Shall personal exemption be calculated from the time of caring or registration in Vietnam?

Shall personal exemption be calculated from the time of caring or registration in Vietnam?

Based on the regulations specified at point c, clause 1, Article 9 of Circular 111/2013/TT-BTC, related to the principles for calculating personal exemption:

- Taxpayers are eligible for personal exemptions if they have taxpayer registration and have been assigned a tax code.

- When taxpayers register for personal exemptions, the tax authority issues a tax code for the dependant and the deduction is temporarily calculated from the year of registration. For dependents registered for deductions before this Circular's effective date, the deduction continues until a tax code is provided.

- If taxpayers do not account for personal exemptions within the tax year, they are allowed to deduct from the month in which the obligation to care arises upon tax settlement and registration for the dependent deduction.

For other dependents guided by sub-section d.4, point d, clause 1, Article 9 of Circular 111/2013/TT-BT, the deadline for personal exemption registrations is December 31 of the tax year, exceeding this limit results in no deductions for that tax year.

- Each dependent is eligible for deduction only once to one taxpayer in the tax year. If multiple taxpayers support the same dependent, they must agree on who registers for the deduction.

Therefore, the timing for calculating personal exemptions will be determined as follows:

- During the year, register the dependent from any point to be eligible for deductions from that time.

- Upon tax settlement, deductions will be considered from the time the obligation to care for the dependent arises.

Shall personal exemption be calculated from the time of caring or registration in Vietnam? (Image from the Internet)

When is the deadline for personal exemption registration in Vietnam?

If taxpayers do not account for personal exemptions within the tax year, they are allowed to deduct from the month in which the obligation to care arises upon tax settlement and registration for the dependent deduction.

For other dependents guided by sub-section d.4, point d, clause 1, Article 9 of Circular 111/2013/TT-BT, the deadline for personal exemption registrations is by December 31 of the tax year, failing which results in no deductions for that tax year.

Additionally, under clause 2, Article 44 of the Tax Administration Law 2019, the deadline for submitting tax declaration dossiers for yearly tax periods is regulated as follows:

Tax Declaration Submission Deadline

...

2. The deadline for submitting tax declaration dossiers for taxes calculated on an annual period is as follows:

a) No later than the last day of the third month from the end of the calendar year or financial year for the annual tax settlement dossier; no later than the last day of the first month of the calendar year or financial year for the annual tax declaration dossier;

b) No later than the last day of the fourth month from the end of the calendar year for the personal income tax settlement dossier of individuals settling tax directly;

c) No later than December 15 of the preceding year for presumptive tax declarations by business households, individual businesses paying tax using the presumptive method; in cases of new businesses, no later than 10 days from the start of business activities for presumptive tax declarations.

Therefore, the deadline for personal exemption registrations will be as follows:

- No later than 10 working days before March 31 of the subsequent tax year (for cases of authorization to the income-paying agency for taxpayer registration for the dependent).

- No later than 10 working days before April 30 of the subsequent tax year (for cases where taxpayers directly register dependents).

What is the personal exemption level  in Vietnam for 2024?

According to Article 19 of the Personal Income Tax Law 2007, amended by clause 4, Article 1 of the Amended Personal Income Tax Law 2012, and Article 1 of Resolution 954/2020/UBTVQH14, the deduction amount for each dependent is 4.4 million VND/month.