Do I have to pay personal income tax if I receive a 2026 Tet bonus?
To know how much Tet bonus is subject to personal income tax, readers need to understand the formula for calculating personal income tax.
Tet bonus is the amount of money that employers give to employees based on the results of production, business, and the level of work completion of the employee. To know exactly how much Tet bonus must be paid for personal income tax, you need to understand the formula for calculating personal income tax.
Tet salary and bonus are income subject to personal income tax as prescribed in Clause 2, Article 3 of the Law on Personal Income Tax.
According to Article 8 of the Law on Personal Income Tax, personal income tax on income from salaries and wages of residential individuals is determined by income calculated as taxpayer (x) with tax rate in the Partial progressive tax table.
Personal income tax = Taxable income X Tax rate
Taxable income on income from wages and wages is the total taxable income that taxpayers receive during the tax calculation period, except for (-) on social insurance, health insurance, unemployment insurance, professional liability insurance contributions for some industries and occupations that must participate in compulsory insurance...
At the same time, according to Article 10 of the Law on Personal Income Tax, before calculating tax on income from salaries and wages of taxpayers who are residential individuals, taxpayers are also deducted from taxable income with a family deduction level including:
- The deduction for taxpayers is 15.5 million VND/month (186 million VND/year);
- The deduction for each dependent is 6.2 million VND/month.
Accordingly:
Taxable income = Taxable income Insurance contributions Household deductions
Thus, employees will have to pay taxes when they have taxable income > 0. That is, after deducting insurance premiums and family deductions for total taxable income (including wages and Tet bonuses) greater than 0, employees must pay taxes:
(Salary + Tet bonus) - Insurance contributions - family deduction > 0
If there is income for tax calculation, employees will calculate personal income tax according to the progressive tax rate table prescribed in Article 9 of the Law on Personal Income Tax as follows:
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