Sending questions to the Government Portal, Ms. Nguyen Hoang Linh said that she is an elementary school accountant. Regarding the implementation of personal income tax (PIT) and value-added tax (VAT) policies in the field of education, she has some difficulties that need guidance:
First, the hourly increase teaching fee of teachers is finalized each semester. Because a semester lasts about 4-5 months, at the time of finalization (usually in January and June every year), teachers receive the hourly increase teaching income. So, is this hourly increase teaching fee calculated for PIT in the entire month of actual receipt or is it allocated correspondingly for the teaching months in the semester?
Second, PIT declaration at units is carried out quarterly. So, is the PIT amount to be paid in the quarter determined by adding the tax amount of each month in the quarter or is calculated according to the average income level of 3 months?
Third, on holidays, the Provincial People's Committee usually has a policy allowing prepayment of salaries and salary allowances, leading to workers being able to receive salaries for 2 months in a month. In this case, how is personal income tax calculated, is it taxable on the total income of 2 months in the same month?
Does the school lease premises to serve students' eating needs? So, when leasing premises, does the school have to make VAT invoices? In case an invoice must be issued, what is the VAT rate applied?
Regarding this issue, the Basic Tax Department of 4 provinces of Tay Ninh has the following opinions:
Overtime pay (overtime teaching) of public teachers is finalized and paid at the end of the semester or after the end of the school year. Only special cases such as retirement, resignation, or job transfer are finalized when there is a decision.
This is personal income taxable income. People with income must declare personal income tax and finalize personal income tax.
Based on point 61, clause 1, Article 9 of Decree No. 126/2020/ND-CP:
b) Declare personal income tax quarterly as follows:
b.1) Taxpayers who are subject to monthly personal income tax declaration specified in point a, clause 1, Article 8 of this Decree, if they are eligible to declare quarterly value-added tax, are allowed to choose to declare quarterly personal income tax.
b.2) Quarterly tax declaration is determined once from the first quarter of tax declaration obligation arising and is applied stably throughout the calendar year".
Clause 2, Article 9 of Decree No. 126/2020/ND-CP stipulates:
2. Taxpayers are responsible for self-determining whether they are subject to quarterly tax declaration to carry out tax declaration according to regulations.
a) Taxpayers who meet the criteria for quarterly tax declaration are allowed to choose to declare tax monthly or quarterly stably throughout the calendar year".
Point c, Clause 2, Article 8 of Decree No. 126/2020/ND-CP stipulates that PIT is declared quarterly and PIT finalization is carried out annually.
Schools leasing premises for canteens must comply with the Law on Management and Use of Public Assets, approved by competent authorities, ensuring publicity and transparency. Schools must issue invoices for rental revenues, and account for them in accordance with regulations. The value of revenue recognition is the value according to the lease contract for each payment of the lessee.
