Is it Permissible to Register Changes to Dependents During the Year? What are the Procedures for Registering Changes to Dependents?
Is it possible to register for a dependent change within the year?
Based on subsection c.2 point c clause 1 Article 9 of Circular 111/2013/TT-BTC, amended by clause 6 Article 25 of Circular 92/2015/TT-BTC which provides for family circumstance deductions as follows:
Deductions
1. Family circumstance deductions
...
c) Principles of family circumstance deductions
...
c.2) Family circumstance deduction for dependents
c.2.1) Taxpayers are eligible for family circumstance deductions for dependents if they have taxpayer registration and been issued a tax identification number.
c.2.2) When taxpayers register family circumstance deductions for dependents, the tax authority will issue a tax identification number for the dependents and provisionally estimate the family circumstance deduction within the year from the registration date. For dependents who were registered for family circumstance deductions before the effective date of this Circular, the deduction continues until a tax identification number is issued.
c.2.3) In case taxpayers have not applied family circumstance deductions for dependents within the tax year, the deductions can be applied from the month the obligation to provide support arises when the taxpayer performs tax finalization and registers the family circumstance deductions for dependents. Especially for other dependents as guided in subsection d.4, point d, clause 1, of this Article, the deadline for registration is December 31 of the tax year. Past this deadline, the family circumstance deduction for that tax year will not be applied.
c.2.4) Each dependent can only be deducted once for one taxpayer within a tax year. In case multiple taxpayers share the support obligation for a dependent, the taxpayers must mutually agree to designate one taxpayer to claim the family circumstance deduction.
...
Throughout the year, each dependent can only be deducted once for one taxpayer. The dependent cannot be switched to another person within the tax year. The change can only occur after the tax year has ended.
Thus, in case of wanting to register for a change of dependents, one must wait until the end of the tax year to make the change.
Can I register to change dependents during the year? What is the procedure for changing dependents?
How is the registration for changing dependents regulated?
Based on subsection h.2 point h clause 1 Article 9 of Circular 111/2013/TT-BTC, amended by clause 6 Article 25 of Circular 92/2015/TT-BTC which provides for family circumstance deductions as follows:
Deductions
1. Family circumstance deductions
...
h) Declaration of family circumstance deductions for dependents
h.1) Taxpayers with income from businesses, salaries, or wages equal to or below 9 million VND/month are not required to declare dependents.
h.2) Taxpayers with income from businesses, salaries, or wages above 9 million VND/month to be eligible for family circumstance deductions for dependents are required to declare as follows:
...
h.2.1.1.2) Registration when there is a change in dependents:
When there is a change (increase or decrease) in dependents, taxpayers should supplement the information changes of dependents according to the form attached to the guidance document on tax management and submit it to the income-paying organization or individual, or the tax authority for taxpayers required to directly declare taxes with the tax authority.
...
At Article 36 of the Tax Administration Law 2019 it regulates as follows:
Notification about changes to taxpayer registration information
1. Taxpayers who register for taxpayer registration along with business registration, cooperative registration, or business operation registration, must notify changes in taxpayer registration information along with changes to business registration, cooperative registration, or business operation registration according to the law.
...
2. Taxpayers who directly register with the tax authority must notify the tax authority directly managing them of any changes to their taxpayer registration information within 10 working days from the date on which the information changes.
3. In case an individual authorizes the income-paying organization or individual to carry out the registration for changing taxpayer information on their behalf and their dependents, they must notify the income-paying organization or individual within 10 working days from the date the information changes. The income-paying organization or individual is responsible for notifying the tax management authority within 10 working days from the date of receiving the individual's authorization.
If taxpayers have changes regarding dependents (increase or decrease of dependents), they need to supplement the changes of dependent information according to the form attached to the guidance document on tax management and submit it to the income-paying organization or individual, or the tax authority for taxpayers required to directly declare taxes with the tax authority.
What is the current deduction level for dependents?
Based on the provision at Article 1 of Resolution 954/2020/UBTVQH14 which adjusts the family circumstance deduction level from July 1, 2021, as follows:
Family circumstance deduction level
Adjustment of the family circumstance deduction level as stipulated in clause 1 Article 19 of the Personal Income Tax Law No. 04/2007/QH12, which has been amended and supplemented at some points by Law No. 26/2012/QH13, as follows:
1. The deduction level for taxpayers is 11 million VND/month (132 million VND/year);
2. The deduction level for each dependent is 4.4 million VND/month.
The deduction level for taxpayers is 11 million VND/month (132 million VND/year) and for each dependent is 4.4 million VND/month.
LawNet
