What are guidelines for first-time taxpayer registration for dependants declared directly at the tax authority in Vietnam?

Who is considered a dependant for personal exemptions in Vietnam?

Pursuant to the provisions at point d, clause 1, Article 9 of Circular 111/2013/TT-BTC (Relevant contents related to personal income tax for individual businesses in this Article are abolished by clause 6, Article 25 of Circular 92/2015/TT-BTC) regarding dependants for the reduction of the taxpayer's personal income tax as follows:

(1) Children: biological children, legal adopted children, illegitimate children, stepchildren of the wife, and stepchildren of the husband, specifically including:

- Children under 18 years of age (calculated by month).

- Children aged 18 or older with disabilities, unable to work.

- Children attending school in Vietnam or abroad at university, college, professional secondary, vocational training levels, including children aged 18 or older attending high school (including during the period of awaiting university exam results from June to September of grade 12) without income or with an average monthly income in the year from all income sources not exceeding 1,000,000 VND.

(2) The spouse of the taxpayer meeting the conditions at point d, clause 1, Article 9 of Circular 111/2013/TT-BTC.

(3) Biological father, biological mother; father-in-law, mother-in-law (or father of the husband, mother of the husband); stepfather, stepmother; legal adoptive father, legal adoptive mother of the taxpayer meeting the conditions at point d, clause 1, Article 9 of Circular 111/2013/TT-BTC.

(4) Other individuals without a place of refuge whom the taxpayer must directly support and who meet the conditions at point d, clause 1, Article 9 of Circular 111/2013/TT-BTC.

- Siblings of the taxpayer.

- Grandparents (paternal, maternal); aunts, uncles, nephews, and nieces of the taxpayer.

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

- Other individuals directly nurtured as per legal regulations.

What are guidelines for first-time taxpayer registration for dependants declared directly at the tax authority in Vietnam? (Image from the Internet)

What are guidelines for first-time taxpayer registration for dependants declared directly at the tax authority in Vietnam?

Based on the provisions in sub-item 17, Section 1, Part 2 of the Procedures issued with Decision 2589/QD-BTC in 2021 regarding the procedure for the first-time taxpayer registration for dependants for the reduction of personal income tax - Individuals subject to personal income tax must submit a taxpayer registration dossier for their dependants directly at the tax authority as follows:

Step 01: The individual prepares a taxpayer registration dossier for dependants to reduce family circumstances and sends it to the directly managing tax authority;

The deadline for submitting taxpayer registration dossiers for dependants to reduce family circumstances is along with the deadline for applying the procedure for personal exemptions as per personal income tax law.

- For electronic taxpayer registration dossiers: The taxpayer (NNT) accesses the electronic portal they choose (General Department of Taxation’s electronic portal/The electronic portal of a competent state agency including the National Public Service Portal, ministry or provincial public service portals in compliance with the one-stop shop mechanism in administrative procedures and connected with the Tax Department’s electronic portal/Service-provider T-VAN) to complete the declarations and submit accompanying electronic dossiers (if any), sign electronically, and send them to the tax authority via the selected electronic portal;

NNT submits the dossier (taxpayer registration dossier along with the business registration dossier under the one-stop mechanism) to the competent state management agency for submission. The competent state management agency submits the received information of NNT to the tax authority via the General Department of Taxation's electronic portal.

Step 02: tax authority reception:

- For paper taxpayer registration dossiers:

+ If the dossier is submitted directly at the tax authority: The tax official receives and stamps the receipt on the taxpayer registration dossier, specifies the date received, the number of documents according to the dossier content list for the direct submission case at the tax authority. The tax official issues an appointment note for the result return, processing timeframe of the received dossier;

+ If the taxpayer registration dossier is sent by post: The tax official stamps the reception date on the dossier and records the tax authority’s correspondence number;

The tax official checks the taxpayer registration dossier. If the dossier is incomplete and needs further information or documents, the tax authority notifies the taxpayer using Form No. 01/TB-BSTT-NNT in Appendix II issued with Decree 126/2020/ND-CP within 02 (two) working days from the date of receiving the dossier.

- For electronic taxpayer registration dossiers:

The tax authority receives dossiers via the General Department of Taxation's electronic portal, handles and processes dossiers through the tax authority's electronic data processing system:

+ Receipt of dossiers: The General Department of Taxation's electronic portal sends a notification of receipt to the taxpayer for the submitted dossier through the selected electronic portal (General Department of Taxation’s electronic portal/competent state agency's electronic portal or T-VAN service provider) no later than 15 minutes from receiving the electronic taxpayer registration dossier from the taxpayer;

+ Check and process dossiers: The tax authority checks and processes the taxpayer's dossier according to the legal regulations on taxpayer registration and returns the processing result via the selected portal by the taxpayer to file and send the dossier:

++ For dossiers that are complete, correctly follow the procedure, and are subject to result return: The tax authority sends the resolved dossier result to the selected portal from which the taxpayer filed and sent the dossier within the time specified in Circular 105/2020/TT-BTC;

++ In cases where the dossier is incomplete or does not meet procedure requirements, the tax authority sends a notification of dossier rejection to the selected electronic portal from which the taxpayer filed and sent the dossier within 02 (two) working days from the date indicated in the Dossier Receipt Notice.

Vietnam: What does the first-time taxpayer registration dossiers for dependants declared directly at the tax authority include?

Pursuant to the provisions in sub-item 17, Section I, Part II of the Procedures issued with Decision 2589/QD-BTC in 2021 regarding the components and quantity of taxpayer registration dossiers for dependants to receive personal exemptions - Individuals subject to personal income tax must submit a taxpayer registration dossier for dependants directly at the tax authority as follows:

* Dossier components include:

- Taxpayer registration declaration according to Form No. 20-DK-TCT issued with Circular 105/2020/TT-BTC.

- Copy of the Citizen Identity Card or valid Identity Card for dependants who are Vietnamese nationals aged 14 and above; a copy of the Birth Certificate or valid Passport for dependants who are Vietnamese nationals under 14 years of age; a copy of a valid Passport for dependants who are foreign nationals or Vietnamese nationals residing abroad.

* Dossier quantity: 01 (set).