At what age are parents considered dependants for personal exemptions in Vietnam?

At what age are parents considered dependants for personal exemptions in Vietnam?

Pursuant to subsection d.3, point d, clause 1, Article 9 of Circular 111/2013/TT-BTC, regulations on dependants of taxpayers liable for personal income tax are as follows:

Deductions

1. Family circumstances deduction

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d) dependants include:

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

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Simultaneously, pursuant to point đ, clause 1, Article 9 of Circular 111/2013/TT-BTC, regulation on conditions to be determined as dependants of the taxpayer in cases of biological father, biological mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legal adoptive father, adoptive mother are as follows:

Deductions

1. Family circumstances deduction

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dd) Individuals considered dependants as guided at subsections d.2, d.3, d.4, point d, clause 1, of this Article must meet the following conditions:

dd.1) For those of working age, they must simultaneously meet the following conditions:

dd.1.1) Being disabled and unable to work.

dd.1.2) Having no income or having an average monthly income in the year from all sources of income not exceeding 1,000,000 VND.

dd.2) For those beyond working age, they must have no income or have an average monthly income in the year from all sources of income not exceeding 1,000,000 VND.

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Furthermore, pursuant to clause 2, Article 169 of the Labor Code 2019, regulations on retirement age of employees are as follows:

Retirement age

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2. The retirement age of employees in normal working conditions shall be adjusted by a roadmap until reaching 62 years old for male employees by 2028 and 60 for female employees by 2035.

From 2021, the retirement age of employees in normal working conditions is 60 years and 3 months for male employees and 55 years and 4 months for female employees; thereafter, increasing each year by 3 months for male employees and 4 months for female employees.

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Thus, in 2024, a taxpayer can claim family circumstances deduction when dependants such as parents are of the following ages:

- Father is aged 61 and mother is aged 56 years and 4 months, given they have no income or have an average monthly income in the year from all sources of income not exceeding 1,000,000 VND.

- Father below 61 and mother below 56 years, 4 months, provided:

+ They are disabled and unable to work.

+ They have no income or have an average monthly income in the year from all sources of income not exceeding 1,000,000 VND.

At what age are parents considered dependants for personal exemptions in Vietnam? (Image from Internet)

What are documents proving that parents are dependants of the taxpayer in Vietnam?

Pursuant to subsection g.3, point g, clause 1, Article 9 of Circular 111/2013/TT-BTC as amended by Article 1 of Circular 79/2022/TT-BTC, regulations on documents proving dependants as parents of taxpayers are as follows:

- A copy of the citizen ID or identification card.

- Legal documents to verify the relationship of the dependant to the taxpayer, such as a copy of the residence information confirmation or Notice of personal identification number and information in the National Population Database or other documents issued by the Police Authority, birth certificate, decision acknowledging parental/child recognition by a competent State agency.

- For individuals within working age, apart from the above documents, proof of disability and inability to work is needed, such as:

+ A copy of the Disability Certificate as per laws on disabled individuals for those unable to work.

+ A copy of the medical records for individuals with diseases unable to work (e.g., AIDS, cancer, chronic kidney failure).

What are the locations and deadlines for submitting documents proving that parents are dependants in Vietnam?

Pursuant to subsection h.2.1.2, point h, clause 1, Article 9 of Circular 111/2013/TT-BTC, regulations on the location and deadlines for submitting documents proving dependants as parents of taxpayers are as follows:

- The location for submitting documents proving dependants is where the taxpayer submits the dependant registration form.

The income-paying organization is responsible for retaining proof of dependants and presenting it during tax inspections and audits.

- The deadline for submitting documents proving dependants: within three (03) months from the date of submitting the dependant registration declaration (including cases of changing dependant registration).

If missed, failure to submit documents proving dependants will result in the disallowance of tax deduction for dependants, necessitating adjustments to the payable tax amount.