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Individual - Sample personal income tax calculation
Last reviewed - 28 July 2022Expatriate employee tax calculation
Assumptions
The expatriate employee’s annual net income is VND 1.08 billion (VND 90 million per month). No housing is provided by the employer. The expatriate employee has one dependant.
Tax computation
| Net monthly income | VND 90 million |
| Personal allowance | VND 11 million |
| Dependant allowance | VND 4.4 million |
Income received that is net of Vietnam tax is required to be grossed up in accordance with current regulations. Gross monthly taxable income:
= [(Net income - Personal allowance - Dependant allowance) - Quick deduction]/Gross-up ratio
= [(90,000,000 - 11,000,000 - 4,400,000) - 9,850,000]/0.65
= VND 99,615,385
Monthly PIT payable:
| Monthly PIT payable (million VND) | Tax rate (%) | Calculation | |
| Over | Not over | ||
| 0 | 5 | 5 | 5,000,000 x 5% = VND 250,000 (1) |
| 5 | 10 | 10 | (10,000,000 - 5,000,000) x 10% = 5,000,000 x 10% = VND 500,000 (2) |
| 10 | 18 | 15 | (18,000,000 - 10,000,000) x 15% = 8,000,000 x 15%= VND 1,200,000 (3) |
| 18 | 32 | 20 | (32,000,000 - 18,000,000) x 20% = 14,000,000 x 20% = VND 2,800,000 (4) |
| 32 | 52 | 25 | (52,000,000 - 32,000,000) x 25% = 20,000,000 x 25% = VND 5,000,000 (5) |
| 52 | 80 | 30 | (80,000,000 - 52,000,000) x 30% = 28,000,000 x 30% = VND 8,400,000 (6) |
| 80 | and above | 35 | (99,615,385 - 80,000,000) x 35% = 19,615,385 x 30% = VND 6,865,385 (7) |
Total monthly PIT payable: (1) + (2) + (3) + (4) + (5) + (6) + (7) = VND 25,015,385
Annual PIT payable: VND 25,015,385x 12 = VND 300,184,620
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