiving 5-10 million VND from businesses?

Ms. Le Thi Diep, an employee of a company in Ho Chi Minh City, on the first working day of the new year (the 6th day of Tet) received a total of 10 million VND from her company and colleagues.

"With this amount of money, I don't know if I have to pay personal income tax (PIT) or not?" - Ms. Diep wondered.

Talking to a reporter from the Lao Dong Newspaper, Mr. Nguyen Van Duoc, Head of the Policy Department - Ho Chi Minh City Tax Consultants and Agents Association, said that currently, tax laws stipulate that income from gifts of assets associated with registered ownership such as stocks, real estate, cars, etc. must pay personal income tax. Cash gifts are not subject to personal income tax.

Therefore, individuals who receive billions of dong from others or employees who receive millions of dong from their employers' pocket money during the New Year do not have to pay personal income tax.

However, according to Mr. Duoc, tax law also stipulates that if the nature of the lucky money is a bonus, and the enterprise takes it from its own funds to pay to employees, then it is income from salaries and wages that is recorded in the books and must be taxed.

Therefore, the recipient of lucky money originating from bonuses from enterprises must pay personal income tax in installments.

Source: https://nld.com.vn/tien-li-xi-co-phai-nop-thue-thu-nhap-ca-nhan-196250204121816742.htm