PIT WHEN WORKING IN TWO PLACES

In the context of the modern labor market, it is increasingly common for employees to augment their income by working for multiple entities simultaneously. However, legal regulations and the calculation of PIT when working in two places remain a legal hurdle for many employees and income-paying enterprises alike. Failure to thoroughly understand the law can lead to tax arrears, late payment penalties, or the forfeiture of tax refund rights.

(“PIT”: Personal Income Tax)

1. Is income from a second employment contract subject to PIT?

Under current legal regulations, the entire income derived from wages and remuneration received by an employee upon executing an Employment Contract at a second workplace is classified as taxable income for PIT purposes.

Regarding taxpayers, PIT payers include resident individuals with taxable income generated within and outside the territory of Vietnam, pursuant to Clause 1, Article 2 of the Law on Personal Income Tax 2025 (amended and supplemented in 2026).

Regarding taxable income, pursuant to Clause 2, Article 3 of the Law on Personal Income Tax 2025, taxable income includes: wages, remuneration, and wage/remuneration-like items; allowances; and benefits (in cash or in kind) in any form received by the employee arising from the employment relationship.

Wherein, assessable income from wages and remuneration is determined as:

Assessable income = Total taxable income – Mandatory insurance contributions – Deductions (including personal deductions for the taxpayer and deductions for dependents).

Whether the income arises at the first, second, or multiple other locations, resident individuals are obligated to declare and pay tax on their total received income in strict compliance with the law.

2. How to calculate the PIT rate for income at a second workplace

The applicable tax rate for income from wages and remuneration at the second paying entity depends directly on the term and form of the Employment Contract. This is regulated under Article 9 of the Law on PIT 2025 (amended and supplemented in 2026) and Article 50 of Decree 253/2026/ND-CP, specifically as follows:

2.1. In case of signing an Employement contract with a term of 03 months or more at the second workplace:

– Applicable tax rate: Income from wages and remuneration at the second workplace is calculated according to the Partially Progressive Tax Schedule corresponding to the assessable income level, comprising 05 tax brackets: 5%, 10%, 20%, 30%, and 35%.

Principle of family circumstance deductions: The personal deduction for the taxpayer themselves can only be applied at 01 income-paying entity at a time, pursuant to Clause 1, Article 48 of Decree 253/2026/ND-CP.

Based on the above regulation, when the income-paying organization at the second workplace calculates the monthly withholding tax, the employee’s taxable income will not be subject to the personal deduction. The tax will be calculated directly based on the Partially Progressive Tax Schedule after deducting mandatory insurance contributions (if any).

2.2. In case of signing an Employement contract of less than 03 months or without an Employement contract

For income payments to individuals without an Employement contract or with an Employement contract of less than 03 months (e.g., seasonal workers, collaborators, service providers), the tax rate is applied as follows: The income-paying organization shall execute PIT withholding at a flat rate of 10% on the total income before payment. This rate is applicable to each income payment amounting to VND 05 million or more.

3. Procedures for PIT declaration and finalization when working in two places

The procedure for managing, declaring, and finalizing PIT for employees working in two places is outlined as follows:

3.1. Withholding and provisional tax declaration by the income-paying organization

During the monthly/quarterly income generation phase, the enterprise, acting as the income-paying organization, must execute the following:

– Withholding tax at source: Prior to paying wages to the employee, the paying organization at the second workplace must withhold the PIT amount applying the tax rate mentioned in Section 2 above.

– Tax declaration and payment: On a periodic basis as prescribed by law, the enterprise shall prepare the withholding PIT declaration and remit the tax amount to the State Treasury.

– Issuance of tax withholding receipts: The second enterprise is responsible for issuing a PIT withholding receipt to the employee upon request. This document serves as the legal basis for the employee to conduct their year-end tax finalization.

3.2. Year-end PIT finalization by the employee

Resident individuals earning income from wages and remuneration from 02 or more places (with ECs of 03 months or more) are strictly required to directly file an annual tax finalization dossier with the competent tax authority. The employee is not permitted to authorize the enterprise to finalize taxes on their behalf.

The employee shall consolidate their total income and determine their overall tax liability for the entire fiscal year in accordance with legal regulations.

>> CAPITAL TRANSFER TAX OF FOREIGN ENTERPRISES, REGULATIONS ON TRANSACTIONS EXECUTED OUTSIDE THE TERRITORY OF VIETNAM https://linconlaw.vn/capital-transfer-tax-of-foreign-enterprises-regulations-on-transactions-executed-outside-the-territory-of-vietnam/

>> DECREE 253/2026/NĐ-CP: 22 CATEGORIES OF INCOME NOW OFFICIALLY EXEMPT FROM PERSONAL INCOME TAX https://linconlaw.vn/decree-253-2026-nd-cp-22-categories-of-income-now-officially-exempt-from-personal-income-tax/