According to the provisions of law, organizations and individuals that pay wages, salaries and other expenses to residents who do not sign labor contracts or sign labor contracts of less than three months have a total income from two million dong/time or more, the tax must be deducted at the rate of 10%. However, if that resident is eligible to make commitment 02/CK-TNCN and make the above commitment, 10% tax has not been withheld at the time of income payment.

To help you understand more about the conditions for making commitment 02 on personal income tax, Hong Bang Law would like to advise as follows:

Legal basis

• Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Personal Income Tax, the Law amending and supplementing a number of articles of the Law on Personal Income Tax and Decree No. 65/2013/ND-CP dated June 27, 2013 of the Government detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Income Tax. individual

Conditions for making commitments 02

• The resident does not sign a labor contract or signs a labor contract of less than 3 months.
• Having a total income of 02 million VND/time or more.
• Only income is subject to tax deduction (if you work at 02 or more places, you will not be able to make a commitment).
• Estimate the total taxable income of the individual after deducting family circumstances that are not yet taxable. According to Resolution 954/2020/UBTVQH14 on adjusting the reduction of family circumstances, it is estimated that the total income is 132 million VND/year or less if there are no dependents, only a commitment can be made.
• Must register for tax and have a tax identification number at the time of commitment.

Note: Individuals who make commitments must be responsible for their commitments. In case of fraud detection, they will be handled according to the provisions of the Law on Tax Administration.

  The above are the legal provisions on conditions for making commitment 02 on personal income. If you need advice, more detailed answers as well as how to access this service, please contact directly the Deputy Director in charge of business: Lawyer Nhat Nam via hotline: 0912.35.65.75, or call our free legal consultation hotline: 1900.6575 and send email to lienheluathongbang@gmail.com

Wishing you and your family good health, peace and success!

Best regards!