Standard Personal Income Tax Calculator 2024

Guide to Calculating Personal Income Tax in Vietnam 2024

Personal income tax is a type of tax that every employee needs to understand. Having a firm grasp of its regulations and calculation methods allows you to proactively plan your finances and avoid unnecessary complications. In this article, HR1Tech provides a detailed and easy-to-understand guide on calculating personal income tax in Vietnam for 2024.

What is Personal Income Tax?

Personal income tax (PIT) is a sum of money that individuals earning income are obligated to deduct from their salaries and other income sources (if any) to contribute to the state budget after eligible deductions. The purpose of personal income tax is to increase state budget revenue, ensure social welfare for citizens, and contribute to narrowing the gap between different income groups.

Who is Subject to Personal Income Tax?

Two groups are obligated to fulfill personal income tax obligations: Residents and non-residents in Vietnam with taxable income. Specifically:

- Residents: Taxable income includes all income generated both within and outside the territory of Vietnam, regardless of where the income is paid.

- Non-residents: Taxable income includes all income generated within the territory of Vietnam, regardless of where the income is paid or received.

Calculating Personal Income Tax for Each Group

First, you can look up your tax identification number on the General Department of Taxation's website at: https://tracuunnt.gdt.gov.vn/tcnnt/mstcn.jsp.

Depending on your residency status and income level, personal income tax calculation will differ:

- Residents with labor contracts of 3 months or more: The higher the income, the higher the tax rate.

- Residents with labor contracts under 3 months or without labor contracts: A flat rate of 10% is applied to the total income.

- Non-resident foreigners in Vietnam: A flat rate of 20% is applied to the total income.