How will the bonus of the Vietnamese men's football team after winning the AFF Cup be taxed?

The Vietnam National Men's Football Team has just won the AFF Cup championship, many organizations have encouraged and motivated the players and coaching staff, with the bonus currently reaching more than 33 billion VND. With the above bonus, how will the Vietnam Men's Football Team pay personal income tax (PIT)?

To promptly encourage and motivate the players and coaching staff, Hanoi City decided to give 2 billion VND to the Vietnamese team; Saigon - Hanoi Commercial Joint Stock Bank (SHB) awarded 2 billion VND to the "golden star warriors" right before the 2 matches with Thailand; Loc Phat Commercial Joint Stock Bank (LPBank) awarded 3 billion VND; Vietnam Bank for Agriculture and Rural Development (Agribank) will also award 1 billion VND to the team.

In addition to banks, the Vietnamese team also received a bonus from the Southeast Asian Football Federation (AFF) for winning the championship, with a bonus of more than 300,000 USD (equivalent to 7.6 billion VND). Many other corporations, businesses, organizations and individuals also pledged to give bonuses worth billions of VND.

Thus, up to now, the total amount of money that organizations and businesses have committed to reward the Vietnamese team after winning the 2024 ASEAN Cup has exceeded 1.3 million USD, equivalent to nearly 33 billion VND (this number may increase).

Sharing at the recent press conference of the Ministry of Finance, Mr. Mai Son, Deputy Director General of the General Department of Taxation (Ministry of Finance) said that according to the current regulations of the Law on Personal Income Tax, bonuses of individuals and organizations associated with medals and commemorative medals will not be subject to tax. However, bonuses not associated with medals and commemorative medals such as bonuses that organizations and businesses committed to award to the Vietnamese football team will be subject to personal income tax.

Mr. Mai Son, Deputy General Director of the General Department of Taxation (Ministry of Finance) informed about personal income tax related to the bonus the Vietnamese men's football team recently received.

According to the General Department of Taxation, bonuses from national and international tournaments recognized by the State of Vietnam are bonuses received from achievements in national or international tournaments, such as championship or runner-up, recognized by the State of Vietnam and bonuses according to the provisions of the Law on Emulation and Commendation will not be included in personal income taxable income.

For bonuses from other organizations and individuals such as bonuses from economic corporations, banks, businesses, organizations or individuals for teams or individual players, coaches, if they are in the nature of salaries, wages or are implemented according to financial regulations on revenue and expenditure, bonuses of the Vietnam Football Federation... will be included in income subject to personal income tax.

The General Department of Taxation also said that tax deductions will be made according to the Progressive Tax Schedule or a 10% deduction for incomes of VND2 million or more per time, depending on the labor contracts of players, coaches and team members. At the end of the year, individuals will make tax settlements according to regulations.

In addition, if an individual receives a gift in the form of securities, capital in economic organizations, real estate or other assets that require registration of ownership or usage rights, he/she must pay personal income tax on income from receiving the gift.

Paying personal income tax on bonuses of the Vietnam football team depends on the source and nature of the bonus received.

In addition, according to Decree No. 152/2018 of the Government, each Vietnamese athlete who wins a Gold Medal in the Southeast Asian tournament will be awarded 40 million VND. The Vietnamese men's football team participating in the ASEAN Cup has 26 players, so the total bonus is more than 1 billion VND/player. Thus, in addition to the AFF's money and the bonus according to Decree 152, all the money that businesses commit to reward the Vietnamese team after winning the 2024 ASEAN Cup will be subject to a 10% tax.

Source: https://thoibaonganhang.vn/tien-thuong-cua-doi-tuyen-bong-da-nam-viet-nam-sau-vo-dich-aff-cup-se-tinh-thue-ra-sao-159707.html