A reader working at a state agency with an income of 12 million VND/month sent a question to the Ministry of Finance. This reader said that he has registered for family deductions for his two young children in junior high school.
From August 2025, you start working overtime at Company X and earn an additional income of 5 million VND/month.
Readers wonder: "Do I have to pay personal income tax (PIT) for my income from Company X? What is the calculation? Can I register for family deductions for each child in two different workplaces (one child in each place)?"
Regarding this issue, based on the provisions of Circular 111/2013/TT-BTC and Resolution 954/2020/UBTVQH14, the Phu Tho Provincial Tax Department has partly answered and clearly explained readers' questions.
10% tax deduction for overtime income
According to regulations, the family deduction for taxpayers is 11 million VND/month (according to Resolution 954) and the deduction for each dependent is 4.4 million VND/month.
The reader's case was determined to have income from 2 places.
Based on the instructions in Point c, Clause 1, Article 9 of Circular 111, taxpayers with many sources of income from salaries and wages will at one time (calculated in full by month) will choose to calculate family deductions for themselves in one place.
Thus, the reader has registered for family deductions for himself (11 million VND/month) and 2 children (total of 8.8 million VND/month) at the state agency.
For income at Company X, if the reader does not sign a labor contract or signs a labor contract for less than 3 months (in accordance with the nature of "working overtime"), the provisions of Point i, Clause 1, Article 25 of Circular 111 will apply.
Specifically, organizations and individuals who pay wages and remuneration to individuals who do not sign labor contracts or sign labor contracts for less than 3 months with a total income payment of VND 2 million/time or more must deduct tax at a rate of 10% on income before paying to individuals.
Therefore, the reader's income of VND 5 million/month at Company X will be deducted by this organization by 10% of personal income tax (ie VND 500,000) before payment.
Each dependent person is only allowed to deduct once
Regarding the second question of the reader about "dividing" 2 children to register for family deduction in 2 places, the tax authority also has a clear answer.
At point c 2.4, Clause 1, Article 9 of Circular 111, it is stipulated that: "Each dependent shall only be entitled to a one-time deduction for one taxpayer in the tax calculation year".
This means that the reader is a taxpayer, so you must register for family deductions for both of your children at the same place of income payment (currently the state agency where you have registered for deductions).
The law does not allow a taxpayer to " subdivide" the number of dependents to register in many different places to pay income. Therefore, readers cannot register for deductions for 1 child at a state agency and 1 child at Company X.
