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The latest method of calculating personal income tax according to the 2017 regulations and how to calculate tax and exempted income based on the regulations of personal income tax No. 26/2012/QH13, Circular 111/2013/TT-BTC and Circular 92/TT-BTC.
1. How to calculate PIT for residents staying for more than 3 months:
Calculation of personal income tax follows the formula:
+ PIT to be paid = Taxable income x Tax rate
Where:
+ Taxable income calculated according to CT:
Taxable income = Taxable income subject to tax - Deductions
+ Taxable income calculated according to CT:
Taxable income subject to tax = Total income - Exempted amounts.
A. Total income
Employers providing support for rent and utilities will be included in taxable income, not exceeding 15% of the total taxable income generated.
Overtime and extra hours pay:
According to regulations, night shift, overtime, and extra hours pay will be higher than regular daytime pay. The difference in overtime pay is exempt from tax.
Support for self and family celebrations:
+ Mandatory insurance contributions such as social insurance, health insurance, and unemployment insurance.
+ Contributions to charity, education promotion, and more.
2. For calculating PIT for residents residing less than 3 months
+ In cases where individuals do not sign labor contracts or sign contracts with a duration of less than 3 months, if the income is determined to be 2 million dong or more, a 10% tax deduction applies.
+ In cases where individuals only have income falling under the tax deduction criteria mentioned above but the estimated total taxable income of the individual after deducting family circumstances does not reach the taxable income threshold, they will proceed to make commitments to send temporary income to the organization without tax deduction. The organization will not withhold tax in such cases, and individuals making commitments are responsible for their commitments.
3. Tax calculation for non-resident individuals
Personal income tax to be paid = Taxable income x 20%
To check their tax code, each individual can look up their tax code online on the website of the Vietnam General Department of Taxation. This online tax code lookup helps us save time and improve accuracy.
Currently, to save time in tax filing for businesses or individuals, the HTKK software released by the Tax Department provides full functionality needed for individuals or businesses to list and declare their taxes. Simply download and install HTKK and enter the tax code that has been verified above.
Here is the basic information on how to calculate personal income tax specifically according to the legal regulations. It is hoped that this has helped readers understand more about how to calculate personal income tax so that during the implementation process, readers will have the most accurate calculation according to current legal regulations.
