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Personal Income Tax

Personal Income Tax

Taxpayers directly pay taxes to the State through the form of: Enterprises deduct and pay on behalf of employees working at enterprises, have labor contracts and personal tax (calculated on a progressive basis).

The calculation is as follows:

Ex: Monthly income: 15,000,000 VND/ month. There is a 12-month contract and social insurance with a basic salary of 4,000,000 VND

Without deductions, only the deduction of 9,000,000 VND can be deducted:

Income from personal income tax: (15,000,000 – 9,000,000) = 6,000,000 – (4,000,000 x 10.5%) = 5,580,000 (VND)

PIT payable includes:

  • Tier 1: 5,000,000 x 5% = 250,000 VND
  • Level 2: (5,580,000 – 5,000,000) x 10% = 58,000 VND
    Total payable personal income tax: 250,000 + 58,000 = 308,000 VND

Deductions include

  • Deduct yourself (approved by the Tax Agency): VND 9,000,000 / person / month.
  • Dependents (must register with the Tax Agency): 3,600,000 VND / person.
  • Social insurance, health insurance, unemployment insurance (10.5% of employees have to pay).
  • Overtime pay (with cash register, working hours tracking table – Attendance table, lunch money (680,000 VND / person).
    Charitable expenses (with confirmation from the Organization).

Learn more: Instructions for registering an account, submitting tax returns online

(The content is being updated … )

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