On October 28th, 2024, the Da Nang City Tax Department issued Official Letter No. 8315/CTDAN-TTHT, accordingly:
In case an employee receives cash or in-kind rewards from participating in competitions with prizes or other forms of prize-winning organized by Company, if this is determined as income from winning prizes according to Point đ, Clause 6, Article 2 of Circular No. 111/2013/TT-BTC, the prize value exceeding VND 10 million that the winning individual receives without deducting any expenses is taxable income for PIT, the Company is required to deduct PIT before paying the prize to the winning individual according to the guidance in Article 15 of Circular No. 111/2013/TT-BTC (as amended and supplemented above).
These welfare expenses, if meeting the conditions as guidance in Clause 1 and Point 2.30, Clause 2, Article 6 of Circula No. 78/2014/TT-BTC (as amended and supplemented above), then these expenses are deductible when determining taxable income for CIT.