How do teachers tutoring in schools calculate personal income tax?
Sending a question to the Ministry of Finance's Electronic Information Portal, a citizen said that he is a teacher and has questions about the calculation of personal income tax on extra tutoring fees in schools.
This person gave an example that a teacher teaches 30 teaching sessions a year, and the remuneration is from parents' contributions to pay teachers. The tutoring fee in 2024 is 35 million VND. This person wondered if when calculating personal income taxable income in 2024, the entire amount of 35 million VND must be included or not?
Answering this content, Vinh City Tax Sub-Department said that according to Clause 1, Article 2 of Circular 17/2012/TT-BGDĐT dated May 16, 2012 of the Ministry of Education and Training on regulations on extra classes and tutoring (replaced by Circular 29/2024/TT-BGDĐT, effective from February 14, 2025), extra classes and tutoring are extra classes and tutoring activities that collect money from learners, with content according to the general education program but outside the education plan of the general education program issued by the Ministry of Education and Training.
In addition, according to point c, clause 2, Article 2 of Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, income from salaries and wages includes remuneration received in many forms, including money for participating in teaching activities.
Based on the above regulations and the reflected content, Vinh City Tax Department said that income from tutoring in schools for teachers is determined as remuneration received from participating in teaching activities and is taxable income according to Point c, Clause 2, Article 2 of Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.
Vinh City Tax Department requests taxpayers to base on the actual situation and compare with the regulations in relevant legal documents to implement according to regulations.
In fact, this is not the only question from teachers related to the issue of personal income tax payment. Previously, the Tay Ninh Base Tax Department 4 also had answers to the question of Ms. Nguyen Hoang Linh - an elementary school accountant related to the calculation of personal income tax on overtime teaching fees.
Specifically, the tax authority affirmed: The overtime teaching fee is a taxable income. People with this income must declare and finalize personal income tax.
How to calculate tutoring fees
Regarding the question of Mr. Nguyen Van Lan - a primary school teacher in Ho Chi Minh City about the method of calculating overtime, the Ministry of Education and Training said that the calculation basis includes salary according to job position and all salary allowances.
In which, salary allowances according to current regulations include: Seniority allowance exceeding the frame; allowance for concurrently holding leadership positions; regional allowance; special allowance; attraction allowance; mobile allowance; hazardous and dangerous allowance; professional seniority allowance; preferential allowance according to the profession; professional responsibility allowance; work responsibility allowance.
The Ministry of Education and Training said that when determining the salary as the basis for calculating overtime pay for teachers, the above-mentioned salary allowances (if they are being enjoyed) are fully included in the monthly salary as the basis for payment according to regulations.
According to current regulations of the Ministry of Education and Training, the total number of extra teaching periods in a school year for teachers must not exceed 200 periods. If exceeding the limit due to teacher shortage, the school principal must notify in writing to the competent authority.
Each tutoring hour of teachers is calculated as 1.5 times the salary of a regular tutoring hour. The total tutoring hour salary for a school year is equal to the total number of tutoring hours in that year multiplied by the remuneration for each tutoring hour.
