Question: When the company pays for MCs, singers, and external collaborators and does not sign labor contracts because it is often case-based and low-cost, does it have to withhold PIT and pay them many times?
My company is a media company, so it often organizes events for customers. At that time, my company used to hire MCs, singers, and external collaborators and did not sign labor contracts because it was often case-based and low-cost, usually less than 2 million VND each time. So when the company pays these people, does it have to withhold their PIT? And can you pay multiple times in a month?
Answer:
In Article 25 of Circular No. 111 of 2013 of the Ministry of Finance on tax, it is stipulated that: Organizations and individuals that pay wages, remunerations and other expenses to resident individuals who do not sign labor contracts or sign labor contracts for less than three months with a total income of two million dong/time or more, must withhold tax at the rate of 10% on the income before paying to individuals.
In the case of your company, each payment under 2 million does not have to withhold PIT and does not limit the number of payments in a month.
- UNLOCK YOUR BUSINESS POTENTIAL: AFFORDABLE & EXPERT ACCOUNTING AND TAX SERVICES ACROSS KHANH HOA, LAM DONG & HO CHI MINH CITY
- AFFORDABLE AND RELIABLE PAYROLL SERVICES IN KHANH HOA, LAM DONG, AND HO CHI MINH CITY
- TAX TREATMENT WHEN BUYING SOFTWARE FROM OVERSEAS
- COMMON PRACTICE ON BASIC UNDERSTANDING OF FCT IN VIETNAM
- TAX POLICY IN VIETNAM FOR THE MEMBERSHIP FEE FROM ORGANIZATION WITHOUT USING INVOICE
- REGULATIONS ON WITHHOLDING TAX 10% ON THE PAYMENT TO FREELANCERS IN VIETNAM