Royal Vietnam would like to summarize important notes for the. 2024 Personal Income Tax Finalization Period:

– Individual authorizing tax finalization:

    Deduct 132 million VND for yourself even though less than 12 months of the year.

    Deduction of dependents according to the time the care obligation arises.

– Individuals who do not authorize tax finalization:

    Just add up all the indicators related to income on the salary slip.

– Personal income tax calculation:

    Determine tax residents and total income from salaries and wages during the year.

– Deductions when calculating tax:

    Family deduction of 132 million VND for taxpayers and 52.8 million VND for each dependent.

    Social insurance, health insurance, unemployment and charity contributions.

– Exchange rate used when income is in foreign currency:

    Convert income in foreign currency according to the actual exchange rate or bank exchange rate.

– Non-taxable income:

    Roaming allowance, per diem, telephone expenses, and transportation for workers.

– Taxable income conversion formula:

    Taxable income = Actual income + Payments on behalf – Deductions.

– Tax finalization:

    Finalize tax when there is additional tax paid or when you want a tax refund.

– Common misunderstanding:

    Confusion between total income, taxable income and taxable income.

– Correct understanding:

    Total income = Taxable income + Tax-free income.

    Taxable income = Taxable income – Deductions.