DEDUCTIONS WHEN CALCULATING TAXABLE INCOME FROM WAGES, REMUNERATIONS.
Source: finexhr.com
Personal
income tax is: The amount is required to pay a portion of your salary or from
other sources of income to the state budget. At the same time, depending on the
nature of the personal income, income is divided into two categories: regular
income and irregular income.
Income from
salaries and wages is one of the regular income of the individual and to
taxable. However, the state also minds of the standard of living and the needs,
goals essential to make deductions when calculating PIT.
1) Personal deduction:
Personal
deduction is the amount of money deducted from the taxable income before
calculating tax on incomes from wages earned by the resident taxpayer.
Deduction
for the taxpayer: 9 million VND/month, 108 million VND/year.
Deduction
for each dependant: 3.6 million VND/month.
Dependants
include:
- Children,
legitimate adopted children, illegitimate children, stepchildren, in particula:
Children under 18 years of age; Children from 18 years of age and over that are
disabled and incapable of work; Children studying in Vietnam or overseas in
universities, college, vocational schools, including children from 18 years of
age and over in high schools (including the period awaiting university
enrolment result from June to September in 12th grade) that have no income or
the average monthly income in the year from all sources ≤ 1,000,000 VND..
- Other
dependants that the taxpayer has to provide for; The taxpayer’s parents,
parents-in-law, stepparents, legitimate adoptive parents that meet the conditions
in Point dd Clause 1 of Article 9 Circular
111/2013/TT-BTC.
2) Deductions for insurance premiums and
contributions to the voluntary pension fund
Insurance
premiums include premiums for social insurance, health insurance, unemployment
insurance and professional liability insurance, which is compulsory for some
professions.
3) Deductible charitable donations
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