- 4 December, 2019
- Posted by: admin
- Category: Business accounting management handbook
Personal income tax (PIT) is the amount of money that an individual who earns a certain amount of tax must deduct to pay part of his salary or other revenue into the state budget after calculating the amounts. be deducted.
Personal income tax is applied to resident individuals, taxable income is income generated inside and outside the territory of Vietnam, irrespective of where the income is paid.
In addition, for non-resident individuals, taxable income is the income generated in Vietnam, regardless of where the income is paid or received.
Personal income tax rates for income from salaries and wages of resident individuals are applied according to the partially progressive tax table as prescribed in Article 22 of the Law on Personal Income Tax, specifically as follows:
|tax bracket||Assessable income / year (million VND)||Assessable income / month (million VND)||Tax (%)|
|Go to 60||Go to 5||5|
|On 60 to 120||On to 10||10|
|On 120 to 216||On 10 to 18||15|
|On 216 to 384||On 18 to 32||20|
|On 384 to 624||On 32 to 52||25|
|On 624 to 960||On 2 to 80||30|
|On 960||On 80||35|
Taxable income This tax is Income of resident individual have taxable income from salaries and wages after deducting family allowances, compulsory insurance premiums, charitable, humanitarian and study promotion contributions.
TNTT = TNCT - Reduction of family circumstances - Compulsory insurance - Contributions of charity, humanitarian, study encouragement
1. Reduction for family circumstances
- For taxpayers is 9 million VND / month, 108 million VND / year.
- Reduction based on family circumstances for taxpayers:
- Taxpayers have many sources of income from salaries, wages and business, then at one time (calculated monthly) taxpayers choose to calculate family allowances for themselves at one place.
- For foreigners who are individuals residing in Vietnam are entitled to deduction of family circumstances for themselves from the month of import-export or from the month to Vietnam in case the individual is first present in Vietnam to the end of the contract. labor and leave Vietnam in the tax year (calculated monthly).
- In case the individual's tax year has not been deducted for himself or the deduction for himself has not been enough for month's export tax, he / she will be fully deducted for monthly export tax when making tax finalization as prescribed.
2. Reduction based on family circumstances for dependents
For each dependent là 3,6 million VND / month.
- Reduction based on family circumstances for dependents:
- Taxpayers are allowed to calculate family circumstance-based reduction for dependents if taxpayers have registered for tax and been granted tax identification numbers.
- When the taxpayer registers dependents for dependents, he / she will be granted a tax code for the dependents by the tax authority and temporarily calculated the family allowances within the year from the date of registration. Dependents who have been registered for family circumstance-based reduction before the effective date of this Circular may continue to enjoy family circumstance-based reductions until their tax identification numbers are granted.
- If the taxpayer does not calculate deductions for dependents in the tax year, the taxpayer may claim deduction from the month when the dependent obligation arises when the taxpayer makes a tax statement and registers it family allowances for dependents. Particularly for other dependents under the guidance in Item d.4, point d, Clause 1, this deadline for family circumstance-based reduction registration is the latest on the first day of import-export date of the tax calculation year, beyond the above-mentioned time limit, The family circumstance-based deduction is not allowed for that tax year.
- Each dependent is entitled to a deduction only once for a taxpayer in the tax year. In case many taxpayers who have a dependent depend on them, the taxpayer may agree to register a family circumstance-based reduction for a taxpayer.
3. Deduction for insurance premiums and voluntary retirement funds
- Insurance premiums include: social insurance, health insurance, unemployment insurance, professional liability insurance for a number of industries subject to compulsory insurance.
- Contributions to the voluntary pension fund, purchase of voluntary retirement insurance
The level of contribution to the voluntary pension fund, purchase of voluntary retirement insurance is deducted from the taxable income according to the actual arising but not exceeding one million (01) million / month for employees participating in the voluntary retirement products under the guidance of the Ministry of Finance, including both the amount paid by the employer to the employee and the amount paid by the employee (if any), including the case of participation. lots of funds. Bases for determining deductible income are copies of voucher of payment (or payment) granted by voluntary pension funds, insurance enterprises.
4. Deduction for charitable, humanitarian and study promotion contributions
Charity, humanitarian and study promotion contributions arising in a year shall be deducted from the taxable income of that tax year, if the deduction is not completely deducted from the taxable income of the subsequent tax year . The maximum deduction level shall not exceed the taxable income from salaries, wages and business income of the tax year in which a humanitarian or study charity donation arises.