Calculating Personal Income Tax Based on Gross Salary

Gross salary is the total income that an employee receives, including salary, allowances, bonuses, commissions... Employees receiving monthly gross salary must deduct an amount as prescribed to pay social insurance.

Resolution 954/2020/UBTVQH14 stipulates adjustments to the family deduction levels of personal income tax. Accordingly:

Adjustments to the family deduction levels specified in Clause 1, Article 19 of the Personal Income Tax Law 2007 (amended in 2012) are as follows:

- The deduction level for the taxpayer is 11 million VND/month (132 million VND/year), the current regulation is 9 million VND/month (108 million VND/year);

- The deduction level for dependents is 4.4 million VND/month, the current regulation is 3.6 million VND/month.

Thus, after deducting social insurance and family deductions, the taxable income per month is 11,469,000 VND. Applying the progressive tax rate, the employee in this case will have to pay personal income tax of 970,000 VND (Article 22 of the Personal Income Tax Law 2007).

Sincerely!