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OPTIMIZE PAYABLE AMOUNT OF PERSONAL INCOME TAX

OPTIMIZE PAYABLE AMOUNT OF PERSONAL INCOME TAX

VIVA BUSINESS CONSULTING là công ty tư vấn doanh nghiệp được tín nhiệm bởi hằng ngàn khách hàng danh tiếng từ năm 2006. VIVA cung cấp nền tảng quản lý toàn diện và nguồn lực thực thi theo cách kết hợp đồng thời của: Luật pháp và thủ tục hành chính trong kinh doanh – Quản lý thuế và kế toán – Quản trị quan hệ lao động – Quản trị tài chính doanh nghiệp – Quản trị và kiểm soát nội bộ. Năng lực của chúng tôi giúp khách hàng lường trước các rủi ro, tối ưu chi phí, kiến tạo lợi thế kinh doanh.

VIVA is a business consulting company, specializes in business compliance procedures according to local business laws and regulations since 2006. VIVA has been continuously trusted by thousands of well-known clients since 2006. We are creating added value for clients by offering one-stop business platform with exclusive and tailored-made services related to market entry and mandatory business compliances. We keep our client’s good standing in lawful and optimal manners whenever they are working and doing business in Vietnam.

Personal income tax: Optimize payable amount by laws | VIVABCS

Personal income tax is a tax calculated on an individual’s income sources earned from business activities and other sources such as salaries and wages paid by employers, from capital investments, capital transfer, real estate transfer, prize-winning, copyright, and inheritance gifts. Regardless of Vietnamese or foreigners, depending on residence status, and income level, an individual may have to pay from 5% to 35% of the income earned… Among them, income from salary and wages is the most common and also has the most detailed regulations.

Amounts deducted from the taxable income of the person before calculating taxable income from wages, remunerations, and business.

PERSONAL DEDUCTIONS

1) Personal deduction

Personal deduction is the amount of money deducted from the taxable income before calculating tax on incomes from business, or wages earned by the resident taxpayer. If the resident earns income from both business and wages, one deduction from the total income from business and wages shall be made.

2) Levels of personal deductions

  • Deduction for the taxpayer: 9 million VND/month, 108 million VND/year.
  • Deduction for each dependents: 3.6 million VND/month.

3) Calculating deduction

  • Personal deduction for the taxpayer.
  • Deduction for dependents.

4) Dependents include

  • Children, legitimate adopted children, illegitimate children, stepchildren, in particular
  • The taxpayer’s spouse that meet the conditions.
  • The taxpayer’s parents, parents-in-law, stepparents, legitimate adoptive parents that meet the conditions.
  • Other dependents that the taxpayer has to provide for, who meet the conditions, including.

DEDUCTIONS FOR INSURANCE PREMIUMS AND CONTRIBUTIONS TO THE VOLUNTARY PENSION FUND

a) Insurance premiums

Insurance premiums include premiums for social insurance, health insurance, unemployment insurance and professional liability insurance, which is compulsory for some professions.

b) Contributions

Contributions to the voluntary pension fund. The contributions to the voluntary pension fund are deducted from the taxable income, but the deduction shall not exceed 01 million VND/month (12 million VND/year) when the worker participates in voluntary pension plans guided by the Ministry of Finance, even the worker participates in multiple pension funds. The basis for determining deductible income is photocopies of payment bills given by the voluntary pension fund.

c) Where the foreigner being a resident

Where the foreigner being a resident in Vietnam, the Vietnamese person being a resident but works overseas earns incomes from business or wages overseas and pay compulsory insurance premiums required by the country where the person holds the nationality or works that are similar to that in Vietnam such as social insurance, health insurance, unemployment insurance, professional liability insurance, and other compulsory insurance, such insurance premiums may be deducted from the taxable income from business and wages when calculating personal income tax. Foreigners and Vietnamese people who pay the aforesaid insurance premiums overseas shall have them provisionally deducted from the income in the year (if supporting documents are provided). Deductions shall be officially made when they settle tax. If no supporting documents are provided for immediate deduction, a lump-sum deduction shall be made when settling tax.

d) Insurance premiums and contributions

Insurance premiums and contributions to the voluntary pension fund in the year shall be deducted from the taxable income earned in that year.

e) The documents proving the aforesaid

The documents proving the aforesaid deductible insurance premiums are photocopies of payment receipts issued by the insurers or written certification made by the income payer that the insurance premiums are withheld or paid (if they are paid by the income payer on behalf of the worker).

DEDUCTIBLE CHARITABLE DONATIONS

The charitable donations

The charitable donations shall be deducted from the taxable income from business and wages before calculating the tax incurred by a resident taxpayer.

The charitable donations made

The charitable donations made in a tax year shall be deducted from the taxable income earned in that tax year. The donations that are not completely deducted shall be deducted from the taxable income earned in the next tax year. The maximum deduction shall not exceed the assessable income from wages and business earned in the tax year in which the charitable donations are made.

ABOUT VIVA BUSINESS CONSULTING

VIVA is the local expertise for local business compliance procedures, has been trusted by thousands of foreign investors, multinational companies from Europe, Japan, Singapore, India, Korea, USA… for the required business compliance procedures by local laws and regulations since 2006.

Thanks for consistent of practice expertise in Business laws - Employment relations – Tax and accounting – Corporate finance – Corporate services,  VIVA has been successfully providing service for thousands of leading companies in such industries: Garment, energy, pharma, advertising, agricultural…

VIVA keeps its signature by offering one-stop business platform with regard to market entry and the mandatory business compliances. We ensure for our client’s good standing, in lawful and optimal manners whenever they are working and doing business in Vietnam.

 

VIVA not only manage business required procedures by laws but firstly places client’s compliance and good standing, in the optimal methods when offering any solution, and integrated with our intensive resources that allow us to prevent most of the risks in advance, create more benefits, advantages and business inspiration for entrepreneurs.

The insights and consistent backgrounds in Business Laws – Accounting and Corporate Finance – Tax Management – Labor Relations and Payroll – Serectarial and consistent with our exclusive standard operation processes, consisting of consultation – implementation – pratice operation help us fully protect client interests as one-stop solution.

YOU WILL RECEIVE

“If you ask any successful businessperson, they will always have had a great mentor at some point along the road.”

 

 

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