Insurance payments are no longer strange to today’s workers. However, there will be some amounts paid for insurance that are not deductible when calculating personal income tax. Through today’s article, let’s learn and clarify this issue with Pham Consult!
1. What are the deductions when calculating personal income tax from salaries and wages?
Pursuant to the provisions of Article 9 of Circular 111/2013/TT-BTC (amended by Article 15 and Clause 6, Article 25 of Circular 92/2015/TT-BTC), personal income tax deductions in 2023 from salary , wages include:
(1) Family deductions
(2) Insurance contributions and voluntary pension funds
(3) Charitable, humanitarian, and study promotion contributions
2. Which insurance contributions are not considered deductions when determining taxable income for salaries and wages?
Pursuant to Clause 2, Article 9, Circular 111/2013/TT-BTC stipulates as follows:
- Deductions for insurance contributions and voluntary retirement funds
- a) Insurance contributions include: social insurance, health insurance, unemployment insurance, professional liability insurance for some occupations that require compulsory insurance.
However, according to the provisions of Article 41 of the Law on Occupational Safety and Health 2015, it is clearly stipulated that the insurance premium for labor accidents and occupational diseases is calculated on the basis of the employee’s monthly salary and paid by the employer. closed motion.
Thus, insurance contributions for labor accidents and occupational diseases are not considered a deduction when determining personal income tax for salaries and wages.
3. Which employee benefits and allowances will not be subject to personal income tax?
Pursuant to Point b, Clause 2, Article 3 of Decree 65/2013/ND-CP (amended by Clause 3, Article 2, Decree 12/2015/ND-CP), it is stipulated as follows:
- Income from salaries and wages that employees receive from employers, including:
- a) Salaries, wages and amounts of salary and wages received in monetary or non-monetary forms.
- b) Allowances and subsidies, except for the following allowances and subsidies:
– Monthly allowances, preferential allowances and one-time allowances according to the provisions of law on incentives for people with meritorious services;
– Monthly allowance, one-time allowance for those participating in the resistance war, defending the homeland, doing international missions, and youth volunteers who have completed their tasks;
– National defense and security allowances; subsidies to the armed forces;
– Toxic and dangerous allowances for industries, occupations or jobs in the workplace with toxic and dangerous elements;
– Attraction allowances, regional allowances;
– Unexpected hardship allowance, labor accident allowance, occupational disease allowance, one-time allowance when giving birth or adopting a child, allowance due to reduced working capacity, one-time pension allowance, money Monthly survivor benefits, severance pay, job loss benefits, unemployment benefits and other benefits according to the provisions of the Labor Code and the Social Insurance Law;
– Subsidies for social protection subjects according to the provisions of law;
– Service allowance for senior leaders;
– One-time allowance for individuals when transferring work to areas with extremely difficult socio-economic conditions, one-time allowance for officials and civil servants working on sovereignty over sea and islands according to regulations of the Government. law. One-time roaming allowance for foreigners coming to reside in Vietnam, Vietnamese people working abroad, Vietnamese people residing abroad long-term and returning to Vietnam to work;
– Allowances for village health workers;
– Industry-specific allowances.
Allowances and subsidies not included in taxable income specified in this Point must be prescribed by competent state agencies.
Accordingly, the allowances and subsidies listed according to the above regulations will not be subject to Personal Income Tax.
Thus, besides the insurance amounts that are deductible when calculating personal income tax from salaries and wages, there will be insurance amounts that will not be deducted according to the provisions of law. Hope the above information will help your work.