Level 4 · ages 16–18OECD FLMixed
Personal income tax
🎯 Goal: Understand income tax applies to taxable income (after deductions), progressively; paying tax is a civic duty.
Income tax applies to taxable income = income − deductions (self, dependents). It is progressive: higher income, higher rate on the upper part.
Let’s explore
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There are deductions (self, dependents) before tax is computed.
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Progressive by bracket: only the high part is taxed at a high rate.
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Paying tax correctly is a civic duty; evasion is illegal.
Practice activity
🧮 Income 15M/month, deduction 11M — what is taxable income?
Worked example: Income 15M, self-deduction 11M → taxable income = 15 − 11 = 4M. Only this 4M is taxed (by bracket), not the whole 15M.
Quick quiz
1. Income tax applies to?
→ Taxable income (after deductions)
2. Income 15M, deduction 11M → taxable?
→ 4M
3. "Progressive by bracket" means?
→ Higher part taxed at higher rate
4. Family deductions apply to?
→ Self and dependents
5. Paying tax correctly is?
→ A civic duty
6. Tax evasion is?
→ Illegal
🎯 Real-life mission
Calculate taxable income for a 15M salary with an 11M deduction.
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