- June 21, 2020
- Posted by: Founda media
- Category: Tax Consulting
According to Article 25 of Circular 111/2013/TT-BTC, calculating personal income tax for probationary contracts, seasonal labor, labor contracts of less than 3 months or no labor contract:
– Enterprises pay wages, remunerations, and other expenses to resident individuals who do not sign a labor contract or sign a labor contract of less than three (03) months with a total income payment. from two million (2,000,000) VND/time or more then Tax must be deducted at the rate of 10% on income before payment to individuals.
– If an individual has only income that is subject to tax deduction at the rate mentioned above, but the individual's estimated total taxable income after deducting family circumstances is not up to the level of having to pay tax, then the individual has income. Enter as a commitment (according to form 02/CK-TNCN according to Circular 92/2015/TT-BTC) sent to the income payment organization so that the income payment organization can use it as a basis for temporarily not deducting personal income tax.
=> Based on the commitment of the income recipient, the organization paying the income does not deduct tax. At the end of the tax year, the income paying organization must still compile a list and the income of individuals who have not yet reached the tax deduction level (on the form issued with the guiding document on tax management) and submit it to the tax authority. tax office. The individual making the commitment must be responsible for his/her commitment. In case of detection of fraud, it will be handled according to the provisions of the Law on Tax Administration.
=> The individual making the commitment must register for tax and have a tax code at the time of commitment.
– Seasonal workers, probationary contracts, no labor contracts or contracts of less than 3 months if they have income according to the following levels:
a) If Total income less than 2 million/time or/month Then when paying salaries, the accountant only needs gKeep photo ID card that man's. (Attached: Labor contract, salary payment documents, time sheet..) -> No personal income tax deduction.
For example: Company A signs a probationary contract with Employee A for a period of 1 month from December 1, 2017 - December 30, 2017 with a salary of 3,000,000
– But in December, the employee only works 15 days: Salary received by employee A = 3,000,000 x 15 / 26 = 1,730,000
=> So in December, employee A's personal income tax will not be deducted (Because income is < 2 million)
b) If you have a total income of 2 million/time or/month Then when paying salaries, the accountant will Tax deduction 10% personal income tax on income before paying to employees.
For example: If you hire seasonal workers to pay salary: 4,000,000/month and allowance of 500,000, then: Personal income tax payable = (4,000,000 + 500,000) X 10% = 450,000 (Accountable by Total income paid to employees, no deductions)
Conditions for making a commitment according to form 02
1. Individuals making commitment 02/CK-TNCN must have a registration number at time of commitment.
2. Only have one income subject to tax deduction at the rate mentioned above.
3. Estimate the total taxable income after family deductions not yet reaching the taxable level.
– If that individual has income from 2 places: Cannot make a commitment and must deduct 10%.
– If individuals sign a contract with the unit for less than 03 months, in the calendar year before joining the unit, these individuals worked elsewhere and earned income at these places, and had a personal tax code. These individuals are not subject to commitment; The company deducts personal income tax at the rate of 10% on total income payments of two million (2,000,000) VND/time or more according to Point i, Clause 1, Article 25 of Circular No. 111/2013/TT-BTC dated December 15. August 2013 of the Ministry of Finance.
(According to Official Dispatch 53094/CT-TTHT dated August 12, 2016 of Hanoi Tax Department)
– In case, during the year, the employee has multiple incomes of 2,000,000 VND/time or more at the same income-paying organization, the estimated total taxable income of the individual after family deductions has not reached the level must pay tax, that individual shall make a commitment according to form 02/CK-TNCN issued together with Circular No. 92/2015/TT-BTC dated June 15, 2015 of the Ministry of Finance. The organization paying temporary income has not deducted the individual's personal income tax for each payment over 2 million VND.
– In case, during the year, the employee has multiple incomes of 2,000,000 VND/week or more at many income-paying organizations but the estimated total taxable income of the individual after family deductions has not reached the level must pay tax, that individual shall make a commitment at each income payment unit according to form 02/CK-TNCN issued with Circular No. 92/20151TT~BTC. The organization paying temporary income has not deducted the individual's personal income tax for each payment over 2 million VND.
(According to Official Dispatch 4389/TCT-TNCN dated November 8, 2018 of the General Department of Taxation)
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