Is it mandatory to withhold 10% PIT for probationary employees?

According to the provisions of Clause 1i, Article 25 of Circular 111/2013/TT-BTC:

Tax deduction in certain cases

Organizations and individuals that pay wages, remunerations, or other compensations to resident individuals without a labor contract (as guided in Points c, d, Clause 2, Article 2 of this Circular) or with a labor contract of less than three (03) months with a total payment of two million (2,000,000) VND or more per payment must deduct tax at a rate of 10% on income before paying the individual.

In cases where an individual has only one source of income subject to the above tax deduction rate but estimates the total taxable income, after deducting family circumstances, is not sufficient to reach the taxable level, the individual can make a commitment (according to the form issued with the guidance document on tax management) and send it to the income-paying organization so that the organization can temporarily not deduct personal income tax.

Based on the commitment of the income recipient, the income-paying organization will not deduct the tax. At the end of the tax year, the income-paying organization must still compile a list and income details of individuals not subjected to tax deduction (into the form issued with the guidance document on tax management) and submit it to the tax authority. Individuals making the commitment will be responsible for their commitment, and if any fraud is detected, they will be handled according to the provisions of the Law on Tax Management.

Individuals making the commitment as guided at this point must have taxpayer registration and a tax code at the time of commitment.

Thus, for probationary employees, the company deducts tax at a rate of 10%, which is conformable.

In case you are on probation and working part-time with a salary of 4.5 million VND, if this is your sole income, to avoid tax deduction, you must make a commitment using form 02/CK-TNCN.

Sincerely!