What is the 2025 partially progressive tariff for personal income tax in Vietnam? How lịch trực tiếp bóng đá hôm nay calculate PIT using the abridged method?

What is the 2025 partially progressive tariff forpersonal income taxin Vietnam?

The partially progressive tariff for personal income tax applies lịch trực tiếp bóng đá hôm nay taxable income derived from wages and salaries, excluding contributions lịch trực tiếp bóng đá hôm nay social insurance, health insurance, unemployment insurance, occupational liability insurance for certain mandatory insurance occupations, voluntary pension funds, and deductions.

Pursuant lịch trực tiếp bóng đá hôm nay Clause 2, Article 23 of theLaw on Personal Income Tax 2007, the partially progressive tariff for PIT for 2025 is as follows:

What is the 2025 partially progressive tariff for personal income tax in Vietnam? How lịch trực tiếp bóng đá hôm nay calculate PIT using the abridged method?

How lịch trực tiếp bóng đá hôm nay calculatePIT using the abridged method in Vietnam?

Pursuant lịch trực tiếp bóng đá hôm nay Clause 3, Article 7 ofCircular 111/2013/TT-BTC, taxable PIT income from wages and salaries is calculated as follows:

PIT Payable = Taxable Income x Tax Rate

Where:

- Taxable Income (TNTT) = Taxable Income - Deductions.

- The tax rate on wages and salaries is calculated progressively according lịch trực tiếp bóng đá hôm nay Article 22 of theLaw on Personal Income Tax 2007. lịch trực tiếp bóng đá hôm nay be specific:

Additionally, Appendix 01/PL-TNCN issued withCircular 111/2013/TT-BTCprovides the abridged method for calculating PIT on salaries and wages as follows:

Taxpayers need lịch trực tiếp bóng đá hôm nay determine their monthly taxable income and corresponding tax bracket, then apply the abridged tax calculation formula lịch trực tiếp bóng đá hôm nay determine the PIT payable.

Example: Ms. A has an income from wages and salaries of 20 million VND per month and contributes lịch trực tiếp bóng đá hôm nay insurance at the following rates: 8% social insurance, 1.5% health insurance on wages, 1% unemployment insurance. Ms. A has one dependent child under 18; during the month, Ms. A does not contribute lịch trực tiếp bóng đá hôm nay charity, humanitarian, or educational support.

Calculation of tax payable using the abridged method:

- Ms. A’s taxable income is 20 million VND.

- Ms. A is entitled lịch trực tiếp bóng đá hôm nay the following deductions:

+ Personal deduction: 11 million VND

+ Dependent deduction for one dependent (1 child): 4.4 million VND

+ Social insurance, health insurance, unemployment insurance:

(Maximum salary cap for insurance contributions is no more than 20 times the statutory pay rate, i.e., no more than 2,340,000 x 20 = 46,800,000 VND)

20 million VND x (8% + 1.5% + 1%) = 4.2 million VND

Total deductions:

11 million VND + 4.4 million VND + 4.2 million VND = 2.1 million VND

- Ms. A’s taxable income is:

20 million VND - 11 million VND - 4.4 million VND - 2.1 million VND = 2.5 million VND

=The taxable income for the month is 2.5 million VND, which falls into tax bracket 1. Thus, the PIT Ms. A has lịch trực tiếp bóng đá hôm nay pay is:

2.5 million VND x 5% = 312,000 VND

Vietnam: What incomes do incomes from salaries and wages include?

Pursuant lịch trực tiếp bóng đá hôm nay Clause 2, Article 3 of theLaw on Personal Income Tax 2007as amended by Clause 1, Article 1 of theAmended Law on Personal Income Tax 2012, income from wages and salaries includes the following types:

- Wages and salaries and other forms of remuneration;

- Allowances and subsidies, except for allowances and subsidies provided under the law on incentives for people with meritorious service; national defense, security allowances; hazardous and dangerous job allowances; recruitment allowances, regional allowances prescribed by law; sudden hardship subsidies, work accident and occupational disease allowances, one-time childbirth or adoption subsidies, allowances for decline in working capacity, one-time retirement allowances, monthly survivor benefits and other social insurance subsidies; severance and unemployment benefits prescribed by the Labor Code; social protection-related subsidies and other non-salary and non-wage allowances and subsidies prescribed by the Government of Vietnam.