According to the provisions of Clause 1, Article 25 of Circular 111/2013/TT-BTC on personal income tax deduction (PIT) as follows:
1. Tax deduction
Tax deduction is the act of an organization or individual paying income to calculate the deduction of the tax payable on the taxpayer's income before paying income, specifically as follows:
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b) Income from salary and wages
b.1) For individuals who are residents and sign labor contracts for three (03) months or more, organizations and individuals paying income shall deduct taxes according to the Partial progressive tax rate, including cases where individuals sign contracts for three (03) months or more in many places.
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i) Tax deduction for some other cases
Organizations and individuals who pay wages, remuneration, and other expenses to residential individuals who do not sign labor contracts (according to the instructions in Points c, d, Clause 2, and Article 2 of this Circular) or sign labor contracts for less than three (03) months with a total income payment of VND two million (2,000,000) or more must deduct tax at a rate of 10% on income before paying to individuals.
In case the individual has only one income subject to tax deduction according to the above rate but the estimated total taxable income of the individual after deducting household income is not yet up to the level of tax payment, the individual with income must make a commitment (according to the form issued with the document on tax management) to the income payment organization to organize the income payment as a temporary basis for not deducting personal income tax.
Individuals who make a commitment according to the instructions in this point must register for tax and have a tax code at the time of commitment.
Thus, if an individual has an income from 02 places and signs a labor contract for 03 months or more, the personal income tax will be calculated according to the Partial Progressive Tax System.
Individuals with income from many places, including places where labor contracts are signed for less than 03 months and salaries from VND 2,000,000/time or VND 2,000,000/month or more, will be deducted by 10% of their income before paying to individuals.
