What is the personal exemption when calculating personal income tax in Vietnam in 2025?

What is the personal exemption when calculating personal income tax in Vietnam in 2025?

The current personal exemption is adjusted by Article 1 of Resolution 954/2020/UBTVQH14 which stipulates as follows:

personal exemption

Adjust the personal exemption as 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. The deduction for taxpayers is 11 million VND/month (132 million VND/year);

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

Thus, the personal exemption when calculating personal income tax in 2025 is 11 million VND/month (132 million VND/year).

What is the personal exemption when calculating personal income tax in Vietnam in 2025?

When is the personal exemption applicable when calculating personal income tax in Vietnam?

Pursuant to Subsection c.1, Point c, Clause 1, Article 9 of Circular 111/2013/TT-BTC, the personal exemption for taxpayers is applied as follows:

Deductions

The deductions guided in this Article are deductions applied to taxable income of individuals before determining taxable income from salary, wages, or business. Specifically, as follows:

1. Personal exemption

According to Article 19 of the Personal Income Tax Law; Article 1, Clause 4 of the Law amending and supplementing several articles of the Personal Income Tax Law; Article 12 of Decree No. 65/2013/ND-CP, personal exemptions are as follows:

...

c) Principle of personal exemption calculation

c.1) personal exemption for the taxpayer:

c.1.1) Taxpayers with multiple sources of income from salary, wages, or business may choose to apply the personal exemption at one place at any given time (calculated monthly).

c.1.2) For foreigners who are residents in Vietnam, the personal exemption may be applied from January or from the month of their arrival in Vietnam in case they come to Vietnam for the first time until the end of their employment contract and leave Vietnam within the tax year (calculated fully by month).

c.1.3) In cases where, during the tax year, a personal deduction for oneself has not been applied or has not been applied for 12 months, a full 12-month deduction may be applied when finalizing tax as per regulations.

...

Thus, taxpayers with income from salary or wages will automatically be entitled to a personal exemption at the rate of 11 million VND/month (i.e., 132 million VND/year).

What documents are required to prove dependants for the personal exemption in Vietnam?

According to Point g, Clause 1, Article 9 of Circular 111/2013/TT-BTC (amended by Article 1 of Circular 79/2022/TT-BTC), the documents required to prove dependants for the personal exemption are as follows:

(1) For children:

- Children under 18 years old: Proof documents include a photocopy of the Birth Certificate and a photocopy of an Identity Card or Citizen Identification (if any).

- Children 18 years or older who are disabled and unable to work; proof documents include:

+ A photocopy of the Birth Certificate and a photocopy of an Identity Card or Citizen Identification (if any).

+ A photocopy of a Disability Certificate as prescribed by law regarding disabled persons.

- Children attending educational levels as guided at Subsection d.1.3, Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC; proof documents include:

+ A photocopy of the Birth Certificate.

+ A photocopy of the Student Card or a declaration certified by the school or other documents proving attendance at educational institutions such as universities, colleges, vocational secondary schools, or professional secondary schools.

- For adopted children, children born out of wedlock, or stepchildren, in addition to the documents mentioned for each case above, the proof documents need to include additional documents to prove the relationship, such as a photocopy of the adoption decision, decision recognizing the acceptance of father, mother, or child by the competent state authority...

(2) For spouse, proof documents include:

- A photocopy of the Identity Card or Citizen Identification.

- A photocopy of the Residency Information Confirmation or Notification of Personal Identification Number and information in the National Database on Residents, or other documents issued by the Police Department (proving the spousal relationship) or a photocopy of the Marriage Certificate.

If the spouse is within working age, in addition to the aforementioned documents, proof documents should include additional papers proving the dependant is unable to work, such as a photocopy of a Disability Certificate for disabled persons unable to work according to the law on disabled persons, a photocopy of medical records for those suffering from illnesses rendering them unable to work (e.g., AIDS, cancer, chronic kidney failure, etc.).

(3) For biological father, biological mother, father-in-law, mother-in-law (or father-in-law, mother-in-law), stepfather, stepmother, legal adoptive father, legal adoptive mother, proof documents include:

- A photocopy of the Identity Card or Citizen Identification.

- Legal documents to determine the relationship of the dependant to the taxpayer, such as a photocopy of Residency Information Confirmation or Notification of Personal Identification Number and information in the National Database on Residents, or other documents issued by the Police Department, Birth Certificate, decision recognizing the acceptance of father, mother, or child by the competent state authority.

If within working age, in addition to the aforementioned documents, proof documents need to include papers proving disability, being unable to work, such as a photocopy of a Disability Certificate for disabled individuals unable to work according to the law on disabled persons, a photocopy of medical records for those suffering from illnesses that render them unable to work (e.g., AIDS, cancer, chronic kidney failure, etc.).

(4) For other individuals as guided at Subsection d.4, Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC, proof documents include:

- A photocopy of the Identity Card or Citizen Identification or Birth Certificate.

- Legal documents to identify the responsibility for support as prescribed by law.

If the dependant is within working age, in addition to the aforementioned documents, the proof documents should include additional papers proving the inability to work, such as a photocopy of a Disability Certificate for disabled individuals unable to work according to the law on disabled persons, a photocopy of medical records for those suffering from illnesses that render them unable to work (e.g., AIDS, cancer, chronic kidney failure, etc.).

Legal documents at Subsection g.4.2, Point g, Clause 1, Article 9 of Circular 111/2013/TT-BTC include any legal documents identifying the relationship of the taxpayer with the dependant, such as:

- A photocopy of documents determining a support obligation according to the law (if any).

- A photocopy of Residency Information Confirmation or Notification of Personal Identification Number and information in the National Database on Residents, or other documents issued by the Police Department.

- The taxpayer's self-declaration according to the form issued with Circular 80/2021/TT-BTC and Decree 126/2020/ND-CP with confirmation of the Commune People's Committee where the taxpayer resides regarding the fact that the dependant is living together.

- The taxpayer's self-declaration according to the form issued with Circular 80/2021/TT-BTC and Decree 126/2020/ND-CP with confirmation of the Commune People's Committee where the dependant currently resides about the dependant currently residing in the locality and having no one to support (case not living together).

(5) Foreign residents, if they do not have documents according to the guidance for specific cases above, must have equivalent legal documents to prove the dependant.

(6) For taxpayers working in economic organizations, administrative agencies, or units with declared dependants such as parents, spouse, children, and others in the taxpayer's profile:

The proof documents for dependants shall be implemented according to the guidance in subsections g.1, g.2, g.3, g.4, g.5, Point g, Clause 1, Article 9 of Circular 111/2013/TT-BTC or only need the Declaration of dependants according to the form issued with Circular 80/2021/TT-BTC and Decree 126/2020/ND-CP with the head of the unit's confirmation on the left side of the declaration.

The head of the unit is only responsible for the following contents: name of the dependant, birth year, and relationship with the taxpayer; other contents are self-declared and self-responsible by the taxpayer.

Note: From the date the Tax Authority announces the completion of data connection with the National Database on Residents, taxpayers are not required to submit the aforementioned proof documents for dependants if the information in these documents is already in the National Database on Residents.