VI Regarding rewards for employees’ children on International Children’s Day 2026, which are considered other benefits the employee receives, they are included in the employee’s taxable income from salaries and wages. Let’s explore this further with Pham Consult!
Are rewards for employees’ children on International Children’s Day 2026 included in the employee’s taxable income?
Accordingly, rewards for employees’ children on International Children’s Day 2026, which are considered other benefits the employee receives, are included in the employee’s taxable income from salaries and wages.
Based on point d.7, clause 2, Article 2 of Circular 111/2013/TT-BTC on Taxable Income:
Taxable Income
According to Article 3 of the Personal Income Tax Law and Article 3 of Decree No. 65/2013/ND-CP, taxable personal income includes:
- Income from salaries and wages
Income from salaries and wages is income received by employees from employers, including:
- d) Monetary or non-monetary benefits other than salaries and wages paid by the employer that the taxpayer receives in any form:
d.7) Other benefits.
Other benefits that the employer provides to employees such as: expenses during holidays; hiring consulting services, hiring tax preparation services for a specific individual or group of individuals; Expenses for domestic helpers such as drivers, cooks, and other household workers under contract…
At the same time, according to Official Letter 84810/CTHN-TTHT of 2023 on personal income tax policy for employee welfare expenses, corporate income tax policy, and invoices for sponsored expenses:
Based on the above regulations, the Hanoi City Tax Department has the following opinion:
In the case where the Hospital spends money on rewards for employees’ children, which are considered other benefits the employees are entitled to, it should be included in the taxable income from salaries and wages of the employees.
Therefore, expenses for rewards for employees’ children, which are considered other benefits the employees are entitled to, should be included in the taxable income from salaries and wages of the employees.
When are expenses for rewards for employees’ children with good academic achievements not deductible when determining taxable income for corporate income tax purposes?
Based on Article 10 of Decree 320/2025/ND-CP on Non-Deductible Expenses When Determining Taxable Income:
Non-Deductible Expenses When Determining Taxable Income
Non-Deductible expenses when determining taxable income are implemented according to the provisions of Clause 2, Article 9 of the Corporate Income Tax Law, specifically as follows:
- The portion of expenses exceeding the prescribed limit for the following expenses:
- d) The portion of expenses for direct welfare benefits for employees exceeding 01 month’s average actual salary paid in the tax year, including: Expenses for funerals and weddings of the employee and their family; vacation expenses; expenses for medical treatment and examination; expenses for supplementary education at educational institutions and vocational training centers; expenses for supporting employee families affected by natural disasters, epidemics, accidents, or illness; expenses for rewarding employees’ children with good academic achievements; Expenses for supporting travel costs during holidays and Tet (Lunar New Year) for employees; accident insurance (excluding mandatory accident insurance as stipulated by specialized laws), health insurance, and other voluntary insurance for employees (excluding contributions to supplementary retirement insurance as stipulated by the Social Insurance Law, life insurance for employees, and voluntary retirement insurance for employees as guided in point d of this clause) and other welfare-related expenses, specifically as follows:
Therefore, the portion of expenses for rewarding employees’ children with good academic achievements exceeding the prescribed limit and not meeting the conditions stipulated in Clause 1, Article 9 of Decree 320/2025/ND-CP is not deductible when determining taxable income for Corporate Income Tax, specifically:
The portion of expenses for rewarding employees’ children with good academic achievements exceeding one month’s average actual salary in the tax year.
In which:
(i) The determination of the actual average monthly salary paid during the tax year of the enterprise is calculated by dividing the total salary fund for the year by 12 months.
If the enterprise operates for less than 12 months, the determination of the actual average monthly salary paid during the tax year is calculated by dividing the total salary fund for the year by the actual number of months of operation in the year;
(ii) The actual salary fund is the total amount of actual salaries paid in that tax year up to the deadline for submitting the tax return as prescribed (excluding the amount of salary reserve fund from the previous year that was spent in the tax year).
Regarding the amount of bonuses paid to employees’ children with good academic achievements, if it meets the prescribed limits and fulfills all the conditions specified in Clause 1, Article 9 of Decree 320/2025/ND-CP, it is deductible when determining taxable income for corporate income tax purposes.
