What are documents proving dependants for children under 18 years of age in Vietnam?

What are documents proving dependants for children under 18 years of age in Vietnam?

At point g, clause 1, Article 9 of Circular 111/2013/TT-BTC amended by Article 1 of Circular 79/2022/TT-BTC and clause 6, Article 25 of Circular 92/2015/TT-BTC, the documents proving dependants for children under 18 years of age include the following documents:

Deductions

The deductions guided in this Article are the amounts deducted from the taxable income of the person before calculating taxable income from wages, remunerations, and business. In particular:

1. Personal deductions

According to Article 19 of the Law on Personal income tax, Clause 4 Article 1 of the Law on the amendments to the Law on Personal income tax, and Article 12 of the Decree No. 65/2013/ND-CP:

g) Documents proving dependants

g.1) Children:

g.1.1) For children under 18 years of age: photocopies of the Certificates of birth and ID cards or Citizen ID cards (if any).

g.1.2) For children from 18 years of age and over that are disabled and incapable of work:

g.1.2.1) Photocopies of the Certificates of birth and ID cards or Citizen ID cards (if any).

g.1.2.2) Photocopies of Certificates of disability according to regulations of law on the disabled.

g.1.3) For children in school mentioned in sub-point d.1.3 point d clause 1 of this Article:

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Therefore, documents proving dependants for children under 18 years of age include:

- Photocopies of the Certificates of birth

- ID cards or Citizen ID cards (if any)

What are documents proving dependants for children under 18 years of age in Vietnam? (Image from the Internet)

Can children under 18 years of age be eligible for deduction based on family circumstances in Vietnam?

According to Article 9 of Circular 111/2013/TT-BTC amended by clause 6, Article 25 of Circular 92/2015/TT-BTC, the deductions are regulated as follows:

Deductions

The deductions guided in this Article are the amounts deducted from the taxable income of the person before calculating taxable income from wages, remunerations, and business. In particular:

1. Personal deductions

According to Article 19 of the Law on Personal income tax, Clause 4 Article 1 of the Law on the amendments to the Law on Personal income tax, and Article 12 of the Decree No. 65/2013/ND-CP:

...

d) Dependants include:

d.1) Children, legitimate adopted children, illegitimate children, stepchildren. To be specific:

d.1.1) Children under 18 years of age.

Example 10: A child of Mr. H born on July 25, 2014 is considered a dependant from July 2014.

d.1.2) Children from 18 years of age and over that are disabled and incapable of work.

d.1.3) Children studying in Vietnam or overseas in universities, college, vocational schools, including children from 18 years of age and over in high schools (including the period awaiting university enrolment result from June to September in 12th grade) that have no income or have the average monthly income of ≤ 1.000.000 VND in the year from all sources.

Therefore, children under 18 years old (counted in months) are eligible for deduction based on family circumstances. In addition, the following cases are also eligible for deduction based on family circumstances:

- Children from 18 years of age and over that are disabled and incapable of work,

- Children studying in Vietnam or overseas in universities, college, vocational schools, including children from 18 years of age and over in high schools (including the period awaiting university enrolment result from June to September in 12th grade) that have no income or have the average monthly income of ≤ 1.000.000 VND in the year from all sources.

How much is reduction based on family circumstances for dependants under 18 years of age in Vietnam?

According to Article 19 of the Personal Income Tax Law 2007 amended by Article 1 of Resolution 954/2020/UBTVQH14, the reduction based on family circumstances is regulated as follows:

Reduction based on family circumstances

1. Reduction based on family circumstances means a sum of money deductible from pre-tax income from business, salary or wage of a resident taxpayer. Reduction based on family circumstances consists of the following two parts:

a/ Personal exemption: 11 million VND/month (132 million VND/year);

b/ Dependent exemption: 4,4 million VND/dependent/month.

2. The level of reduction based on family circumstances applicable to dependants is determined on the principle that each dependant may be counted only once for tax reduction for a taxpayer.

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Therefore, the reduction based on family circumstances for children under 18 years old is 4,400,000 VND/month.

Best Regards!