On the Ministry of Finance Information Portal, the Thanh Hoa Tax Department has just answered readers regarding obstacles in personal income tax deduction.
According to readers, individuals make a commitment not to deduct tax but then have income at another unit and request the tax authority to have detailed guidance based on legal regulations.
Regarding this content, the tax authority said that based on Clause 2, Article 50 of Decree 253/2026/ND-CP dated June 30, 2026 detailing a number of articles and measures to organize and guide the implementation of the personal income tax law, organizations and individuals pay salaries, wages, remuneration, and other expenses to residents who do not sign contracts or sign labor contracts for less than 3 months.
This regulation includes cases of paying salaries and other income to employees who have terminated labor contracts and the income payment level is from 5 million VND/time or more, then tax must be deducted and the deducted tax amount of the individual must be paid at a rate of 10% on income before paying income to the individual.
In case the income payment level is below 5 million VND/time, the organization or individual paying income is entitled to tax deduction at a rate of 10% when the individual requests it.
Thus, individuals subject to deduction according to the above rate are identified as residents who do not sign a contract or sign a labor contract for less than 3 months with a payment level of 5 million VND/time or more.
Based on Clause 1, Article 67 of Decree 253/2026/ND-CP dated June 30, 2026 detailing a number of articles and measures to organize and guide the implementation of the personal income tax law, organizations and individuals paying income before paying income to individuals are responsible for deducting and paying the deducted tax amount of the taxpayer, except for incomes specified in Clause 4 of this Article.
In case at the time of making the commitment, that individual only has the above income, or that individual arbitrarily declares incorrect information to the income payment unit.
For example, if you previously worked for another company and signed a labor contract - according to the provisions of the Labor Code, but then worked at another company and signed a labor contract according to the provisions of the Labor Code, then the unit that previously made the commitment still has to deduct 10% according to regulations.
