1. Personal Income Tax Deduction for Dependents
According to point b, clause 1, Article 9 of Circular 111/2013/TT-BTC, the deductions for dependents when calculating personal income tax are as follows:
|
No. |
Type of Deduction |
Deduction Amount |
|
1 |
For the taxpayer |
11 million VND/month, 132 million VND/year |
|
2 |
For each dependent |
4.4 million VND/month |
2. Conditions for Dependent Deductions
2.1. Who is Considered a Dependent?
According to point d, clause 1, Article 9 of Circular 111/2013/TT-BTC, dependents include the following individuals:
- Children, including biological children, legally adopted children, stepchildren, children born out of wedlock, stepchildren of the spouse, and stepchildren of the husband or wife, specifically:
+ Children under 18 years old (calculated by month).
+ Children aged 18 or older with disabilities and unable to work.
+ Children currently studying in Vietnam or abroad at universities, colleges, vocational schools, including those in high school (including waiting for high school graduation exam results from June to September of grade 12) with no income or with average monthly income not exceeding 1 million VND from all sources.
- Spouse; biological father, biological mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; foster father, foster mother legally responsible for the taxpayer and meeting the following conditions:
Case 1: For individuals in working age, they must simultaneously meet the following conditions:
+ Disabled and unable to work (belonging to the regulated subjects of the law on persons with disabilities, individuals with diseases unable to work (such as AIDS, cancer, chronic kidney disease, etc.).
+ No income or average monthly income not exceeding 1 million VND from all sources.
Case 2: For individuals outside working age, they must have no income or average monthly income not exceeding 1 million VND from all sources.
- Other individuals without any means of support that the taxpayer is directly supporting include:
+ Siblings (brothers, sisters) of the taxpayer.
+ Grandparents; paternal grandparents, maternal grandparents; paternal uncle, maternal aunt, paternal uncle, maternal uncle, paternal aunt, maternal aunt of the taxpayer.
+ Nieces and nephews of the taxpayer, including children of siblings (brothers, sisters).
+ Other individuals under legal regulations whom the taxpayer directly supports.
Note: Other individuals without any means of support that the taxpayer is directly supporting must meet the following conditions to be eligible for deduction:
Case 1: For individuals in working age, they must simultaneously meet the following conditions:
+ Disabled and unable to work (belonging to the regulated subjects of the law on persons with disabilities, individuals with diseases unable to work (such as AIDS, cancer, chronic kidney disease, etc.).
+ No income or average monthly income not exceeding 1 million VND from all sources.
Case 2: For individuals outside working age, they must have no income or average monthly income not exceeding 1 million VND from all sources.
2.2. Conditions for Dependent Deductions
- The taxpayer is eligible for dependent deductions if they have registered for tax and obtained a tax identification number.
- Must have documentary evidence and registration of dependents.
Note: Taxpayers with income from salaries, wages from 9 million VND/month and below are not required to declare dependents.
3. Principles of Dependent Deductions
3.1. Dependent Deductions for Taxpayers Themselves
According to point c.1, clause c, Article 9 of Circular 111/2013/TT-BTC, the principles of dependent deductions for taxpayers themselves are as follows:
- Taxpayers with multiple sources of income from salaries, wages can choose to deduct for themselves at one location at one point in time (calculated by month).
- For foreigners who are individuals residing in Vietnam eligible for self-deductions from January or from the month of arrival in Vietnam in the case of individuals first arriving in Vietnam until the end of the labor contract and leaving Vietnam in the tax year (calculated by month).
- If in the tax year individuals have not deducted for themselves or deducted for themselves less than 12 months, they will be deducted for 12 months when conducting tax finalization.
3.2. Dependent Deductions
According to point c.2, clause c, Article 9 of Circular 111/2013/TT-BTC, the principles of dependent deductions include:
- Taxpayers are eligible for dependent deductions if they have registered for tax and obtained a tax identification number.
- When taxpayers register for dependent deductions, the tax authority will issue a tax identification number for dependents and temporarily calculate dependent deductions within the year from the date of registration.
- In case taxpayers have not deducted for dependents in the tax year, they will be able to deduct for dependents from the month when the obligation to support arises when taxpayers finalize their taxes and register for dependent deductions.
- Each dependent can only be deducted once for one taxpayer in the tax year. In case multiple taxpayers share a dependent whom they support, taxpayers must agree to register dependent deductions for one taxpayer.
When calculating personal income tax to be paid, in addition to the amount deducted for dependents, taxpayers are also entitled to deductions for insurance payments, voluntary retirement funds.
Above are the regulations on dependent deductions when calculating personal income tax and conditions for dependent deductions. In addition to being naturally entitled to deductions for themselves, individuals must meet the conditions and register dependents to be eligible for dependent deductions.
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