What are conditions for calculating personal exemptions for dependants in Vietnam in 2025?

What are conditions for calculating personal exemptions for dependants in Vietnam in 2025?

The conditions for calculating personal exemptions for dependants in 2025 are determined according to point đ, clause 1, Article 9 of Circular 111/2013/TT-BTC (Contents related to personal income tax for business individuals in this article are abolished by clause 6, Article 25 of Circular 92/2015/TT-BTC) as follows:

[1] Children: biological children, legally adopted children, illegitimate children, stepchildren of spouses, specifically including:

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

- Children 18 years old or older who are disabled and incapable of working.

- Children attending school in Vietnam or abroad at the university, college, vocational school level, including children 18 years old or older attending high school (including the time waiting for university entrance exam results from June to September of the 12th grade) with no income or with average monthly income from all sources not exceeding 1,000,000 VND.

[2] The spouse of the taxpayer must meet the conditions (*) in the following cases:

Case 01: For individuals of working age, they must satisfy the following conditions simultaneously:

+ Being disabled, incapable of working (those subject to the regulation of the law on disabled persons, those suffering from diseases without the working capacity such as AIDS, cancer, chronic kidney failure, etc.).

+ Having no income or having average monthly income from all sources not exceeding 1,000,000 VND.

Case 02: For individuals beyond working age, they must have no income or average monthly income from all sources not exceeding 1,000,000 VND.

[3] Biological father, biological mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; lawful adoptive father, adoptive mother of the taxpayer must meet the conditions in item (*).

[4] Other individuals without a support provider whom the taxpayer is directly nurturing and must meet the conditions in item (*) include:

- Siblings of the taxpayer.

- Grandparents, aunts, uncles, and parental siblings of the taxpayer.

- Nephews/nieces of the taxpayer, including children of siblings.

- Other individuals who must be directly nurtured according to legal regulations.

What are conditions for calculating personal exemptions for dependants in Vietnam in 2025? (Image from Internet)

What is the personal exemptions for dependants in Vietnam in 2025?

The personal exemptions for 2025 are determined according to Article 1 of Resolution 954/2020/UBTVQH14 as follows:

Personal exemptions

Adjust the personal exemptions stipulated in clause 1, Article 19 of the Personal Income Tax Law No. 04/2007/QH12, amended and supplemented by Law No. 26/2012/QH13, as follows:

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

2. Deduction level for each dependant is 4.4 million VND/month.

Thus, the personal exemptions for each dependant in 2025 is 4.4 million VND/month.

What are the rules for calculating personal exemptions for dependants in Vietnam?

The rules for calculating personal exemptions for taxpayers are determined according to sub-item c.2, point c, clause 1, Article 9 of Circular 111/2013/TT-BTC (Contents related to personal income tax for business individuals in this article are abolished by clause 6, Article 25 of Circular 92/2015/TT-BTC) as follows:

- Taxpayers are eligible for personal exemptions for dependants if they have taxpayer registration and have been issued a tax identification number.

- When taxpayers register personal exemptions for dependants, the tax authority shall issue a tax identification number for the dependants, allowing temporary deduction calculations for the year from the date of registration. For dependants registered for deductions before October 01, 2013, the deductions will continue until the tax identification number is issued.

- If the taxpayer has not calculated personal exemptions for dependants during the tax year, they are allowed to calculate deductions for dependants from the month in which the obligation to nurture arises upon finalizing taxes and registering deductions for dependants.

Specifically, for other dependants as guided in sub-item d.4, point d, clause 1, Article 9 of Circular 111/2013/TT-BTC, the deadline for registering personal exemptions is no later than December 31 of the tax year, and any registration beyond this date will not be considered for deduction in that tax year.

- Each dependant can only be deducted once by one taxpayer in a tax year. If multiple taxpayers share the obligation to nurture a common dependant, they must mutually agree to register for the personal exemption under one taxpayer.