I WORL IN MANY PLACES
YOU NEED TO KNOW:
1. Tax calculation
2. Calculate deduction for self and dependents
3. Finalization of PIT
4. Pay social insurance
I / How to calculate personal income tax in 2 places:
According to Clause 1, Article 25 of Circular 111/2013/TT-BTC stipulating the deduction of PIT: “
1. Tax deduction
– Tax withholding is the fact that income-paying organizations and individuals deduct the payable tax amount from the taxpayer’s income before paying the income, specifically as follows:
b) Income from salary, wages
b.1) For both residents and employees who sign labor contracts of three (03) months or more, income-paying organizations and individuals shall deduct tax according to the partially progressive tax schedule, including the case of individuals. Employees sign contracts of three ( 03 ) months or more at many places .
i) Tax withholding for some other cases Organizations and individuals that pay wages, salaries and other expenses to resident individuals who do not sign labor contracts (under the guidance at points c, d, Clause 2, Article 2 of this Circular) or signing a labor contract of less than three (03) months with a total income of two million (VND 2,000,000) or more times, the tax must be deducted at the rate of 10% of the total income. enter before paying to individuals.
In case an individual has only income that is subject to tax withholding according to the above rate, but the estimate of the individual’s total taxable income after deduction of family circumstances is not enough to pay tax, the individual has make a commitment ( according to the form promulgated together with the guiding document on tax administration ) and send it to the income paying organization for the income paying organization as a temporary basis for not deducting personal income tax .
Individuals making commitments under the guidance at this point must register for tax and have that tax amount at the time of commitment. “
So :
– Individuals earning income from many places and signing a labor contract of 3 months or more shall calculate PIT according to the Progressive Tax Schedule.
– Individuals who have incomes from many places, including one where they sign up for less than 3 months (seasonal, contracted, collaborators…) but (salary from 2,000,000/time or month or more) must deduct 10 % ( Do not make commitments because of income in 2 places ) .
II . Calculate deduction for self and dependents:
According to Clause 1, Article 9 of Circular 111/2013/TT-BTC providing for the reduction of family circumstances:
” c.1.1 ) Taxpayers who have multiple sources of income from salaries , wages , business , then at a given time ( province by month ) taxpayers choose to calculate deductions for their family circumstances in one place . .
i) Taxpayers only have to register and submit proofs for each dependent once during the period for which family circumstance-based deduction is calculated. In case the taxpayer changes the place of work, place of business, registration and submission of documents to prove the dependents is the same as in the case of first-time registration of dependents under the guidance at Item h.2.1.1.1, point h.2.1.1.1, point. h , paragraph 1 , this Article . “
According to Official Letter 34683/CT – TTHT dated 26/05/2017 of Hanoi Tax Department:
“In case a taxpayer signs a labor contract for more than three months in two places, the taxpayer is allowed to make deductions for his/her family circumstances at an income-paying agency and family circumstance-based deductions for dependents at the agency. This reduction in family circumstances does not affect the personal income tax liability of the whole person if the principles are still maintained as guided in Point c, Clause 1, Article 9 of Circular No. 111/2013/TT – BTC .”
So :
– Individuals with multiple sources of income are only allowed to deduct themselves at one place.
– If you want to reduce your dependents, you must register at the company you want to reduce.
III . PIT finalization has 2 income places:
According to Official Letter 801/TCT-TNCN dated March 2, 2016 of the General Department of Taxation: – Organizations that pay incomes from salaries and wages regardless of whether tax withholding or not withholding tax are responsible. declare tax finalization and tax finalization on behalf of authorized individuals.
– In case the organization does not generate income from salaries or wages in the year, it is not required to declare PIT finalization.
So :
If your company pays someone’s salary, it must finalize personal income tax for them (whether or not there is a tax deduction). That is to finalize the salary and wages that your company pays to that employee.
– If you don’t pay anyone’s salary, you don’t have to settle.
“Individuals earning incomes from salaries and wages sign labor contracts of 03 months or more at an income-paying organization, and at the same time have a monthly average income of not more than 10 million VND in other places in a year. If the individual does not request tax finalization on this current income, he/she is authorized to settle at an income paying organization that signs a labor contract. from 03 months or more. If an individual has a request for tax finalization on current income, the whole person shall directly settle the settlement with the tax office.”
IV . How do individuals with incomes from 2 places pay social insurance?
Pursuant to the provisions of Article 42 of Decision 595/QD – Social Insurance
1. Employees who simultaneously have 02 or more labor contracts with different units shall pay social insurance and unemployment insurance premiums according to the first signed labor contract, pay health insurance premiums according to the labor contract with the highest salary, and pay occupational accident and occupational disease insurance according to each labor contract.
So :
– Pay social insurance, unemployment insurance at the place where the first labor contract is signed
– Pay health insurance premiums at the place where the labor contract is signed with the highest salary.
