Officially Increase the Personal Income Tax Family Deduction to VND 11 Million per month

Officially Increase the Personal Income Tax Family Deduction to VND 11 Million per month
Nguyen Trinh

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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