Do students who teach extra classes have to register their business?

Article 6, Circular 29/2024 on extra teaching and learning issued by the Ministry of Education and Training stipulates that organizations or individuals organizing extra teaching outside of school for money must register their business in accordance with the provisions of law and publicly disclose information about the subjects they teach.

Students who work as tutors are considered individuals who work outside of school and earn money. Therefore, if students open their own tutoring classes, they will have to register their tutoring business according to the regulations in Circular 29.

In the case of students tutoring through tutoring centers/facilities, they do not need to register their business, but must sign a contract with the tutoring center/facilities. The tutoring center/facilities that sign a contract with students must register their tutoring business according to regulations.

Principles students need to keep in mind when tutoring

According to Article 3 of Circular 29, when working as a tutor, students need to comply with the following principles:

-Extra classes may only be organized when students have a need for extra classes, voluntarily take extra classes, and have the consent of their parents or guardians. Students organizing extra classes may not use any form of coercion to force students to take extra classes.

-The content of extra classes must not be contrary to the provisions of Vietnamese law and must not contain prejudices about ethnicity, religion, profession, gender, or social status.

-Extra teaching must contribute to developing students' qualities and abilities; it must not affect the organization and implementation of the school's educational program and the implementation of the teachers' subject programs.

-The duration, time, location and form of organization of extra classes must be suitable for the psychology and age of the students, ensuring the health of the students; comply with the provisions of law on working hours, overtime hours and the provisions of law on security, order, safety, environmental sanitation, fire prevention and fighting in the area where extra classes are held.

In addition, no extra classes are organized for primary school students, except for training in arts, sports, and life skills, according to Clause 1, Article 4 of Circular 29.

Do students who work as tutors have to pay personal income tax?

If a student works as a tutor and establishes a business under his/her own name, he/she must pay personal income tax on the business.

Article 4, Circular 40/2021 stipulates personal income tax for business households. Specifically, business households and business individuals with revenue from production and business activities in the calendar year of VND 100 million or less are not required to pay personal income tax according to the law on personal income tax.

From January 1, 2026, the threshold for personal income tax payment for individuals and business households will increase to VND 200 million according to the provisions of Article 5, Article 17, Clause 2, Article 18, Law on Value Added Tax 2024.

In case a student signs a tutoring contract with a tutoring center/facility, personal income tax will be deducted from the monthly salary according to Article 25, Circular 111/2013.

Accordingly, labor contracts with a term of less than 3 months and monthly salaries of students working part-time from 2 million VND or more will have their income paid by the income payer deduct tax at a rate of 10% on the income before payment.

Labor contracts with a term of 3 months or more and monthly income reaching a taxable level are also subject to tax payment.

Thus, if a student signs a contract for less than 3 months with an income payment of 2 million VND/time or more or the total payments in a month are greater than 2 million VND, they do not have to pay personal income tax. However, the income payer will deduct tax at a rate of 10% on the income before payment.