Understanding which allowances, benefits, and types of income are exempt from Personal Income Tax (PIT) is essential for both employees and employers. This knowledge not only safeguards legal rights but also helps businesses manage costs more effectively. Below is a comprehensive overview of income categories exempt from PIT under current regulations, organized into clear groups for easy reference.

Main categories of income exempt from PIT

1. Income related to wages and salaries:
   • Income of households and individuals directly engaged in agricultural production.
   • Night shift and overtime wages.
   • Pensions paid by the Social Insurance Fund.
   • Income of seafarers, shipowners, and individuals with ship usage rights.
2. Income related to land:
   • Income from transferring houses and land use rights.
   • Income from the value of land use rights owned by individuals.
   • Income from converting agricultural land of households.
3. Income related to money:
   • Interest income from deposits at credit institutions.
   • Income from remittances.
4. Income related to relatives:
   • Income from transferring real estate.
   • Income from inheritance or gifts in the form of real estate.
5. Income related to charity:
   • Income received from charitable funds.

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10 types of income subject to personal income tax (PIT)

1. Income from salaries and wages: Salaries, wages, and other amounts of a salary or wage nature; allowances and subsidies.
2. Income from business activities: Income from production and trading of goods and services; income from independent professional activities of individuals.
3. Income from capital investment: Interest income from loans; dividends; and other forms of capital investment income.
4. Income from capital transfer: Transfer of capital contributions in economic organizations; transfer of securities; and other forms of capital transfer.
5. Income from transfer of real estate: Transfer of land use rights and assets attached to land; transfer of ownership or use rights of houses; transfer of land lease rights or water surface lease rights; other income from real estate transfer.
6. Income from winnings: Winnings from betting; winnings from games and contests with prizes; other forms of winnings.
7. Income from copyrights: Intellectual property rights; technology transfer.
8. Income from franchising
9. Income from receiving gifts, including Securities; capital contributions in economic organizations; business establishments; real estate; other assets.
10. Income from inheritance, including Securities; capital contributions in economic organizations; business establishments; real estate; other assets

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