{"id":1204,"date":"2025-04-16T04:31:59","date_gmt":"2025-04-16T04:31:59","guid":{"rendered":"https:\/\/hpgrp.vn\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/"},"modified":"2025-04-16T04:31:59","modified_gmt":"2025-04-16T04:31:59","slug":"why-do-we-have-to-pay-personal-income-taxreasons-and-significance","status":"publish","type":"post","link":"https:\/\/hpgrp.vn\/en\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/","title":{"rendered":"Why Do We Have to Pay Personal Income Tax?Reasons and Significance"},"content":{"rendered":"<p dir=\"ltr\">Personal income tax (PIT) is a financial obligation that anyone with taxable income must fulfil.But why do we have to pay personal income tax?This article will explain the four main reasons, helping you understand the significance of paying personal income tax and why it is an important responsibility.  <\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Mu\u0323c lu\u0323c n\u00f4\u0323i dung<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/hpgrp.vn\/en\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/#1_Contributing_to_the_development_of_the_country\" title=\"1. Contributing to the development of the country\">1. Contributing to the development of the country<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/hpgrp.vn\/en\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/#2_Ensure_social_justice\" title=\"2. Ensure social justice\">2. Ensure social justice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/hpgrp.vn\/en\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/#3_Compliance_with_obligations_and_legal_requirements\" title=\"3. Compliance with obligations and legal requirements\">3. Compliance with obligations and legal requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/hpgrp.vn\/en\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/#4_Receive_benefits_from_the_government\" title=\"4. Receive benefits from the government\">4. Receive benefits from the government<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/hpgrp.vn\/en\/why-do-we-have-to-pay-personal-income-taxreasons-and-significance\/#Understanding_and_Properly_Paying_Personal_Income_Tax\" title=\"Understanding and Properly Paying Personal Income Tax\">Understanding and Properly Paying Personal Income Tax<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Contributing_to_the_development_of_the_country\"><\/span>1. Contributing to the development of the country<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Personal income tax is one of the main sources of revenue for the state budget.This money is used for: <\/p>\n<p dir=\"ltr\">Building infrastructure such as roads, bridges, and schools.<\/p>\n<p dir=\"ltr\">Invest in healthcare, education, and public services.<\/p>\n<p dir=\"ltr\">Support social welfare programs, help those in need.<\/p>\n<p dir=\"ltr\">When you pay personal income tax, you are directly contributing to the sustainable development of Vietnam.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"2_Ensure_social_justice\"><\/span>2. Ensure social justice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Personal income tax is calculated according to a progressive tax rate, meaning that those with higher incomes will pay a larger percentage. For example:<\/p>\n<p dir=\"ltr\">Taxable income below 11 million VND\/month (for individuals without dependents) is usually exempt from tax.<\/p>\n<p dir=\"ltr\">An income of 50 million VND\/month is subject to a tax rate of 25%-30%.<\/p>\n<p dir=\"ltr\">This mechanism helps reduce the wealth gap and distribute social resources more equitably.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"3_Compliance_with_obligations_and_legal_requirements\"><\/span>3. Compliance with obligations and legal requirements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">According to the Personal Income Tax Law in Vietnam, paying personal income tax is mandatory for all individuals with taxable income.If you evade taxes or fail to pay on time, you may: <\/p>\n<p dir=\"ltr\">Fined administratively from a few million to tens of millions of dong.<\/p>\n<p dir=\"ltr\">Facing legal troubles, affecting personal reputation.<\/p>\n<p dir=\"ltr\">Paying taxes according to regulations helps you avoid unnecessary risks.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"4_Receive_benefits_from_the_government\"><\/span>4. Receive benefits from the government<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Paying personal income tax brings many practical benefits, including:<\/p>\n<p dir=\"ltr\">Family deductions: 11 million VND\/month for oneself and 4.4 million VND\/month for each dependent.<\/p>\n<p dir=\"ltr\">Opportunity to receive a tax refund if overpaid.<\/p>\n<p dir=\"ltr\">Eligible to receive support policies from the government, such as social subsidies or financial incentives.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Understanding_and_Properly_Paying_Personal_Income_Tax\"><\/span>Understanding and <a href=\"https:\/\/hpgrp.vn\/en\/personal-income-tax-who-needs-to-pay-and-what-you-should-know\/\">Properly Paying Personal Income Tax<\/a><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">To file personal income tax effectively, you need:<\/p>\n<p dir=\"ltr\">Learn about tax exemptions such as mandatory insurance (social insurance 8%, health insurance 1.5%, unemployment insurance 1%) and family deductions.<\/p>\n<p dir=\"ltr\">Accurate income declaration, usually supported by the company if you are an employee.<\/p>\n<p dir=\"ltr\">Pay attention to the tax submission deadlines (monthly, quarterly, or annually) to avoid penalties.<\/p>\n<p dir=\"ltr\">If you need assistance, <a href=\"https:\/\/hpgrp.vn\/en\/\"><strong>H&amp;P Group<\/strong><\/a> offers professional personal income tax consulting services, updated according to the latest circulars, helping you comply with regulations and optimise costs.<\/p>\n<p dir=\"ltr\">Paying personal income tax is not only a legal obligation but also a way for you to contribute to the development of the country and a fairer society.Understanding the reasons for paying personal income tax helps you fulfil this responsibility voluntarily and effectively. <\/p>\n<p dir=\"ltr\"><a href=\"https:\/\/hpgrp.vn\/en\/contact\/\"><strong>Contact H&amp;P Group<\/strong><\/a> now for free consultation on personal income tax, accounting, and legal matters according to the latest regulations!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Personal income tax (PIT) is a financial obligation that anyone with taxable income must fulfil.But why do we have to pay personal income tax?This article will explain the four main reasons, helping you understand the significance of paying personal income tax and why it is an important responsibility. 1. Contributing to the development of the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1204","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/posts\/1204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/comments?post=1204"}],"version-history":[{"count":0,"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/posts\/1204\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/media\/1096"}],"wp:attachment":[{"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/media?parent=1204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/categories?post=1204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hpgrp.vn\/en\/wp-json\/wp\/v2\/tags?post=1204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}