Deduction of 10% Personal Income Tax for Officials and Public Employees

Based on Point i, Clause 1, Article 25 of Circular 111/2013/TT-BTC guiding the Law on Personal Income Tax and Decree 65/2013/ND-CP on other cases subject to PIT deduction:

"Organizations and individuals paying wages, remunerations, and other payments to resident individuals who do not sign labor contracts (as guided at Points c and d, Clause 2, Article 2 of Circular 111) or sign labor contracts for less than three (03) months with a total payment of income from two million (2,000,000) VND per time or more must deduct tax at the rate of 10% on the income before paying to the individual."

Therefore, according to the above guidance, deducting PIT at the rate of 10% on income applies to officials and public employees within the payroll of Departments and Sectors who are mobilized to work in the form of full-time or part-time at Project Management Boards. The Project Management Board is responsible for deducting personal income tax on income from 2 million VND per time or more before paying the income to the individual.

Wages, remunerations, and other payments in the above case include:

- Remuneration received in the form of: sales agency commissions, brokerage commissions; payment for participating in scientific and technical research topics; payment for participating in projects, schemes; royalties as provided by law on royalty policies; payment for participating in teaching activities; payment for performing cultural, artistic, physical training and sports activities; advertising services payment; other service payments, other remunerations.- Payment received from participating in business associations, enterprise boards of directors, enterprise control boards, project management boards, management boards, associations, professional associations, and other organizations.

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