Official letter 16333/CTHDU-TTHT about PIT policy:
Pursuant to the above regulations and the content presented in the Official Letter No. CV-VDP2023-01 dated November 21, 2023 of Van Dac Phuc Food Company Limited:
In case Van Dac Phuc Company incurs severance payments to employees in 2023:
- When the Labor Contract terminates according to the provisions of the current Labor Code, the Company is responsible for paying severance benefits to employees who have worked regularly for the Company for 12 months or more. This subsidy is not included in the employee's personal income taxable income.
- The Company pays a severance allowance to the employee, but the employee is still working at the Company and has not ended the labor contract as prescribed, this is not a severance allowance. This subsidy is a payment in the nature of salary and wages and is an income subject to personal income tax according to regulations.
For employees who are resident individuals and sign labor contracts of three (03) months or more, the Company shall deduct tax according to the Partial Progressive Tax Schedule. For employees who are resident individuals who do not sign a labor contract or sign a labor contract of less than three (03) months with a total income payment of two million (2,000,000) VND/time or more, the deduction will be made. at a rate of 10% of income before paying to employees.
