If taxpayers change their workplace, what should they do to register and submit documents proving dependents for family deductions in Vietnam?

If taxpayers change their workplace, what should they do to register and submit documents proving dependents for family deductions in Vietnam?

In Clause 1, Article 9, Circular 111/2013/TT-BTC, some contents are abolished by Clause 6, Article 25, Circular 92/2015/TT-BTC, there are regulations on family deductions 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

....

h) Declaration of deduction for dependants

h.1) The taxpayer that earns 09 million VND/month or less from business or wages might not register dependants.

h.2) The taxpayer that earns over 09 million VND/month from business and wages shall follow the procedure below to make deductions for dependants:

h.2.1) For taxpayers that earn incomes from wages:

h.2.1.1) Registration of dependants

h.2.1.1.1) First registration of dependants:

The taxpayer that earns income from wages shall submit 02 applications for dependant registration (using the form provided in guiding documents on tax administration) to the income payer as the basis for calculating deductions for dependants.

The income payer shall keep 01 application and submit 01 application to the local tax authority when submitting the personal income tax statement of that person in accordance with the Law on Tax administration.

The person that directly declares tax at the tax authority shall submit 01 application for dependant registration (using the form provided in guiding documents on tax administration) to the tax authority that monitors the income payer when submitting his declaration of personal income tax in accordance with the Law on Tax administration.

...

i) The taxpayer shall register and submit proving documents for a dependant once throughout the deduction period. Where the taxpayer changes the workplace or business location, the application for dependant registration and proving documents shall be similarly submitted as guided in Point h.2.1.1.1 Clause 1 of this Article.

 

In Official Dispatch 5054/TCT-DNNCN of 2023, there are instructions on family deductions for dependents while the taxpayer is on leave as follows:

When a taxpayer is an individual who registers for family deductions for dependents and has been granted a tax code by the tax authority for dependents, family deductions will be temporarily calculated in the year from registration. In case the taxpayer changes his/her workplace, he/she must register and submit documents proving dependents as in the case of registering dependents for the first time according to regulations.

Thus, in case the taxpayer changes the workplace, he or she must register dependents to calculate family deductions for the entire working time at the new company and submit documents proving dependents as in the case of first registration of dependants.

According to this Article, when registering dependents for the first time, taxpayers register dependents according to the prescribed form and submit 02 copies to the organization or individual paying income as a basis for calculating deductions for dependents.

Organizations and individuals paying income keep 01 registration copy and submit 01 registration copy to the directly managing tax agency at the same time as submitting the personal income tax declaration of that tax period.

Particularly for individuals who directly declare tax to the tax authority, the individual submits 01 dependent registration according to the prescribed form to the tax authority directly managing the income payment organization at the same time as submitting their personal income tax declaration.

If a taxpayer changes his or her workplace, how do you register and submit documents proving dependents for family deductions? (Image from the Internet)

How many times can an individual receive a family deduction for a dependent in Vietnam?

Clause 2, Article 19 of the Personal Income Tax Law 2007 stipulates reduction based on family circumstances 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/ Reduction for the taxpayer, which is VND 4 million/month (VND 48 million/year);

b/ Reduction for each dependant of the taxpayer, which is VND 1.6 million/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.

3. Dependants of a taxpayer means persons a taxpayer is responsible for nurturing or taking care of, including:

a/ His/her minor children or disabled children who are incapable of working;

b/ Individuals who have no income or have incomes not exceeding the prescribed level, including adult children who are studying at a university, college, professional secondary school or job-training establishment; his/her spouse who is incapable of working; his/her parents who are beyond the working age or incapable of working; other supportless persons whom the taxpayer has to directly nurture.

The Government shall specify the income level and declaration for identification of dependants to be counted for reduction based on family circumstances.

Thus, each dependent can only be counted as a deduction once for one taxpayer in Vietnam.

What documents are included in the dossier to register for family allowances for dependents directly at the tax office in Vietnam?

In section a, Subsection 3, Section 3, Official Dispatch 13762/CTHN-HKDCN of 2023, there are instructions for dossiers to register for family deductions for direct dependents at the tax agency, including the following documents:

3. Documents required for registration of dependents

a) If a taxpayer directly follows procedures with the tax authority, an application for registration of dependents includes:

- The application form made using Form No. 07/DK-NPT-TNCN in Appendix II enclosed with the Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam.

- Documents proving qualifying dependents as prescribed in Article 1 of the Circular No. 79/2022/TT-BTC dated December 30, 2022 of the Ministry of Finance of Vietnam.

- The written certification, made using Form No. 07/XN-NPT-TNCN in Appendix II enclosed with the Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance of Vietnam, given by the People's Committee of commune/ward where the dependent resides, if the taxpayer has direct custody of a dependent.

Best regards!