One Month of Unpaid Leave: Is Family Circumstance Deduction Allowed?

Section 4, Article 1 of the Law amending and supplementing a number of provisions of the Personal Income Tax Law 2012 stipulates:

Family circumstance deduction is the amount deducted from taxable income before calculating tax on income from business, wages, and salaries of tax subjects who are resident individuals.

Family circumstance deduction as prescribed in Article 1 of Resolution 954/2020/UBTVQH14 comprises two parts as follows:

- The deduction level for the tax subject is 11 million VND/month (132 million VND/year);

- The deduction level for each dependent is 4.4 million VND/month.

Thus, when settling taxes annually, the amount of family circumstance deduction will be calculated for the entire year, regardless of whether the laborer had any unpaid leave during that year. Therefore, you are still eligible for the family circumstance deduction, and the deduction level for you is 132 million VND/year and for your child is 4.4 million VND/month.

Sincerely!