What does the dependant registration for personal exemption include as guided by the General Department of Taxation of Vietnam?

What does the dependant registration for personal exemption include as guided by the General Department of Taxation of Vietnam?

Based on Section 1, Part II of administrative procedures issued with Decision 40/QD-BTC in 2023, the provisions on the dossier for registering dependants for personal exemption for individuals with income from wages or salaries are as follows:

- Case (1): The taxpayer registers dependant deduction through an organization or individual paying income

+ The taxpayer submits the dependant registration dossier to the organization or individual paying income, including:

++ The dependant registration form No. 07/DK-NPT-TNCN according to Appendix I - List of tax declaration documents issued with Decree 126/2020/ND-CP and Appendix II - Tax declaration form samples issued with Circular 80/2021/TT-BTC

++ Appendix on the declaration of the person who must be directly nurtured form No. 07/XN-NPT-TNCN according to Appendix I - List of tax declaration documents issued with Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam and Appendix II - Tax declaration form samples issued with Circular 80/2021/TT-BTC

++ Documents proving the dependant according to the guidance in Article 1 Circular 79/2022/TT-BTC dated December 30, 2022, of the Ministry of Finance.

(Note: Italicized content is amended and supplemented)

+ The organization or individual paying income submits the dependant registration dossier to the directly managing Tax authority, including:

Appendix on the summary of dependant registration for personal exemption (applicable to organizations, individuals paying income to register dependants for the employee) form No. 07/THĐK-NPT-TNCN according to Appendix I - List of tax declaration documents issued with Decree 126/2020/ND-CP dated October 19, 2020, of the Government of Vietnam and Appendix II - Tax declaration form samples issued with Circular 80/2021/TT-BTC

- Case (2): The taxpayer registers dependant deduction directly with the Tax authority, the dependant registration dossier includes:

+ The dependant registration form No. 07/DK-NPT-TNCN according to Appendix I - List of tax declaration documents issued with Decree 126/2020/ND-CP and Appendix II - Tax declaration form samples issued with Circular 80/2021/TT-BTC

+ Appendix on the declaration of the person who must be directly nurtured form No. 07/XN-NPT-TNCN according to Appendix I - List of tax declaration documents issued with Decree 126/2020/ND-CP and Appendix II - Tax declaration form samples issued with Circular 80/2021/TT-BTC;

+ Documents proving the dependant according to the guidance in Article 1 Circular 79/2022/TT-BTC

(Note: Italicized content is amended and supplemented)

- Number of dossiers: 01 (set).

Specifically, for individuals paying tax through organizations or individuals paying income, submit 02 (sets) of dependant registration forms for personal exemption to the organization or individual paying income.

What does the dependant registration for personal exemption include as guided by the General Department of Taxation of Vietnam? (Image from the Internet)

What are conditions for personal exemption in Vietnam?

Based on Clause 3, Article 19 of the Personal Income Tax Law 2007, the conditions for personal exemption depend on the factor of dependants, who are the ones the taxpayer is responsible for supporting, including:

- Minor children; children with disabilities, unable to work;

- Individuals without income or with income not exceeding a specified limit, including adult children attending university, college, professional secondary education or vocational training; spouse unable to work; parents who are beyond working age or unable to work; others with no place of refuge that the taxpayer must directly support.

The Government of Vietnam stipulates the income level, declaration to determine dependants eligible for personal exemption.

Moreover, to further clarify the conditions for dependants to consider personal exemption, Circular 111/2013/TT-BTC provides guidance as follows:

(1) For dependants who are the taxpayer's children

dependants who are the taxpayer's children include biological children, adopted children, children outside of wedlock, stepchildren of the wife or husband, specifically:

- Children under 18 years old (calculated fully by month).

- Children 18 years or older with disability, unable to work.

- Children attending schools in Vietnam or abroad at the university, college, professional secondary, or vocational level, including children 18 years or older attending high school (including during the waiting period for university results from June to September of the 12th grade) without income or with an average monthly income from all sources not exceeding VND 1,000,000.

(2) For other dependants of the taxpayer

- The taxpayer’s spouse satisfying the conditions at Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC.

- Biological, in-laws parents (father-in-law, mother-in-law or father-in-law, mother-in-law); stepfather, stepmother; lawful adoptive parents of the taxpayer satisfying the conditions at Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC.

- Other individuals with no place of refuge whom the taxpayer must directly support and satisfy the conditions at Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC, including:

+ Biological siblings of the taxpayer.

+ Grandparents (paternal and maternal); uncles, aunts, cousins of the taxpayer.

+ Nephews of the taxpayer including: children of biological siblings.

+ Other persons who must be directly supported as prescribed by law.

(3) Conditions for those in (2) to be considered as dependants

Individuals considered dependants as in (2) must meet the following conditions:

- For those within working age, they must satisfy concurrently the following conditions:

+ Disabled, unable to work.

In which, disabled person, unable to work are those subject to legal regulation on disabled persons, individuals with diseases inhibiting working ability (such as AIDS, cancer, chronic kidney failure,...).

+ Without income or average monthly income in the year from all sources not exceeding VND 1,000,000.

- For those beyond working age, they must have no income or an average monthly income in the year from all sources not exceeding VND 1,000,000.

What is the current personal exemption level in Vietnam?

Currently, the personal exemption level is implemented according to Resolution 954/2020/UBTVQH14, as follows:

- Deduction level for taxpayers is VND 11 million/month (VND 132 million/year);

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