Vietnam: Can dependant registration in 2025 be used to calculate personal deductions for PIT in 2024?

Vietnam: Can dependant registration in 2025 be used to calculate personal deductions for PIT in 2024?

Based on subparagraph c.2.3, point c, clause 1, Article 9 of Circular 111/2013/TT-BTC which stipulates the principles for calculating personal exemption as follows:

Deductible Amounts

1. Family Circumstance Deduction

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c) Principles for calculating family circumstance deduction

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c.2.3) In cases where taxpayers have not calculated the family circumstance deduction for dependants in the taxable year, they can calculate the deduction for dependants from the month the obligation of support arises when they finalize the tax and register for the deduction for dependants. Specifically, for other dependants as guided in subparagraph d.4, point d, clause 1, of this Article, the deadline for registering for the family circumstance deduction is no later than December 31 of the taxable year. Past this deadline, the deduction for that taxable year is not applicable.

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Therefore, in 2025, PIT taxpayers can still register dependants to calculate personal exemption for PIT in 2024 when finalizing PIT in 2025 and registering for the dependant deduction.

The deduction amount for dependants will be calculated from the month when the obligation for support arises in the year 2024.

Vietnam: Can dependant registration in 2025 be used to calculate personal deductions for PIT in 2024? (Image from the Internet)

What should PIT taxpayers prepare for registering dependants for personal exemption in Vietnam?

According to subsection 3 Section 3 of Official Dispatch 883/TCT-DNNCN of 2022 from the General Department of Taxation guiding on PIT finalization, PIT taxpayers registering dependants for personal exemption need to prepare the following documents:

- For individuals submitting dependant registration forms directly at the tax authority:

+ dependant registration form according to form No. 07/DK-NPT-TNCN issued under Annex 2 of Circular 80/2021/TT-BTC.

+ Documents proving the dependants, as guided at point g clause 1 Article 9 of Circular 111/2013/TT-BTC.

+ In cases where the dependant is directly supported by the taxpayer, a confirmation from the local People's Committee where the dependant resides is required, using form No. 07/XN-NPT-TNCN issued under Annex 2 of Circular 80/2021/TT-BTC.

- For individuals registering for personal exemption for dependants through an income-paying organization or individual, submit the dependant registration dossier as guided in point a of subsection 3 Section 3 of Official Dispatch 883/TCT-DNNCN of 2022 to the income-paying organization or individual. The organization or individual consolidates all dependant registrations into the Summary Table of dependants for personal exemption form No. 07/THDK-NPT-TNCN issued under Annex 2 of Circular 80/2021/TT-BTC and submits it to the tax authority as required.

What is the deadline for PIT finalization in Vietnam in 2025?

Based on clause 2 Article 44 of the Tax Administration Law 2019 stipulating the deadline for submitting tax returns for taxes with an annual taxable period as follows:

Tax Return Submission Deadlines

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2. The deadline for submitting tax returns for taxes with an annual taxable period is specified as follows:

a) No later than the last day of the third month from the end of the calendar year or fiscal year for annual tax finalization returns; no later than the last day of the first month of the calendar year or fiscal year for annual tax declaration returns;

b) No later than the last day of the fourth month from the end of the calendar year for personal income tax finalization returns submitted by individuals directly finalizing tax;

c) No later than December 15 of the preceding year for extraordinary tax returns by business households and individuals paying tax by the presumptive method; in cases of newly commenced business, the tax return submission deadline is 10 days from the start of business.

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Simultaneously, based on the regulations in clause 5 Article 148 of the Civil Code 2015 on the end of time periods:

End of Time Periods

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5. When the last day of a time period falls on a weekend or holiday, the period ends at the close of the next working day following the weekend or holiday.

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Thus, the deadline for finalizing personal income tax in 2025 for taxable income in 2024 is determined as follows:

- No later than March 31, 2025, for individuals authorizing PIT finalization through income-paying organizations or individuals.

- No later than May 2, 2025, for individuals directly finalizing the tax. (As the last day of the fourth month from the end of the calendar year 2024 is April 30, 2025 (Reunification Day), which is followed by the successive holiday of May 1, 2024 (International Labor Day)).