Are parents-in-law considered dependants for personal exemption in Vietnam?

Are parents-in-law considered dependants for personal exemption in Vietnam?

Based on the provisions at point d, clause 1, Article 9 of Circular 111/2013/TT-BTC (Parts relating to personal income tax on individuals in business in this Article are abolished by clause 6, Article 25 of Circular 92/2015/TT-BTC), which stipulates deductions for family circumstances as follows:

Deductible Amounts

Deductions as guided in this Article are amounts subtracted from the taxable income of individuals before determining the taxable income from wages, salaries, and business. Specifically, as follows:

1. Family Circumstances Deduction

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d) dependants include:

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d.3) Biological father, biological mother; parents-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legal adoptive father, legal adoptive mother of the taxpayer who meet the conditions at point e, clause 1, this Article.

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e) Individuals considered dependants under the guidance at items d.2, d.3, d.4, point d, clause 1 of this Article must meet the following conditions:

e.1) For individuals of working age, they must concurrently meet the following conditions:

e.1.1) Disabled, incapable of working.

e.1.2) No income or average monthly income from all sources not exceeding 1,000,000 VND.

e.2) For individuals not of working age, they must have no income or average monthly income from all sources not exceeding 1,000,000 VND.

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Thus, parents-in-law are considered dependants for personal exemption when they meet the following conditions:

* For individuals of working age, they must concurrently meet the following conditions:

- Disabled, incapable of working.

- No income or average monthly income from all sources not exceeding 1,000,000 VND.

* For individuals not of working age, they must have no income or average monthly income from all sources not exceeding 1,000,000 VND.

Are parents-in-law considered dependants for personal exemption in Vietnam? (Image from Internet)

Vietnam: What does the document proving dependants for personal exemption for parents-in-law include?

The document evidencing dependants for personal exemption for parents-in-law is stipulated at item g.3, point g, clause 1, Article 9 of Circular 111/2013/TT-BTC, amended by Article 1 of Circular 79/2022/TT-BTC as follows:

- Photocopy of an ID card or citizen ID card.

- Legal documents determining the relationship of the dependant with the taxpayer such as a photocopy of the Certificate of Information on Residence or the Notice of Personal Identification Number and information in the National Population Database, or other documents issued by the Police Authority, birth certificate, decision recognizing the parent-child relationship by the competent State authority.

In the case of working-age individuals, in addition to the above-mentioned documents, the evidence must include supporting documents proving the individual is disabled and incapable of working, such as a photocopy of the Disability Certificate according to the law on persons with disabilities, medical records for individuals with illnesses incapable of working (such as AIDS, cancer, chronic kidney failure, etc.).

Can Both Spouses Register the Same dependant for personal exemption?

According to the provisions at item c.2, point c, clause 1, Article 9 of Circular 111/2013/TT-BTC (Parts relating to personal income tax on individuals in business in this Article are abolished by clause 6, Article 25 of Circular 92/2015/TT-BTC), as follows:

Deductible Amounts

Deductions as guided in this Article are amounts subtracted from the taxable income of individuals before determining the taxable income from wages, salaries, and business. Specifically, as follows:

1. Family Circumstances Deduction

According to the provisions of Article 19 of the Personal Income Tax Law; clause 4, Article 1 of the Law amending and supplementing some articles of the Personal Income Tax Law; Article 12 of Decree No. 65/2013/ND-CP, family circumstance deductions are implemented as follows:

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c) Principles of family circumstance deduction calculation

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c.2) Family circumstance deductions for dependants

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c.2.4) Each dependant is only counted for deduction once in a year for one taxpayer. In case multiple taxpayers share a dependant, they must agree among themselves to register the family circumstance deduction for one taxpayer.

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Based on the regulation that each dependant is only deducted once for one taxpayer in a tax year.

Therefore, if both spouses share one dependant, they must discuss and agree on who will register that dependant for the family circumstance deduction.