Is a child studying abroad for university considered dependants in Vietnam?

Is a child studying abroad for university considered dependants in Vietnam?

Pursuant to point d.1.3, clause 1, Article 9 of Circular 111/2013/TT-BTC (amended by clause 6, Article 25 of Circular 92/2015/TT-BTC), the regulations regarding exemptions are as follows:

Exemptions

1. Personal exemptions

The deductions guided in this Article are amounts deducted from an individual's taxable income before determining taxable income from salaries, wages, or business. Specifically:

...

d.1.3) A child currently studying in Vietnam or abroad at the university, college, professional secondary school, vocational training level, including children 18 years and older studying at high school (including the period awaiting university exam results from June to September in grade 12) without income or with an average monthly income during the year from all sources not exceeding 1,000,000 VND.

...

Thus, a child studying at a university abroad with no income or having an average monthly income during the year from all sources not exceeding 1,000,000 VND is eligible for personal exemptions.

Is a child studying abroad for university considered dependants in Vietnam? (Image from the Internet)

Vietnam: What do the documents proving a child studying at a university as a dependant include?

According to the provision at point g, clause 1, Article 9 of Circular 111/2013/TT-BTC (amended by Article 1 of Circular 79/2022/TT-BTC), the documentation to prove dependants for specific objects is regulated as follows:

Exemptions

1. Personal exemptions

...

g) Documentation to prove dependants

g.1) For children:

g.1.1) Children under 18 years old: Documentation includes a copy of the Birth Certificate and a copy of the ID Card or Citizen Identity Card (if any).

g.1.2) Children aged 18 and over with disabilities and incapable of work, documentation includes:

g.1.2.1) A copy of the Birth Certificate and a copy of the ID Card or Citizen Identity Card (if any).

g.1.2.2) A copy of the Certificate of Disability as prescribed by law for persons with disabilities.

g.1.3) Children studying at educational levels as guided in section d.1.3, point d, clause 1, this Article, documentation includes:

g.1.3.1) A copy of the Birth Certificate.

g.1.3.2) A copy of the Student Card or a declaration confirmed by the school or other documents proving current studies at university, college, professional secondary school, high school, or vocational training.

g.1.4) In the case of adopted children, illegitimate children, or stepchildren, in addition to the documents for each case mentioned above, documentation should include additional papers proving the relationship, such as a copy of the decision recognizing child adoption, or the decision recognizing paternity, maternity, or child recognition by a competent authority.

g.2) For a spouse, documentation includes:

- A copy of the ID Card or Citizen Identity Card.

- A copy of the Certificate of residence information or Notice of personal identification number and information in the National Database on Population or other documents issued by the Police Department (proving the marital relationship) or a copy of the Marriage Certificate.

If the spouse is of working age, in addition to the above documents, documentation must include additional papers proving the dependant is incapable of work, such as a copy of the Certificate of Disability as prescribed by law for persons with disabilities incapable of work, or a copy of medical records for those suffering from diseases that render them incapable of work (such as AIDS, cancer, chronic kidney failure, etc.).

g.3) For biological parents, parents-in-law (or parents of a spouse), step-parents, or legal adoptive parents, documentation includes:

- A copy of the ID Card or Citizen Identity Card.

- Legal documents determining the dependant's relationship with the taxpayer, such as a copy of the Certificate of residence information or Notice of personal identification number and information in the National Database on Population or other documents issued by the Police Department, birth certificate, the decision recognizing paternity, maternity, or child recognition by a competent authority.

If they are of working age, in addition to the above documents, documentation must include papers proving they are disabled, incapable of work, such as a copy of the Certificate of Disability as prescribed by law for persons with disabilities incapable of work, or a copy of medical records for those suffering from diseases that render them incapable of work (such as AIDS, cancer, chronic kidney failure, etc.).

...

Thus, the documentation proving a child studying at a university abroad as a dependant includes:

- A copy of the Birth Certificate.

- A copy of the Student Card or a declaration confirmed by the school or other documents proving current studies at university, college, professional secondary school, high school, or vocational training.

What is the current personal exemption rate?

Based on Article 1 of Resolution 954/2020/UBTVQH14 stipulating the personal exemption rates as follows:

Personal exemption rate

Adjustment of personal exemption rate specified in clause 1, Article 19 of the Law on Personal Income Tax No. 04/2007/QH12 amended and supplemented by Law No. 26/2012/QH13 as follows:

1. The deduction rate for taxpayers is 11 million VND/month (132 million VND/year);

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

Thus, the current personal exemption rates are specified as follows:

- The personal exemption rate is 11 million VND/month (132 million VND/year) applicable to the taxpayer;

- The personal exemption rate is 4.4 million VND/month applicable to each dependant of the taxpayer.