Official Dispatch No. 5250/TCT-DNNCN dated November 24, 2023 of the General Department of Taxation Guiding for converting income from NET salary to calculate personal income tax
Accordingly, the General Department of Taxation responded to the Tax Department of Hanoi city based on Official Dispatch No. 2037/BTC-TCT dated February 16, 2017 of the Ministry of Finance. In cases where foreign workers sign a labor contract with the Company, they receive income that does not include personal income tax and are paid by the company on behalf of health insurance, house rent, and personal income tax when determining income as a basis. regulations are:
+ The amount of health insurance paid on behalf of the Company is income that is added and also subtracted from the income determination formula as a basis for conversion because the health insurance amount is a deduction.
+ For the rent paid on behalf of the Company, it is included in income as a basis for conversion based on the actual amount paid on behalf but does not exceed 15% of the total taxable income (excluding rent) at the unit.
+ The determination of personal income tax in this case is carried out according to the instructions in Point a, Clause 4, Article 7 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance.