Is a Child Attending University Considered a Dependent?
Does a child attending university qualify as a dependent?
Based on Clause 3, Article 19 of the Personal Income Tax Law 2007, dependents are defined as individuals whom the taxpayer is responsible for supporting, including:
a) Minor children; children with disabilities who are incapable of working;
b) Individuals with no income or with income not exceeding the stipulated level, including adult children attending university, college, vocational high school, or vocational training; spouses who are incapable of working; parents who are beyond working age or incapable of working; other individuals with no refuge whom the taxpayer must directly support.
The Government of Vietnam stipulates the income levels and declaration procedures for determining dependents eligible for family deduction.
Therefore, according to the above regulations, an adult child attending university is still considered a dependent if the child's income is non-existent or does not exceed the stipulated level.
What is the dependent deduction amount and can it be applied to multiple taxpayers?
In accordance with Clauses 1 and 2, Article 19 of the Personal Income Tax Law 2007 as amended by Article 1 of Resolution 954/2020/UBTVQH14, the rules for family deductions are as follows:
- A family deduction is an amount subtracted from taxable income before calculating tax on income from business, salary, or wages for resident taxpayers. The family deduction includes two parts:
a) The deduction for the taxpayer is 11 million VND per month (132 million VND per year);
b) The deduction for each dependent is 4.4 million VND per month.
- The determination of family deductions for dependents follows the principle that each dependent is only counted once for one taxpayer.
Therefore, the deduction for each dependent is 4.4 million VND per month, and each dependent can only be applied for a deduction once for one taxpayer.
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