That has been clearly stipulated by the state in the law on tax administration for economic organizations as well as members of society. And one of the taxes that plays a leading role in promoting the state budget that we want to mention today is personal income tax. So what is personal income tax ? Who is subject to personal income tax? How is personal income tax calculated? » learn: how to look up personal tax code what is personal income tax? Personal income tax is the amount of money that individuals subject to taxation must deduct from their salary, or from other sources of income, to contribute to the state budget (after deductions).
Thus personal income tax can be
understood as a direct tax, and is only levied on individuals with high incomes. Regardless of whether you are vietnamese or a foreigner, as long as your income arises in vietnam, you must pay personal income tax according to state regulations. Why pay personal income tax? For the economy, tax is considered the main source of revenue for the state budget. When the economy develops, per capita income increases, leading to a rapid increase in tax revenue from personal income tax.
Thanks to that the state has
a budget to maintain and operate the management apparatus and solve social security issues. In addition, the state’s reduction of income of high-income individuals also helps prevent illegal sources of income such as embezzlement, bribery, tax evasion, trading in prohibited goods, fraud and appropriation of property, etc. For society, although personal income tax is not the factor that brings the largest source of revenue to the state budget, it plays an important role in implementing social equity policies. Personal income tax is a progressive tax, meaning that people with higher incomes have to pay a larger share.
Tax rates range from as little
as 5% to as much as 35%. » learn about: corporate income tax how to calculate personal income tax personal income tax is calculated monthly, but will be settled annually. There are 3 ways to calculate personal income tax corresponding to 3 different subjects: method 1: calculate tax cash app database according to the progressive tax table for resident individuals who have signed a labor contract with a term of 03 months or more. According to article 2 of the law on personal income tax.
To calculate personal income tax
you need to follow these 5 steps: – step 1: calculate total income from salaries and wages receive. Step 2: calculate the total income exempted from tax by law income listed in the tax-exempt category includes. Overtime pay night work salary lunch allowance. Mid-day meal allowance phone making science-based decisions about the climate emergency: 10 new ideas in climate science allowance gasoline and uniform allowance business trip allowance income of crew members. Who are vietnamese citizens but work for foreign shipping companies or work for vietnamese shipping companies that provide international transportation.
Calculate taxable income
total income – tax-exempt items. Step 4: calculate deductions deductions include. Family deduction of 11 million vnd/month for individual taxpayers and 4.4 million. Vnd/month for dependents (wife/husband, biological children, adopted children, father, mother. Insurance premiums malaysia data charity money, education incentives, retirement contributions. Generally, these are voluntary contributions. Step 5: calculate taxable income = taxable income (in step 3) – deductions – step 6: calculate personal income tax payable = taxable income (in step 5) x tax rate to calculate the tax rate you must pay, you need to rely on the following progressive tax table: (unit: million) level taxable income (t) tax rate how to calculate personal income tax payable.