According to the regulations at Circular No. 111/2013/TT-BTC , when giving gifts in kind to employees, depending on specific case, the Company either withholds PIT or not
If the gifts are paid as salary, wage according to clause 2 Article 2 of Circular No. 111/2013/TT-BTC , it is required to withhold PIT on the gifts’ value in terms of salary.
If the gifts are neither paid as salary, wage nor belong to cases of securities, capital contributions, real estate, assets subject to registration of ownership, etc. according to the regulations at clause 10 Article 2 of Circular No. 111/2013/TT-BTC , they are exempt from PIT.
If the gifts are received thanks to winning prizes from games according to clause 6 Article 2 of Circular No. 111/2013/TT-BTC , PIT shall be withheld according to Article 15 (10% on the gifts’ value exceeding 10 million VND).