Does deduction limit dependants in Vietnam?
Does deduction limit dependants in Vietnam? What do dependants in Vietnam comprise?
I am a single father raising children, my wife passed away early and still has my mother. My mother is also older this year, my child is still in elementary school. So can I deduct the family situation for both of them? What do dependants in Vietnam comprise? Thank you.
Does deduction limit dependants in Vietnam?
Pursuant to Item c.2 point c, Clause 1, Article 9 of Circular 111/2013/TT-BTC stipulating deduction for dependants as follows:
c.2) Deduction for dependants
c.2.1) The taxpayer may make deductions for his or her dependants if the taxpayer has applied for tax registration and been issued with the tax code.
c.2.2) When registering deductions for dependants, the taxpayer shall be issued with tax codes for dependants and make preliminary deductions in the year from the registration date. The dependants that are registered before this Circular takes effect are still eligible for deductions until being issued with tax codes.
c.2.3) If the taxpayer has not made deductions for dependants in the tax year, the deductions for dependants shall be made from the month in which the custody is given when the taxpayer settles tax and registers deductions for dependants. Deductions for other dependants, who are defined in Point d.4 Clause of this Article, must be registered by December 31 of the tax year, otherwise the deduction for the whole tax year shall not be made.
c.2.4) The deduction for a dependant shall apply to only one taxpayer in the tax year. Where multiple taxpayers have the same dependant to provide for, they shall reach an agreement on the person that makes the deduction for such dependant.
Thus, according to the regulations in Vietnam, there is no limit to the number of people who can be deducted, only one person can be deducted once. So you can make deductions for both your mother and your child.
What do dependants in Vietnam comprise?
Pursuant to Item d.1 point d Clause 1 Article 9 of Circular 111/2013/TT-BTC, dependants include:
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 the average monthly income in the year from all sources ≤ 1,000,000 VND.
d.2) The taxpayer's spouse that meet the conditions in Point dd Clause 1 of this Article.
d.3) The taxpayer’s parents, parents-in-law, stepparents, legitimate adoptive parents that meet the conditions in Point dd Clause 1 of this Article.
d.4) Other dependants that the taxpayer has to provide for, who meet the conditions in Point dd Clause 1 of this Article, including:
d.4.1) The taxpayer’s brothers and sisters.
d.4.2) The taxpayer’s grandparents, aunts, uncles.
d.4.3) The taxpayer’s nieces and nephews.
d.4.4) Other people to provide for as prescribed by law.
So, your child and your biological mother are on the list of dependents, so you can file to make deductions for both in Vietnam.
Best Regards!
