Official Letter No. 624/DON-QLDN1 dated January 12, 2026, issued by the Dong Nai Provincial Tax Department, regarding the withholding of personal income tax (PIT) on prizes won by employees at year-end company events

In cases where employees of a company receive income from prizes won at year-end or New Year events organized by the company, the portion of the prize value exceeding VND 10 million  per winning occurrence shall be considered taxable income for PIT purposes in accordance with Article 15 of Circular No. 111/2013/TT-BTC. The company is responsible for withholding PIT before paying the prizes to winning employees in accordance with Point g, Clause 1, Article 25 of Circular No. 111/2013/TT-BTC.

Such expenses incurred by the company, if fully satisfying the conditions for deductible expenses as prescribed in Article 9 of Decree No. 320/2025/NĐ-CP dated December 15, 2025, of the Government, shall be treated as deductible expenses for corporate income tax (CIT) purposes.

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