When does the enterprise apply for taxpayer registration for the dependants of employees in Vietnam?

When does the enterprise apply for taxpayer registration for the dependants of employees in Vietnam?

Based on Article 33 of the Law on Tax Administration 2019, the regulations on the deadline for initial taxpayer registration are as follows:

Deadline for Initial Taxpayer Registration

1. For taxpayers registering concurrently with enterprise registration, cooperative registration, or business registration, the deadline for taxpayer registration is the deadline for enterprise registration, cooperative registration, or business registration as stipulated by law.

2. For taxpayers directly registering with the tax authority, the deadline for taxpayer registration is 10 working days from the following dates:

a) Issuance of the Business Registration Certificate, Establishment and Operation License, Investment Registration Certificate, or Establishment Decision;

b) Commencement of business activities for entities not subject to business registration, or business households and individuals subject to business registration but not yet granted a Business Registration Certificate;

c) Obligation to withhold tax and remit tax on behalf of others arises; organizations remit tax on behalf of individuals per a contract or business cooperation agreement;

d) Signing of a contract to receive the main contractor or subcontractor when foreign contractors or subcontractors declare and pay tax directly to the tax authority; signing of a contract or oil and gas agreement;

dd) An obligation for personal income tax arises;

e) A request for tax refund arises;

g) Arising other obligations with the state budget.

3. Organizations or individuals paying income have the responsibility to apply for taxpayer registration on behalf of individuals who earn income within 10 working days from the date the tax obligation arises in cases where the individual does not have a tax code; apply for taxpayer registration on behalf of the dependants of taxpayers within 10 working days from the date the taxpayer registers for personal exemptions in accordance with the law in cases where the dependent does not have a tax code.

In cases where the dependent does not have a tax code, the company has the responsibility to register the taxpayer on behalf of the taxpayer's dependent within 10 working days from the date the taxpayer registers for personal exemptions according to the law.

When does the enterprise apply for taxpayer registration for the dependants of employees in Vietnam? (Image from Internet)

What is the personal exemption level for dependants in Vietnam?

According to Article 1 of the Resolution issued with Resolution 954/2020/UBTVQH14, the regulations are as follows:

personal exemption

Adjust the personal exemption level stipulated in Clause 1, Article 19 of the Personal Income Tax Law No. 04/2007/QH12, which has been amended and supplemented by Law No. 26/2012/QH13 as follows:

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

2. Deduction amount for each dependent is 4.4 million VND/month.

The employee is granted a personal exemption of 4.4 million VND/month for each dependent.

Who is considered a dependent of the employee in Vietnam?

Based on Article 9 of Circular 111/2013/TT-BTC, employees are entitled to apply for personal exemptions for the following dependants:

- Children: biological children, legally adopted children, illegitimate children, stepchildren of the wife or husband, specifically including:

+ Children under 18 years old (full years and months).

+ Children from 18 years old or older with disabilities, unable to work.

+ Children studying in Vietnam or abroad at the university, college, vocational secondary, or vocational training levels, including children from 18 years old and above still in high school (including waiting for college entrance exam results from June to September in 12th grade) with no income or an average monthly income of not more than 1,000,000 VND from all sources.

- The spouse of the taxpayer who meets the conditions at Point dd, Clause 1, Article 9 of Circular 111/2013/TT-BTC.

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

- Other individuals without support that the taxpayer must directly nurture and meet the conditions at Point dd, Clause 1, Article 9 of Circular 111/2013/TT-BTC:

+ Siblings of the taxpayer.

+ Grandparents; uncles, aunts, uncles of the taxpayer.

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

+ Other individuals whom the taxpayer is obligated to support as prescribed by law.

- Individuals accounted as dependants according to the guidelines at Subsections d.2, d.3, d.4, Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC:

+ For individuals in working age, they must meet the following conditions:

+ Disabled, unable to work.

+ Have no income or an average monthly income not exceeding 1,000,000 VND from all sources for the year.

+ For individuals outside the working age, they must have no income or an average monthly income not exceeding 1,000,000 VND from all sources for the year.

- Disabled individuals unable to work, as guided at Subitem đ.1.1 Point dd Clause 1 Article 9 of Circular 111/2013/TT-BTC, are those regulated under the law for people with disabilities and those with conditions prohibiting work (such as AIDS, cancer, chronic kidney failure, etc.).