Bonus, rewards given to employees in Vietnam

Hi DMS Attorney in Vietnam! Could you advise me about conditions for bonuses, rewards given to employees are considered as deductible expenses for determining corporate taxable income ? 

Hi!

Non-deductible expenses for determining taxable income, includes:

Salaries, bonuses, life insurance for employees for which the conditions for entitlement and rates of entitlement are not specified in one of the following documents: labor contract; collective labor agreement; financial regulations of the company, corporation or group; reward regulations issued by the chairman of the Board of Directors, General director or Director under the financial regulations of the company or corporation (Point 2.6.b Clause 2 Article 6 Circular No. 26/VBHN-BTC dated 09/14/2015);

Expenditure on innovation and improvement rewards where enterprises have no specific regulations on such rewards and have no council for test and acceptance of innovations and improvements (Point 2.8 Clause 2 Article 6 Circular No. 26/VBHN-BTC dated 09/14/2015);

Therefore, for bonuses given to employees are deductible when determining taxable income, an enterprise is required to write conditions and rates of entitlement in a document such as: labor contract, collective labor agreement or other internal regulations./.

Related topics:

Corporate Income Tax (CIT) rates in Vietnam

Corporate Income Tax exemption and reduction in Vietnam

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Bonus, rewards given to employees in Vietnam