How do private tutors pay taxes?

Extracurricular teaching activities are regulated by law and extracurricular teachers must pay taxes according to regulations.

Individuals who organize extracurricular tutoring activities for money must register their business according to the law, that is, they must establish a business or business household.

Extra teachers must pay personal income tax. (Illustration photo)

How do private tutors pay taxes?

According to regulations, teachers are allowed to teach extra classes in many places and when they participate in extra classes outside of school under contract, the income from extra teaching activities is also included in taxable income.

Pursuant to Article 25, Circular 92/2015, personal income tax on income from salaries and wages is determined by the formula: Personal income tax = Taxable income x Tax rate

In which, taxable income is calculated as follows: Taxable income = Taxable income - Deductions. However, the above formula for calculating taxable income only applies to teachers who are resident individuals and have signed a teaching contract for 3 months or more.

Tax rates apply according to the progressive tax schedule. (Photo: luatvietnam)

Regulations on extracurricular teaching activities

Article 6 of Circular 29/2024 stipulates that organizations or individuals that organize extra-curricular teaching outside of school for money must register their business in accordance with the law and publicly disclose information about the subjects they teach.

Along with that, organizations or individuals teaching extra classes are required to publicly disclose the number of extra classes for each subject according to each grade level; location, form, and time of organizing extra classes; list of extra teachers and tuition fees before enrolling students for extra classes.

Extracurricular tutors need to ensure good moral qualities and professional competence appropriate to the subjects they teach.

At the same time, teachers who are teaching at schools and participate in extracurricular teaching must report to the Principal, Director or head of the school about the subjects, location, form and time of extracurricular teaching.

Anh Anh

Source: https://vtcnews.vn/giao-vien-day-them-dong-thue-nhu-the-nao-ar924018.html