Shall the TIN of dependant be changed to a personal TIN in Vietnam?
Shall the TIN of dependant be changed to a personal TIN in Vietnam?
Pursuant to Clause 3, Article 30 of the Law on Tax Administration 2019 stipulating taxpayer registration and issuance of TINs as follows:
Subjects of taxpayer registration and issuance of TINs
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3. The issuance of TINs is stipulated as follows:
a) Enterprises, economic organizations, and other organizations are issued a unique TIN to be used throughout their period of operation from taxpayer registration until the cessation of the TIN's validity. Taxpayers with branches, representative offices, or dependant units directly performing tax obligations are issued dependant TINs. In cases where enterprises, organizations, branches, representative offices, or dependant units register for taxpayer registration through an interconnected single-window mechanism along with business registration, cooperative registration, or business registration, the number recorded on the business registration certificate, cooperative registration certificate, or business registration certificate is also the TIN;
b) Individuals are issued a unique TIN to be used throughout their lifetime. dependants of individuals are issued a TIN to reduce family circumstances for personal income taxpayer. The TIN issued to dependants is also the individual TIN when the dependant incurs obligations with the state budget;
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It can be seen that the dependant's TIN is also the individual's TIN. When a dependant incurs tax obligations, the dependant's TIN simultaneously serves as the individual's TIN used for declaring and paying taxes as required.
Thus, when a dependant incurs income subject to personal income tax, the dependant's TIN will be automatically converted into an individual's TIN by the tax authority without the need for conversion procedures.
In cases where the tax authority determines that a dependant has incurred tax obligations, the tax authority will convert the dependant's TIN into an individual's TIN. This conversion is carried out automatically, without requiring the dependant or taxpayer to undertake any conversion procedures.
Therefore, it can be affirmed that there is no need to carry out procedures to transfer the dependant's TIN to the personal TIN.
Shall the TIN of dependant be changed to a personal TIN in Vietnam? (Image from the Internet)
What is the latest personal exemption rate for dependants in Vietnam?
Based on the provisions of Article 1 of Resolution 954/2020/UBTVQH14 that stipulate the adjustment of personal exemptions effective from July 1, 2021, as follows:
Personal exemption
Adjustment of the personal exemption 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 level for the taxpayer is 11 million VND/month (132 million VND/year);
2. The deduction level for each dependant is 4.4 million VND/month.
The deduction for taxpayers is 11 million VND/month (132 million VND/year), and the deduction for each dependant is 4.4 million VND/month.
Who is considered a dependant in Vietnam?
According to the provisions at Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC, dependants include the following entities:
Children: Biological children, legally adopted children, children born out of wedlock, stepchildren of a wife, or stepchildren of a husband.
- Children under 18 years old (calculated by month).
- Children aged 18 and above who are disabled and unable to work.
- Children studying in Vietnam or abroad at the university, college, vocational secondary, vocational training levels, including children aged 18 and above attending high school (including the time waiting for university entrance results from June to September of 12th grade) with no income or with an average monthly income from all sources not exceeding 1 million VND.
Spouse of the taxpayer.
- For individuals of working age, they must meet the following conditions concurrently:
+ Disabled and unable to work.
+ No income or with an average monthly income from all sources in the year not exceeding 1 million VND.
- For individuals beyond working age, they must have no income or an average monthly income from all sources in the year not exceeding 1 million VND.
Biological father, mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legal adoptive father, adoptive mother.
- For individuals of working age, they must meet the following conditions concurrently:
+ Disabled and unable to work.
+ No income or with an average monthly income from all sources in the year not exceeding 1 million VND.
- For individuals beyond working age, they must have no income or an average monthly income from all sources in the year not exceeding 1 million VND.
Other individuals include:
- Siblings of the taxpayer.
- Paternal grandparents; maternal grandparents; aunts, uncles, uncles of the taxpayer.
- The taxpayer's nieces or nephews, including children of siblings.
- Other individuals who are directly fostered according to the law.
These other individuals must be homeless and directly fostered by the taxpayer, meeting the conditions at point e, Clause 1, Article 9 of Circular 111/2013/TT-BTC.
