From July 1, 2024, officials, public servants, and employees with a total income from salary and wages exceeding 11 million VND per month (132 million VND per year), after deducting mandatory insurance contributions as per regulations and without dependents, will be required to pay personal income tax.
=> See more: What types of allowances are there in the new salary regime in July 1, 2024
According to the 2007 Personal Income Tax Law, the family circumstance-based deductions are specified as follows:
1.Family circumstance-based deductions are amounts deducted from taxable income before tax calculation for income from business, wages, and salaries of resident taxpayers. The family circumstance-based deductions include the following two parts:
a) The deduction for the taxpayer is 4 million VND/month (48 million VND/year);
b) The deduction for each dependent is 1.6 million VND/month.
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2.The determination of family circumstance-based deductions for dependents follow the principle that each dependent can only be claimed for deduction once by a single taxpayer.
3.A dependent is a person whom the taxpayer is responsible for supporting, including:
a) Minor children; children who are disabled and unable to work;
b) Individuals who have no income or have income not exceeding the prescribed level, including adult children attending university, college, professional secondary school, or vocational school; spouses who are unable to work; parents who are beyond working age or unable to work; and other dependents without support, whom the taxpayer has to directly care for.
The government regulates the income level and declaration required to determine who qualifies as a dependent for family circumstance-based deductions.
Note: If officials, public employees, and civil servants have a total income from salaries and wages over 11 million VND/month (132 million VND/year) and have dependents, the taxable income threshold changes as follows:
With one dependent: Salary must exceed 15.4 million VND/month to be liable for tax.
With two dependents: Salary must exceed 19.8 million VND/month to be liable for tax.
The above-mentioned incomes have already been deducted for compulsory social insurance contributions, voluntary retirement fund contributions, and charitable contributions according to regulations.
Therefore, starting from July 1, 2024, officials, public employees, and civil servants with an income exceeding 11 million VND/month are required to pay personal income tax unless they have dependents. The taxable income threshold increases to 15.4 million VND/month with one dependent and 19.8 million VND/month with two dependents.
See more: Does personal income tax apply to people in the pre-maternity period?
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