How to determine the time for registering a dependant deduction in Vietnam? Is personal exemption a deductible amount from personal income tax in Vietnam?

Is personal exemption a deductible amount from personal income tax in Vietnam?

Based on the provisions stipulated in Clause 1, Article 9 of Circular 111/2013/TT-BTC, as amended in Clause 6, Article 25 of Circular 92/2015/TT-BTC, as follows:

The personal exemption is an allowance deducted from the taxable income of an individual before determining the taxable income from salary or wages.

Therefore, the personal exemption is deductible from personal income tax.

What are the latest 2024 regulations on personal exemption in Vietnam?

According to Resolution 954/2020/UBTVQH14, the latest personal exemption is as follows:

- The deduction for taxpayers is VND 11 million/month (VND 132 million/year);

- The deduction for each dependant is VND 4.4 million/month.

personal exemptions include: the taxpayer's own deduction and the deduction for dependants.

How to determine the time for registering a dependant deduction in Vietnam? Is personal exemption a deductible amount from personal income tax in Vietnam? (Image from the Internet)

How to determine the time for registering a dependant deduction in Vietnam?

Based on item c.2, point c, clause 1, Article 9 of Circular 111/2013/TT-BTC, as amended by clause 6, Article 25 of Circular 92/2015/TT-BTC, it is regulated as follows:

Deductions

The deductions guided by this Article are amounts deducted from the taxable income of an individual before determining taxable income from salary, wages, and business. Specifically as follows:

1. personal exemptions

According to the provisions at Article 19 of the Personal Income Tax Law; Clause 4, Article 1 of the Law amending and supplementing certain articles of the Personal Income Tax Law; Article 12 of Decree No. 65/2013/ND-CP, the personal exemption is implemented as follows:

c) Principles for calculating the personal exemption

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c.2) personal exemption for dependants

c.2.1) The taxpayer is entitled to a personal exemption for dependants if the taxpayer has taxpayer registration and is issued a tax code.

c.2.2) When the taxpayer registers a personal exemption for dependants, the tax authority will issue a tax code for the dependants and temporarily calculate the personal exemption for the year from the date of registration. For dependants already registered for personal exemption before this Circular is effective, the deduction will continue until a tax code is issued.

c.2.3) In the case where the taxpayer has not calculated the personal exemption for dependants in the tax year, they may calculate the deduction for dependants from the month when the obligation to provide support arises when finalizing tax payments and registering the deduction for dependants. Specifically, for other dependants as guided at item d.4, point d, clause 1, Article, the latest time to register for the deduction is December 31 of the tax year, beyond which the deduction for that tax year will not be applied.

c.2.4) Each dependant can only be included in one taxpayer's deduction in the tax year. If multiple taxpayers share a dependant to support, they must agree to register the deduction for one taxpayer.

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d) dependants include:

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d.4) Other individuals without a source of support whom the taxpayer directly supports and who meet the conditions at point đ, clause 1, Article, including:

d.4.1) The taxpayer's biological siblings.

d.4.2) The taxpayer's paternal grandparents, maternal grandparents, uncles, aunts, uncles by marriage.

d.4.3) The taxpayer's nieces and nephews, including children of biological siblings.

d.4.4) Other individuals required to be directly supported according to law.

dd) Individuals considered dependants as guided in items d.2, d.3, d.4, point d, clause 1, Article must meet the following conditions:

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

dd.1.1) Incapable of working due to disability.

dd.1.2) Have no income or an average monthly income from all sources not exceeding VND 1,000,000.

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

e) Individuals with disabilities, incapable of working as guided at item dd.1.1, point dd, clause 1, Article are those subject to regulation on persons with disabilities, persons with diseases incapable of working (such as AIDS, cancer, chronic kidney failure,...).

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Therefore, the time for registering a dependant deduction is as follows:

- No later than March 31 of the year following the tax year (for cases where authorization is given to the income payer for taxpayer registration for dependants).

- No later than April 30 of the year following the tax year (for cases where taxpayers register directly for dependants).

(If the last day of the deadline coincides with a holiday, as regulated, it will be counted as the following working day of that holiday).