What is the threshold for paying personal income tax in Vietnam?
What is the threshold for paying personal income tax in Vietnam in 2024? - Mr. Kiet (Binh Duong)
What is the threshold for paying personal income tax in Vietnam in 2024?
Article 1 of Resolution 954/2020/UBTVQH14 stipulates the specific levels of family deductions as follows:
Family deductions
The adjusted levels of family deductions stipulated in Clause 1, Article 19 of the Personal Income Tax Law No. 04/2007/QH12, which has been amended and supplemented in some articles by Law No. 26/2012/QH13, are as follows:
1. The deduction for taxpayers is 11 million VND/month (132 million VND/year);
2. The deduction for each dependent is 4.4 million VND/month.
Therefore, taxpayers with no dependents, whose taxable income from wages and salaries exceeds 11 million VND/month (132 million VND/year), must pay personal income tax.
For taxpayers with one dependent, whose taxable income from wages and salaries exceeds 15.4 million VND/month (184.8 million VND/year), must pay personal income tax.
For taxpayers with two dependents, whose taxable income from wages and salaries exceeds 19.8 million VND/month (233.6 million VND/year), must pay personal income tax.
In conclusion, the more dependents a taxpayer has, the higher the salary they must pay tax according to regulations.
What is the threshold for paying personal income tax in Vietnam? - Source: Internet
What is the time to determine the taxable income of personal income tax from wages and salaries in Vietnam?
At Clause 2, Article 8 of Circular 111/2013/TT-BTC, which was amended by Clause 6, Article 25 of Circular 92/2015/TT-BTC, stipulates the taxable income of personal income tax from wages and salaries as follows:
Determining taxable income from wages and salaries
...
2. Taxable income from wages and salaries
a) Taxable income from wages and salaries is determined by the total amount of wages, salaries, remuneration, and other income with the nature of wages and salaries that the taxpayer receives in the tax period according to the guidance of Clause 2, Article 2 of this Circular.
b) Time to determine the taxable income.
The time to determine the taxable income for income from wages and salaries is the time when the organization or individual pays the income to the taxpayer.
In particular, the time to determine the taxable income for the insurance premium for accumulation products according to the guidance of point đ.2, Clause 2, Article 2 of this Circular is the time when the insurance company, the fund management company of the voluntary provident fund pays the insurance.
3. Taxable income for individuals with both business income and wage and salary income is the total taxable income from business and taxable income from wage and salary.
Therefore, the time to determine the taxable income of personal income tax from wages and salaries is the time when the employer pays wages and salaries to the employee.
For the insurance premium for accumulation products that the employee pays to the insurance company or the fund management company of the voluntary provident fund, the time to determine the taxable income is the time when the insurance company or the fund management company of the voluntary provident fund pays the insurance to the employee.
What are regulations on calculating tax on wages and business according to the progressive tax table in Vietnam?
In Appendix 01/PL-TNCN attached to Circular 111/2013/TT-BTC, the calculating tax on wages and business according to the progressive tax table is as follows:
|
Level |
Assessable income/month |
Tax rate |
Tax payable |
|
|
Method 1 |
Method 2 |
|||
|
1 |
Up to 5 million VND |
5% |
0 million VND + 5% of assessable income |
5% of assessable income |
|
2 |
From over 5 million VND to 10 million VND |
10% |
0.25 million VND + 10 % of assessable income in excess of 5 million VND |
10% of assessable income - 0.25 million VND |
|
3 |
From over 10 million VND to 18 million VND |
15% |
0.75 million VND + 15 % of assessable income in excess of 10 million VND |
15% of assessable income - 0.75 million VND |
|
4 |
From over 18 million VND to 32 million VND |
20% |
1.95 million VND + 20 % of assessable income in excess of 18 million VND |
20% of assessable income - 1.65 million VND |
|
5 |
From over 32 million VND to 52 million VND |
25% |
4.75 million VND + 25 % of assessable income in excess of 32 million VND |
25% of assessable income - 3.25 million VND |
|
6 |
From over 52 million VND to 80 million VND |
30% |
9.75 million VND + 30 % of assessable income in excess of 52 million VND |
30% of assessable income - 5.85 million VND |
|
7 |
From over 80 million VND |
35% |
18.15 million VND + 35 % of assessable income in excess of 80 million VND |
35% of assessable income - 9.85 million VND |
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