Official Dispatch Implementing Resolution 954 Adjusting Family Circumstance Deductions

To implement the provisions of Resolution 954/2020/UBTVQH14, the General Department of Taxation requests the heads of the provincial and city tax departments to direct the departments and Sub-departments of Taxation to promptly publicize the policy on the family circumstance deduction levels of Personal Income Tax (PIT) according to Resolution 954/2020/UBTVQH14. Additionally, guide taxpayers (TPTs) on declaring and finalizing PIT from salaries and wages for the year 2020. To be specific:

- The family circumstance deduction levels of PIT according to Resolution 954 are effective from July 1, 2020, and applicable from the 2020 tax period;- Tax agencies guide TPTs to declare and temporarily pay PIT according to the new family circumstance deduction levels from the PIT declaration period of July 2020 (the deadline for filing is August 20, 2020) for TPTs declaring taxes monthly and from the temporary PIT declaration period of Q3 2020 (the deadline for filing is October 30, 2020) for TPTs declaring taxes quarterly;- In the case where TPTs have temporarily paid PIT according to the old deduction levels (VND 9 million/month for TPTs and VND 3.6 million/month for dependents) for the months/quarters of the 2020 tax period, tax agencies guide TPTs to re-determine the payable tax amounts for the 2020 tax period according to the family circumstance deduction levels in Resolution 954 when finalizing PIT for 2020.

Details are available at: Official Dispatch 2546/TCT-DNNCN issued on June 23, 2020.

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