How to calculate family deduction when working in two or more places

Individual taxpayers wonder how to calculate family deductions if they work for two companies?

Answering this question, Ms. Tran Thi Thuy Binh, Director of Bluecom Vietnam Tax Agency, said that the way to calculate personal income tax when having income from 2 or more places is as follows:

Case 1 : If an individual has income from 2 places and signs a labor contract for 3 months or more, personal income tax is calculated according to the progressive tax table.

Case 2 : Individuals with income from many places, including places with labor contracts of less than 3 months or contracts for assignment or seasonal contracts with a salary of 2 million VND/time or 2 million VND/month or more, then tax is deducted at a rate of 10% on income before payment to the individual.

W-VP bank 3 (76).jpg — Each individual can only calculate family deductions for themselves at one place. Photo: Nam Khanh

Accordingly, specific cases of family deduction:

Personal deduction: Each individual is deducted 11 million VND/month and can only calculate personal family deduction at one place. Normally, employees will choose to deduct at the payment place where the individual participates in social insurance.

Dependent deductions: Biological children, adopted children (under 18 years old or in college); spouse (incapable of working); biological parents, adoptive parents with income under 1 million VND/month.

Conditions and documents for registering dependents:

Must have documents proving relationship (birth certificate, household registration book, ID card), and supporting documents confirmed by local authorities where the dependent lives.

Must be registered and approved by the tax authority where the employee receives wages or salaries.

Dependents are only eligible for family deductions from a single taxpayer at the time of support.

Regarding the time of registering dependents, Ms. Binh said that it is necessary to register in the first month of receiving income to be deducted or before submitting the annual personal income tax settlement.

Is the monthly allowance for uncles and aunts counted as dependent family deduction?

If the conditions specified in Clause 1, Article 9 of Circular No. 111/2023/TT-BTC and Articles 105, 106, 107 of the Law on Marriage and Family are met, the taxpayer who is providing support to his/her uncle and aunt will be entitled to a deduction for dependents.

How to calculate family deduction according to the latest regulations

The current family deduction level when calculating personal income tax (PIT) is applied according to Resolution No. 954/2020/UBTVQH14. Individuals can calculate their own tax after family deduction.