Who does not have to pay personal income tax in 2024?

PIT payers include resident and non-resident individuals, but only resident individuals are eligible for the family deduction.

For non-resident individuals, only income from wages and wages is required to pay PIT at a tax rate of 20% of taxable income. For resident individuals When calculating PIT, resident individuals are divided into 02 cases:

- Resident individuals sign labor contracts for 03 months or more;

- Individuals who do not sign labor contracts/labor contracts for less than 03 months.

Case 1: Resident individuals sign labor contracts for 03 months or more

According to Clause 1 Article 7, Clauses 1, 2, 3 Article 9 of Circular 111/2013/TT-BTC, individuals without dependents are not required to pay income tax when the total income from salary and wages ≤ VND 11 million/month.

This income is deducted from the following:

- Insurance contributions, voluntary pension funds, charitable, humanitarian, and educational contributions.

- The income is exempt from personal income tax.

- Items not included in personal income tax such as allowances, allowances, lunch,...

Specifically, resident individuals who sign a labor contract for 03 months or more that do not meet the following taxable income threshold are not required to pay personal income tax:

Case 2: The individual does not sign a labor contract/sign a labor contract for less than 03 months

Resident individuals who sign labor contracts for less than 03 months/do not sign labor contracts are not required to pay personal income tax at the rate of 10% of their pre-payment income if any:

- Total income payment is less than 02 million VND/time

- The total income payment is from 02 million VND/time or more but is the only income from salary and wages and the estimate of the total taxable income after deducting family circumstances is not up to the taxable level (commit according to form 08/CK-PIT).

Specifically, Point i, Clause 1, Article 25 of Circular 111/2013/TT-BTC stipulates, that resident individuals who sign labor contracts for less than 03 months/do not sign labor contracts but have a total income payment of VND 02 million/time or more, must withhold tax at the rate of 10% on income before paying.

That is, individuals who do not sign a labor contract / sign a labor contract for less than 03 months but have income from salary and gong each time receive from VND 02 million or more must pay tax at the rate of 10%, except for the case of being eligible to make a commitment according to Form 08/CK-TNCN.

Case 3: Individuals are exempt from personal income tax in 2024

Point b, Clause 2, Article 79 of the Law on Tax Administration No. 38/2019/QH14 stipulates:

2. Tax exemption in the following cases:

[...]

b) Individuals whose arising tax amount must be paid annually after personal income tax finalization from salary and wages of VND 50,000 or less.

[...]

In addition, Point d, Clause 1, Article 51 of Circular 80/2021/TT-BTC stipulates the case in which taxpayers are exempt from PIT as follows:

1. Cases in which taxpayers themselves determine the amount of tax exemption or reduction:

[...]

d) Personal income tax: individuals whose income from wages and wages incurs the tax payable after settlement of each year of VND 50,000 or less.

[...]

Thus, individuals are exempt from PIT when income from wages and wages incurs the tax payable after settlement of each year of VND 50,000 or less.

Conclusion: For income from wages and wages, employees are not required to pay personal income tax if the income has not reached the prescribed threshold or the amount of tax payable after finalization ≤ VND 50,000.

Personal income tax finalization is an individual's determination of full tax liability for one year, an individual's tax period with the state budget. "PIT finalization service" of the TASCO Tax Agent will advise and support customers to prepare necessary tax finalization documents according to regulations. Tasco's PIT finalization service is currently the most prestigious, quality, efficient, and economical service in Ho Chi Minh City.

Customers can refer to service details

Or you can immediately call the hotline at 0975480868 or text Zalo 0705955325 for Tasco to consult for free!!

Above is the article Those who do not have to pay personal income tax in 2024 hope the article will bring you useful information. 

TASCO Tax Agency is proud to be an organization founded and led by CEOs with more than 20 years of experience in the field of Accounting - Tax - Finance in multinational companies with a team of highly qualified specialists, always updating knowledge regularly and working with the motto "DEDICATION - RESPONSIBILITY - PROFESSIONALISM" Ensure to provide entrepreneurs with the most reputable and professional business establishment services, tax accounting services, tax consulting. Besides, TASCO always puts the interests of entrepreneurs first. More than anyone, TASCO understands that customers when they first start their business have to invest a lot of costs. Therefore, TASCO always supports customers to minimize costs to operate businesses sustainably.

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