Family circumstance deduction is the amount deducted from taxable income before tax calculation for income from business, income from salary and wages of taxpayers being resident individuals, including deduction for family circumstances. taxpayers themselves and deductions for dependents. So how is the family deduction in 2022 regulated?
Article table of contents
Family circumstances deduction in 2022 (Illustration image)
1. Family circumstances deduction in 2022
According to Resolution 954/2020/UBTVQH14 , the deduction for family circumstances in 2022 remains unchanged compared to 2021, specifically:
- The deduction for taxpayers is 11 million VND/month (132 million VND/year);
- The deduction for each dependent is 4.4 million VND/month.
2. Family circumstances deduction for taxpayers' dependents
Taxpayers are entitled to deduction of family circumstances for their dependents if the taxpayer has registered for tax and is granted a tax identification number. According to Circular 111/2013/TT-BTC , taxpayers' dependents include:
2.1 Taxpayer's children
Dependents being children of taxpayers include natural children, legally adopted children, illegitimate children, stepchildren of the wife, stepchildren of husbands, specifically:
- Children under 18 years old (full month).
Example 10: Mr. H's child born on July 25, 2014 is counted as a dependent from July 2014.
- Children aged 18 years or older are disabled and unable to work.
- Children who are studying in Vietnam or abroad at university, college, professional secondary school or vocational training level, including children aged 18 years or older who are studying at high school (including pending graduation). university entrance exam results from June to September in grade 12) have no income or have an average monthly income of the year from all income sources not exceeding 1,000,000 VND.
2.2 Other dependents of taxpayers
Consists of:
- Taxpayer's spouse;
- Birth father, natural mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; the taxpayer's legal adoptive father and mother;
- Other helpless individuals that taxpayers are directly nurturing include:
+ Siblings, siblings, siblings of taxpayers.
+ Grandfather, grandmother; grandfather grandmother; biological aunt, biological aunt, biological uncle, biological uncle, biological uncle of the taxpayer.
+ The taxpayer's biological grandchildren include: children of biological brothers, sisters and brothers.
+ Persons who must directly bring up other people according to the provisions of law.
Note: The above individuals to be counted as dependents of taxpayers must meet the following conditions:
- Persons of working age must simultaneously satisfy the following conditions:
+ Being disabled, unable to work.
+ No income or the average monthly income of the year from all income sources does not exceed 1,000,000 VND.
- For people outside the working age, they must have no income or have an average monthly income of the year from all income sources not exceeding 1,000,000 VND.
3. Instructions for deduction for dependents
Taxpayers with income from business, salary or wages over 11 million VND/month to receive family circumstance-based deduction for dependents shall declare as follows:
3.1 For taxpayers earning income from wages and salaries
- Taxpayers register dependents according to the form promulgated together with the guiding document on tax administration and submit 02 copies to the income paying organization or individual as a basis for calculation of deduction for the dependent.
- When there is a change (increase, decrease) in a dependent, the taxpayer shall make additional declarations about the dependent's changed information according to the form issued together with the guiding document on tax administration and submit it to the organization. , income payers or tax authorities for taxpayers who declare tax directly with tax authorities.
- The place to submit the application to prove the dependent is the place where the taxpayer submits the dependent registration form.
- Time limit for submission of documents to prove dependents : within 03 months from the date of submission of dependent registration declarations (including registration of change of dependents).
Past the deadline for submitting the above-mentioned dossiers, if the taxpayer fails to submit the documents proving the dependents, the dependents will not be deducted and the payable tax amount must be adjusted.
3.2 For taxpayers with business income
- Business individuals pay tax by the method of declaration and registration of dependents according to the form promulgated together with the guiding document on tax administration and submit it to the tax authority directly managing them together with the temporary tax payment declaration.
When there is a change (increase, decrease) in a dependent, the taxpayer shall make additional declarations of the dependent's changed information according to the form issued together with the guiding document on tax administration and submit it to the tax authority directly. continue management.
- Business individuals pay tax by the flat tax method and declare deductions for their dependents according to the flat tax declaration.
- Time limit for submission of documents to prove dependents : within three (03) months from the date of declaration of family deduction (including cases of increase or decrease of dependents or new business start-ups).
4. Some Notes
- Documents proving dependents: comply with the provisions of Circular 111/2013/TT-BTC .
- Each dependent can only be deducted once for one taxpayer in the tax year.
In case many taxpayers have the same dependents to take care of, the taxpayers themselves agree to register for family circumstance-based reduction in one taxpayer.
- Taxpayers only have to register and submit proof of identity for each dependent once during the period of calculation of family circumstance-based deduction.
In case the taxpayer changes the place of work or business, the registration and submission of documents to prove the dependents is the same as in the case of first-time registration of dependents.
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