Are high taxes on big Tet bonuses justified?

Many readers shared their opinions on whether taxing Tet bonuses is fair, discussing its impact on workers, employers, and the broader Vietnamese economy.

A person is checking numbers in a report. Illustration photo by Pexels

A reader nicknamed Nong Dan said: "I'd love a VND50 million Tet bonus and wouldn't mind paying VND20 million in taxes. Taxes are the social duty of high-income earners, and we should feel proud to contribute to society instead of feeling sorry for our lost money."

A reader nicknamed Bot commented: "If your annual income is below VND132 million, you can claim a tax refund. If you earn more than that, don't be surprised when you must pay extra taxes. Some people believe Tet bonuses shouldn't be taxed. But if that happened, employers might lower monthly salaries, promise big year-end bonuses, and then fire employees before Tet. Would that be a fair system? A high Tet bonus reflects your high earnings. Paying more taxes might seem discouraging, but it shows your valuable contributions to the company and the economy. That's something to be proud of."

A reader nicknamed Test shared a perspective on a bigger picture from losing part of a bonus to taxes: "People should think beyond the immediate concern. Receiving Tet bonuses shows that your hard work and contributions are recognized. Taxes, on the other hand, sustain the systems and infrastructure that support your work. Without them, dreams of better roads and public services will stay out of reach. Take a look at more developed countries. Their tax rates can reach 40-50% of a person's income in these places.

That said, authorities should consider raising the minimum range for taxable income and tax deductions to reflect Vietnamese family conditions.

Using regional minimum wages as a reference could help. For instance, VND11 million (US$438) might cover expenses in rural areas but won't be enough to live in cities, yet the tax deductions between those two areas are the same."

Reader lamtan74b added: "People view taxes differently. Those with low earnings wish to earn more money, while higher earners complain about taxes taking a part of their money. Here are two examples I can think of: First, unemployed people will make wild promises for a job. Once they're hired, however, those people quickly disregard their old promises. Second, as people's lives improve, they become used to new comforts and conveniences and often forget past struggles and hardships.

Even those struggling today might find wealth tomorrow. But even then, they will still be dissatisfied with what they have—meanwhile, many people without a job dream of earning enough money for daily life. 2024 has been tough for many people. For them, being able to afford a bus ticket home is already a blessing."