Personal Income Tax Policy On Income From Salaries And Wages

On October 21, 2025, the General Department of Taxation under the Ministry of Finance issued Official Letter No. 4551/CT-CS providing guidance on personal income tax (PIT) policy applicable to income from salaries and wages.

1. Income from salaries and wages is subject to personal income tax

According to tax regulations, income from salaries and wages includes:

• Salaries, wages, and remuneration;

   

• Income items having the nature of salaries and wages;

   

• Bonuses in cash or in kind, in all forms.
  

All of the above income, whether paid in cash or in kind, is subject to personal income tax if it arises from an employment relationship.

2. Time for determining taxable income

The time for determining taxable income from salaries and wages is the time when the organization or individual pays the income to the employee.

3. Withholding and declaration of personal income tax

For resident individuals who sign labor contracts with a term of three (03) months or more, the income-paying organization is responsible for:

• Withholding personal income tax according to the progressive tax tariff;

   

• Declaring personal income tax on a monthly or quarterly basis;

   

• Finalizing personal income tax and finalizing on behalf of individuals who authorize the organization to do so.
  

In cases where individuals are not eligible to authorize tax finalization, they must declare, pay, and finalize personal income tax by themselves in accordance with regulations.

4. Notes for taxpayers

Taxpayers should:

• Fully aggregate all income from salaries and wages arising during the tax period;

   

• Properly declare, pay, and finalize personal income tax in accordance with regulations;

   

• Proactively contact the directly managing tax authority if any issues arise.
  

 ✅ Conclusion

Current tax regulations clearly stipulate the calculation, withholding, declaration, and finalization of personal income tax on income from salaries and wages. Taxpayers should base on their actual income to fulfill their tax obligations in compliance with the law, in order to avoid potential risks.

Ngan Ho