Vietnam: Is the TIN issued to the dependant is his/her personal TIN?

Vietnam: Is the TIN issued to the dependant is his/her personal TIN?

According to the provision at point b, clause 3, Article 30 of the Law on Tax Administration 2019, the regulation is as follows:

Entities for taxpayer registration and TIN issuance

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3. The issuance of TINs is regulated as follows:

a) Enterprises, economic organizations, and other organizations are issued a unique TIN to use throughout their operation from taxpayer registration until the TIN becomes invalid. Taxpayers with branches, representative offices, or dependant units directly fulfilling tax obligations are issued dependant TINs. In cases where enterprises, organizations, branches, representative offices, or dependant units register for taxpayer registration through a one-stop-shop mechanism alongside business registration, cooperative registration, or business operation registration, the number on the certificate of business registration, cooperative registration, or business operation registration is also the TIN;

b) Individuals are issued a unique TIN to use throughout their entire life. dependants of the individual are issued a TIN to deduct family circumstances for personal income taxpayers. The TIN issued to the dependant is also the personal TIN for the dependant when tax obligations to the state budget arise;

c) Enterprises, organizations, and individuals responsible for tax withholding and payment on behalf are issued a TIN for withholding to declare and pay taxes on behalf of the taxpayers;

d) Issued TINs cannot be reused for other taxpayers;

đ) The TIN of enterprises, economic organizations, and other organizations remains the same after conversions, sales, donations, or inheritances;

e) TINs issued to households, household businesses, and individual businesses are the TINs issued to the representatives of the household, household businesses, and individual businesses.

According to the above regulation, when dependants arise tax obligations to the state budget, the TIN issued to the dependant is also their personal TIN.

Vietnam: Is the TIN issued to the dependant is his/her personal TIN? (Image from the Internet)

Who are considered dependants in Vietnam?

Based on point d, clause 1, Article 9 of the Circular 111/2013/TT-BTC, dependants include:

(1) Children: Biological children, legally adopted children, illegitimate children, stepchildren of the wife, stepchildren of the husband.

- Children under 18 years old (by full month calculation).

- Children 18 years old or older who are disabled and unable to work.

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

(2) Spouse of the taxpayer.

- For individuals within working age, the following conditions must be met:

+ Disabled and unable to work.

+ Without income or with an average monthly income from all sources not exceeding 1 million VND.

- For individuals beyond working age, they must have no income or an average monthly income from all sources not exceeding 1 million VND.

(3) Biological parents; in-laws (father and mother-in-law or father and mother-in-law); stepparents; legally adoptive parents.

- For individuals within working age, the following conditions must be met:

+ Disabled and unable to work.

+ Without income or with an average monthly income from all sources not exceeding 1 million VND.

- For individuals beyond working age, they must have no income or an average monthly income from all sources not exceeding 1 million VND.

(4) Other individuals including:

- Siblings of the taxpayer.

- Grandparents; uncles, aunts, cousins of the taxpayer.

- Nephews and nieces of the taxpayer including children of siblings.

- Individuals the taxpayer must directly support according to the law.

These individuals must be those without shelter whom the taxpayer is directly supporting and must meet the following conditions:

+ For individuals within working age, the following conditions must be met:

++ Disabled and unable to work.

++ Without income or with an average monthly income from all sources not exceeding 1 million VND.

+ For individuals beyond working age, they must have no income or an average monthly income from all sources not exceeding 1 million VND.

What is the current level of personal exemption in Vietnam?

Based on Article 1 of the Resolution 954/2020/UBTVQH14, the regulations are as follows:

Personal exemption levels

Adjust the personal exemption levels stipulated in clause 1, Article 19 of the Law on Personal Income Tax No. 04/2007/QH12, as amended and supplemented by 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.

Thus, the current personal exemption levels are as follows:

- For the taxpayer: 11 million VND/month (132 million VND/year);

- For each dependant: 4.4 million VND/month.