Below is the noteworthy content of Resolution 954/2020/UBTVQH14 regarding the adjustment of the family circumstance-based deduction levels of personal income tax, which has just been approved by the National Assembly Standing Committee on June 2, 2020.
To be specific, in Article 1 Resolution 954/2020/UBTVQH14 adjusted the family circumstance deduction level stipulated in Clause 1 Article 19 of the Personal Income Tax Law (amended and supplemented in Clause 4 Article 1 of the Amended Personal Income Tax Law 2012) as follows:
1. The deduction level for taxpayers is 11 million VND/month (132 million VND/year);
2. The deduction level for each dependent is 4.4 million VND/month.
Thus, from July 1, 2020, the deduction level for taxpayers is 11 million VND/month (an increase of 2 million VND/month) and the deduction level for each dependent is 4.4 million VND/month (an increase of 0.8 million VND/month).
Cases that have temporarily paid tax according to the family circumstance deduction level in Clause 4 Article 1 of the Amended Personal Income Tax Law 2012 (9 million VND/month for taxpayers and 3.6 million VND/month for each dependent) shall be re-determined based on the new family circumstance deduction level in this Resolution when finalizing personal income tax for the year 2020.
More details can be found in Resolution 954/2020/UBTVQH14, effective from July 1, 2020, and applicable from the 2020 tax calculation period.
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