May children over 18 be considered dependants when calculating personal income tax in Vietnam?

What is the current personal exemption rate in Vietnam?

Based on the provisions stipulated in Article 19 of the 2007 Personal Income Tax Law, amended by Clause 4, Article 1 of the 2012 Amended Personal Income Tax Law, Article 1 of Resolution 954/2020/UBTVQH14 (Provisions related to tax determination for business individuals in Clause 1 of this Article are repealed by Clause 4, Article 6 of the 2014 Law Amending Various Tax Laws), the personal exemption is the amount deducted from taxable income before calculating tax on income from business, salary, and wages for resident taxpayers.

The personal exemption includes:

- A deduction of 11 million VND/month (132 million VND/year) applicable to the taxpayer themselves;

- A deduction of 4.4 million VND/month applicable for each dependent of the taxpayer.

May children over 18 be considered dependants when calculating personal income tax in Vietnam?

According to the provisions stated in point d, clause 1, Article 9 of Circular 111/2013/TT-BTC (Provisions related to personal income tax for business individuals in this Article are repealed by clause 6, Article 25 of Circular 92/2015/TT-BTC), the personal exemption is defined as follows:

Deduction Amounts

Deductions guided in this Article are amounts deducted from the individual’s taxable income before determining the taxable income from salary, wages, and business. Specifically:

1. Personal exemption

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d) Dependents include:

d.1) Children: biological children, legally adopted children, children out of wedlock, stepchildren of the wife, stepchildren of the husband, specifically including:

d.1.1) Children under 18 years old (calculated by full months).

Example 10: Mr. H's child is born on July 25, 2014, and is considered a dependent from July 2014.

d.1.2) Children 18 years old or older with disabilities, unable to work.

d.1.3) Children studying in Vietnam or abroad at university, college, professional secondary school, vocational training, including children 18 years or older attending high school (including the waiting period for university exam results from June to September of grade 12) without income or with an average monthly income from all sources not exceeding 1,000,000 VND.

d.2) The taxpayer's spouse meeting the condition at point đ, clause 1 of this Article.

d.3) Biological parents; parents-in-law (or spouse's parents); stepparents; legally adoptive parents of the taxpayer meeting the condition at point đ, clause 1 of this Article.

d.4) Other individuals without dependents that the taxpayer must directly support and meet the condition at point đ, clause 1 of this Article, including:

d.4.1) Siblings of the taxpayer.

d.4.2) Paternal grandparents; maternal grandparents; aunts, uncles, uncles, aunts, of the taxpayer.

d.4.3) Nieces or nephews of the taxpayer include: children of siblings.

d.4.4) Other individuals that must be directly supported as prescribed by law.

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Thus, children over 18 can still be included in the personal exemption when filing personal income tax if they fall into the categories below:

- Children 18 years old or older with disabilities, unable to work.

- Children studying in Vietnam or abroad at university, college, professional secondary school, vocational training, including children 18 years or older attending high school (including the waiting period for university exam results from June to September of grade 12) without income or with an average monthly income from all sources not exceeding 1,000,000 VND.

What documents are required for applying for personal exemptions for children over 18 in Vietnam?

Based on the provisions in point g, clause 1, Article 9 of Circular 111/2013/TT-BTC, amended by Article 1 of Circular 79/2022/TT-BTC regarding documentation for proving dependents to apply for personal exemptions when filing personal income tax as follows:

[1] Children over 18 with disabilities, unable to work

Documentation includes:

+ A photocopy of the Birth Certificate and a photocopy of the Identity Card or Citizen Identification (if available).

+ A photocopy of the Disability Certificate according to the law on persons with disabilities.

[2] Children studying in Vietnam or abroad at university, college, professional secondary school, vocational training, including children 18 years or older attending high school (including the waiting period for university exam results from June to September of grade 12) without income or with an average monthly income from all sources not exceeding 1,000,000 VND.

Documentation includes:

+ A photocopy of the Birth Certificate.

+ A photocopy of the Student Card or a verification letter from the educational institution or other documents proving enrollment at universities, colleges, professional secondary schools, high schools, or vocational training.

Note: In cases of adopted children, children out of wedlock, or stepchildren, besides the documents required for each specific case mentioned above, additional documentation is needed to prove the relationship, such as a photocopy of the decision recognizing the adoption, the decision recognizing the parent-child relationship by a competent governmental authority, etc.