Personal income tax (PIT) is known as a tool to measure and balance society between individuals and state revenue, so the deduction of PIT at source was born from there. Join MISA MeInvoice to learn about the current Regulations on deduction of PIT at source in the content of the article below.
personal income tax deduction at source
Note: Before learning about deducting personal income tax at source, you can learn about the information you need to know about personal income tax in the article below.
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Table of Contents Hide
1. What is personal income tax deduction at source?
2. Purpose of deducting personal income tax at source
3. Cases of tax deduction at source
4. Cases of personal income tax deduction
5. Conclusion
1. What is personal income tax deduction at source?
What is personal income tax deduction at source?
Withholding personal income tax at source should the prospect call Place an order is stipulated in Article 28 of Decree 65/2013/ND-CP with the content that enterprises, organizations or individuals paying income shall deduct the amount of tax payable bulk data before paying income to employees. Withholding tax at source is a form of income tax that will be calculated by deducting from the money paid to employees.
Non-resident personal income includes cases where employees are not present in Vietnam, income from salaries, wages, remuneration including cases of receiving remuneration in brokerage.
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Learn more:
How to calculate personal income tax from capital investment and related regulations
Instructions for submitting the latest personal income tax deduction report
2. Purpose of deducting personal income tax at source
The purpose of tax deduction at source is to facilitate tax collection and reduce tax evasion by employees who are required to pay personal income tax.employees who are required to pay personal income tax.
If an individual operates domestically and has multiple sources of income, personal income tax
deduction will be carried out according to the following procedure
Monthly personal income tax will be deducted directly at the place of income payment.
Must declare and settle taxes at the last place of work at the end of each year.
Applying personal income tax deduction at source is one of the effective ways to make tax collection easier, while controlling and managing tax evasion by employees and organizations. If employees do not have the income level applicable to pay personal income tax but are still subject to personal income tax deduction, they will be refunded .