Is it mandatory for a dependant to submit an Income Verification Certificate when determining personal exemption in Vietnam?

Vietnam: Who is considered a dependant if their income is below 01 million?

According to Point đ, Clause 1, Article 9 of Circular 111/2013/TT-BTC, the conditions for an individual to be considered a dependant are specified as follows:

Deductions

Deductions as instructed in this Article are amounts subtracted from an individual's taxable income before determining the taxable income from salaries, wages, and business activities. Specifically, as follows:

1. personal exemption

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

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đ) An individual is considered a dependant under the guidance at items d.2, d.3, d.4, point d, clause 1, of this Article must meet the following conditions:

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

đ.1.1) Disabled, unable to work.

đ.1.2) No income or an average monthly income for the year from all sources not exceeding 1,000,000 VND.

đ.2) For individuals outside working age, they must have no income or an average monthly income for the year from all sources not exceeding 1,000,000 VND.

e) Disabled, unable to work as instructed at item đ.1.1, point đ, clause 1, of this Article are individuals subject to legal adjustments regarding disabled persons, or those with diseases preventing work capability (such as AIDS, cancer, chronic kidney failure,...).

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Individuals with income below 01 million considered as dependants include:

- Spouse of the taxpayer

- Biological parents; parents-in-law (or parents-in-law); step-parents, legal adoptive parents of the taxpayer

- Other individuals without a place to lean on whom the taxpayer directly supports:

+ Siblings of the taxpayer.

+ Grandparents on both paternal and maternal sides; aunts, uncles of the taxpayer.

+ Nieces and nephews of the taxpayer, including children of the taxpayer's siblings.

+ Other individuals directly supported as per legal definition.

Is it mandatory for a dependant to submit an Income Verification Certificate when determining personal exemption in Vietnam? (Image from the Internet)

Is it mandatory for a dependant to submit an Income Verification Certificate when determining personal exemption in Vietnam?

Based on Point g, Clause 1, Article 9 of Circular 111/2013/TT-BTC (amended by Article 1 of Circular 79/2022/TT-BTC) regarding documentation to prove dependants, as follows:

Deductions

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

1. personal exemption

According to Article 19 of the Law on Personal Income Tax; Clause 4, Article 1 of the Law amending and supplementing several provisions of the Law on Personal Income Tax; Article 12 of Decree No. 65/2013/ND-CP, personal exemption are conducted as follows:

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g) Documentation to prove dependants

g.1) For children:

g.1.1) Children under 18: Documentation consists of a copy of the Birth Certificate and a copy of the ID Card or Citizen's ID (if available).

g.1.2) Children 18 or older who are disabled, unable to work, documentation includes:

g.1.2.1) A copy of the Birth Certificate and a copy of the ID Card or Citizen's ID (if available).

g.1.2.2) A copy of the Disability Certificate according to the legal regulations on disabled persons.

g.1.3) Children attending educational levels as instructed at item d.1.3, point d, clause 1, of 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 certification from the educational institution or other documents proving attendance at universities, colleges, vocational schools, high schools.

g.1.4) In cases of adopted children, illegitimate children, stepchildren, besides the mentioned documentation in each case, additional documents are needed to prove relationships, such as a copy of the Adoption Certification, certification of parental or child recognition by competent authorities...

g.2) For a spouse, the documentation includes:

- A copy of the ID Card or Citizen's ID.

- A copy of residency information confirmation or Personal identification number and information in the National Database on Population or other documents issued by Police Authorities (proving marital relationship) or a copy of the Marriage Certificate.

If the spouse is of working age, besides the documents mentioned above, additional documentation proving the dependant's inability to work is needed, such as a copy of the Disability Certificate according to the legal regulations for disabled persons who cannot work, a copy of medical records for those unable to work due to illness (such as AIDS, cancer, chronic kidney failure, etc.).

g.3) For biological parents, in-laws (or parents-in-law), step-parents, adoptive parents, proof includes:

- A copy of the ID Card or Citizen's ID.

- Legal documents verifying the relationship between the dependant and the taxpayer, such as a copy of residential information confirmation or Personal identification number and information in the National Database on Population or other documents issued by Police Authorities, birth certificates, certification of parental or child recognition by competent authorities.

In cases of individuals in working age, besides the documents mentioned above, additional documentation proving disability or inability to work is needed, such as a copy of the Disability Certificate for disabled persons unable to work, or medical records for those unable to work due to illness (like AIDS, cancer, chronic kidney failure, etc.).

g.4) For other individuals as instructed at item d.4, point d, clause 1, of this Article, the proof includes:

g.4.1) A copy of the ID Card, or Citizen's ID, or Birth Certificate.

g.4.2) Legal documents outlining the responsibility for support according to legal regulations.

In cases of working-age dependants, besides the mentioned documents, additional documentation proving inability to work is needed, such as a copy of the Disability Certificate for disabled persons unable to work, or medical records for those unable to work due to illness (like AIDS, cancer, chronic kidney failure, etc.).

Any legal documents at item g.4.2, point g, clause 1, of this Article are legal documents determining the relationship between the taxpayer and the dependant, such as:

- A copy of legal documents defining the responsibility for support according to legal regulations (if available).

- A copy of residency information confirmation or Personal identification number and information in the National Database on Population or other documents issued by Police Authorities.

- Taxpayer's self-declared form as per the template attached to Circular No. 80/2021/TT-BTC dated September 29, 2021, issued by the Minister of Finance guiding the implementation of some provisions of the Tax Management Law and Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing specific provisions of the Tax Management Law, confirmed by the local People's Committee where the taxpayer resides on the dependant living with them.

- Taxpayer's self-declared form as per the template attached to Circular No. 80/2021/TT-BTC dated September 29, 2021, issued by the Minister of Finance guiding the implementation of some provisions of the Tax Management Law and Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing specific provisions of the Tax Management Law, confirmed by the local People's Committee where the dependant resides on the dependant currently residing locally and not being supported by anyone (case not living together).

g.5) A dependant residing in Vietnam who is a foreigner, if lacking documentation for each specific case mentioned above, must have similar legal documents to serve as proof of dependency.

g.6) For taxpayers working within economic organizations, administrative agencies, units with parents, spouse, child, and other persons eligible to be dependants declared in the taxpayer's profile, dependency proof is carried out per guide in points g.1, g.2, g.3, g.4, g.5, section g, clause 1 of this Article or only requires the dependant registration form as attached to Circular No. 80/2021/TT-BTC dated September 29, 2021, issued by Minister of Finance directing some provisions of the Law on Tax Management and Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam detailing some articles of the Tax Management Law, with confirmation by the head of the unit on the left side of the declaration.

The head of the unit is only responsible for the following content: the dependant's name, birth year, and relationship with the taxpayer; other content the taxpayer declares themselves and is responsible for.

g.7) From the date the Tax Authority announces the completion of data connection with the National Database on Population, the taxpayer does not need to submit the documents proving dependency if the information in these documents already exists in the National Database on Population.

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Thus, currently, there is no regulation requiring an Income Verification Certificate under 01 million for dependants; in this case, it must be self-declared by the taxpayer.

What is the current personal exemption level in Vietnam?

The personal exemption for 2025 is implemented according to Resolution 954/2020/UBTVQH14, as follows:

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

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