Vietnam: Do the dependant registration application for parents beyond working age include an income confirmation?

Vietnam: Do the dependant registration application for parents beyond working age include an income confirmation?

Pursuant to point d, point đ clause 1 Article 9 of Circular No. 111/2013/TT-BTC on dependants of personal income tax payers as follows:

Deductions

1. Personal deduction

...

d) dependants include:

d.1) Children: biological children, legally adopted children, illegitimate children, stepchildren of husband or wife, specifically including:

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

Example 10: Mr. H's child was born on July 25, 2014, then counted as a dependant from July 2014.

d.1.2) Children from 18 years old and above who are disabled and incapable of working.

d.1.3) Children studying in Vietnam or abroad at the university, college, secondary/vocational level, including children aged 18 years and above studying at high schools (including the waiting period for university examination results from June to September of grade 12) without income or whose average monthly income from all sources does not exceed 1,000,000 VND.

d.2) Spouses of taxpayers meeting the conditions at point đ, clause 1, of this Article.

d.3) Biological parents, in-laws (or mother-in-law, father-in-law), stepparents, legal adoptive parents of the taxpayer meeting the conditions at point đ, clause 1, of this Article.

d.4) Other individuals with no support and whom the taxpayer must directly nurture, meeting the conditions at point đ, clause 1, of this Article, including:

d.4.1) Siblings of the taxpayer.

d.4.2) Grandparents, uncles, aunts on both paternal and maternal sides of the taxpayer.

d.4.3) Nephews/nieces of the taxpayer including children of brothers, sisters.

d.4.4) Other dependants under legal regulations.

dd) Individuals considered dependants under the guidance at points d.2, d.3, d.4, point d, clause 1, of this Article must meet the following conditions:

dd.1) For individuals within working age, they must concurrently meet the following conditions:

dd.1.1) Being disabled and incapable of working.

dd.1.2) Having no income or monthly average income from all sources not exceeding 1,000,000 VND.

dd.2) For individuals beyond working age, they must have no income or monthly average income from all sources not exceeding 1,000,000 VND.

...

Simultaneously, pursuant to provision g.3 point g clause 1 Article 9 of Circular 111/2013/TT-BTC amended by Article 1 of Circular 79/2022/TT-BTC stipulating the proof documents for dependants being the parents of personal income taxpayers as follows:

Deductions

1. personal deduction

...

g) Proof documents for dependants

g.3) For biological parents, in-laws (or mother-in-law, father-in-law), stepparents, legal adoptive parents, the proof documents include:

- A copy of the Identification Card.

- Legal documents to determine the relationship of the dependant with the taxpayer such as a copy of the household registration (if sharing the same household), birth certificate, decision of recognition of parent-child relationship by the competent State authority.

In the case of individuals within working age, besides the aforementioned documents, the proof must include additional documents proving disability and incapability of working like a copy of the Disability Certification as prescribed by law regarding persons with disabilities or a copy of the medical records for individuals with incapabilities due to illness (such as AIDS, cancer, chronic kidney failure, etc.).

...

Thus, parents beyond the working age of a personal income taxpayer are identified as dependants if they meet the condition of having no income or having an average monthly income from all sources not exceeding 1,000,000 VND.

Furthermore, according to the regulations on proof documents for dependants, there is no requirement for income confirmation. Therefore, when a personal income taxpayer registers dependants who are parents beyond working age, they do not need to submit income confirmation of the parents.

Vietnam: Do the dependant registration application for parents beyond working age include an income confirmation? (Image from the Internet)

What is the personal exemption level for personal income taxpayers with dependants being biological parents in Vietnam?

Pursuant to Article 1 of Resolution 954/2020/UBTVQH14 stipulating the level of personal deduction as follows:

Personal exemption level

Adjusting the level of personal deduction prescribed at clause 1 Article 19 of the Personal Income Tax Law No. 04/2007/QH12 amended and supplemented by several articles according to Law No. 26/2012/QH13 as follows:

1. The deduction for the taxpayer is 11 million VND/month (132 million VND/year);

2. The deduction for each dependant is 4.4 million VND/month.

Accordingly, the personal exemption level for personal income taxpayers with dependants being biological parents is determined as follows:

- personal exemption for the taxpayer: 11 million VND/month

- personal exemption for dependants being biological parents: 8.8 million VND/month.

Vietnam: What does dependant registration application of a personal income taxpayer include?

Pursuant to sub-item 3 Section 3 of Official Dispatch 883/TCT-DNNCN 2022 from the General Department of Taxation guiding personal income tax finalization, in which the dependant registration application of a personal income taxpayer includes:

- For individuals submitting dependant registration documents directly at the tax agency:

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

+ dependant proof documentation as guided at point g Clause 1 Article 9 of Circular 111/2013/TT-BTC.

+ In case the dependant is directly nurtured by the taxpayer, confirmation from the commune/ward People's Committee where the dependant resides is required according to form No. 07/XN-NPT-TNCN issued with Annex 2 of Circular 80/2021/TT-BTC.

- In case individuals register personal deduction for dependants through organizations or individuals paying income, the individuals submit the dependant registration dossier as guided at point a sub-item 3 Section 3 of Official Dispatch 883/TCT-DNNCN 2022 to them. The organizations or individuals paying income compile and submit to the tax authority the synthesis table of dependant registration for personal exemption according to form No. 07/THDK-NPT-TNCN issued with Annex 2 of Circular 80/2021/TT-BTC.