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Businesses supporting staffs by paying bonuses early
A lot of businesses have decided to pay bonuses to their staffs right now, in mid June, instead of the end of the year as in previous years, in order to help the staffs avoid being taxed.
The National Assembly on June 19 decided that all salaries and wages individuals get in July will be subject to personal income tax (PIT). Only income received in the first six months of the year is tax exempt.
As a result, some businesses have taken the initiative of paying their yearly bonuses to staffs this month to help them avoid the burden of the PIT.
Director of a telecom company in Hanoi said that the board of directors has decided to pay June’s salary to its staff right in June instead of early July as usual. The move by the company’s leadership has naturally been applauded by the staff.
Director of the HCM City branch of a securities company has also decided to make good on non-salary items (called ‘soft income’), including brokerage commissions and bonuses, this month. In previous years, these earnings were calculated and paid once at the end of the year.
The director said that the early payment will help his staff to save a relatively big sum of money.
He went on to say that the warming up of the stock market has helped securities companies to flourish: “We will have to give bonuses to staff anyway. As the company now has money in its coffers, we have decided to give bonuses right now, which we hope will help make staff happier because they can have ‘fresh’ money to spend and can avoid tax as well,” he said.
The director revealed that the plan was drawn up right in early June and that the company planned to initiate it right after the decision was announced by the National Assembly.
According to General Director of Vina Head Hunter Lam Quang Vinh, many companies are trying to support their staffs in different ways. One of the ways is to pay salaries and bonuses earlier than previously planned.
“This proves to be a reasonable way to support staff, and if this does not violate the current laws, we will consider doing this,” he said.
VietNamNet, VNE
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