What is the schedule for pension payments in March 2025 in Ho Chi Minh City? Is pension subject to PIT in Vietnam?

What is the schedule for pension payments in March 2025 in Ho Chi Minh City?

Pursuant to section 1 of Official Dispatch 8126/BHXH-KHTC in 2024 concerning the notification of adjustments to the pension and social insurance allowance payment schedule from December 2024 onwards, the pension payment schedule in Ho Chi Minh City from December 2024 onwards is as follows:

- Payment through ATM accounts: Ho Chi Minh City Social Insurance directly transfers money to beneficiaries' accounts from the 1st of each month.

- Cash payments: The Ho Chi Minh City Post Office organizes payments at designated locations from the 4th to the 10th of each month, continuing payments at the post offices of the Central/Post Office from the 11th to the end of the 25th of each month.

Additionally, following the directive of the Government of Vietnam on non-cash payments, including monthly pension and social insurance policies, as well as enhancing the application of information technology and digital transformation in implementing social insurance policies, on February 21, 2025, Ho Chi Minh City Social Insurance issued a notice to adjust the cash payment schedule for pensions and social insurance allowances starting March 2025 as follows:

- Organize payments at designated post office locations: From the 7th to the 10th of each month;

- Organize payments at Central/County Post Offices: From the 11th to the end of the 25th of each month.

Note: If the payment date coincides with a Saturday, Sunday, or public holiday, the payment date will be the next working day.

The Ho Chi Minh City Social Insurance requests that pension or social insurance allowance beneficiaries open an account to receive their pension and social insurance allowance from the 1st of each month. For the March 2025 pension receipt cycle, recipients can contact the payment officer/bank officer at the payment point for guidance on opening an account on-site (please bring identification card/citizen ID).

Thus, the pension payment schedule for March 2025 in Ho Chi Minh City is specifically as follows:

- Payment through ATM accounts: Ho Chi Minh City Social Insurance directly transfers the money to beneficiaries' accounts from the 1st of each month.

- Organize payments at designated post office locations: From the 7th to the 10th of each month;

- Organize payments at Central/County Post Offices: From the 11th to the end of the 25th of each month.

If the payment date coincides with a Saturday, Sunday, or public holiday, the payment date will be the next working day.

What is the schedule for pension payments in March 2025 in Ho Chi Minh City? Is pension subject to PIT in Vietnam? (Image from the Internet)

Is pension subject to PIT in Vietnam?

Based on clause 10, Article 4 of the Law on Personal Income Tax 2007 (amended by clause 3, Article 2 of the Amended Tax Law 2014; amended by clause 2, Article 1 of the Amended Personal Income Tax Law 2012), which stipulates tax-exempt income as follows:

Tax-exempt Income

...

9. Night shift, overtime pay higher than that of daytime working as regulated by law.

10. Pension paid by Social Insurance Fund; monthly pension paid by voluntary pension fund.

11. Income from scholarships, including:

a) Scholarships received from the state budget;

b) Scholarships received from domestic and foreign organizations that have educational support programs.

...

Thus, according to the above regulation, pensions are exempt from personal income tax, meaning that individuals are not required to pay personal income tax on the received pension.

Who is required to pay personal income tax in Vietnam under current regulations?

Based on Article 2 of the Law on Personal Income Tax 2007, it is stipulated as follows:

Taxpayers

1. Taxpayers of personal income tax are resident individuals having taxable income as defined in Article 3 of this Law, derived from both within and outside the territory of Vietnam and non-resident individuals having taxable income as defined in Article 3 of this Law, derived from within the territory of Vietnam.

2. A resident individual is someone who meets one of the following conditions:

a) Stays in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first date of presence in Vietnam;

b) Has a regular residence in Vietnam, including a registered permanent residence or a rented house in Vietnam under a term lease.

3. A non-resident individual is someone who does not meet the conditions specified in clause 2 of this Article.

Thus, according to the aforementioned regulations, taxpayers of personal income tax include resident individuals with taxable income as prescribed in Article 3 of the Law on Personal Income Tax 2007 from both within and outside the territory of Vietnam and non-resident individuals with taxable income within the territory of Vietnam. Specifically:

- A resident individual is someone who meets one of the following conditions:

+ Stays in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first date of presence in Vietnam;

+ Has a regular residence in Vietnam, including a registered permanent residence or a rented house in Vietnam under a term lease.

- A non-resident individual is someone who does not meet the following conditions:

+ Stays in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first date of presence in Vietnam;

+ Has a regular residence in Vietnam, including a registered permanent residence or a rented house in Vietnam under a term lease.