1. Family Deduction Amount
The family deduction is the amount deducted from taxable income before calculating taxes on income from business, wages, and salaries of the taxpayer, who is an individual residing in Vietnam.
The family deduction includes deductions for the taxpayer and their dependents. The law stipulates the family deduction amounts as follows:
- For the taxpayer: 11 million VND per month, equivalent to 132 million VND per year.
- For each dependent: 4.4 million VND per month.
Family deduction amount
2. Calculating Deductions for Dependents
Taxpayers must register deductions for dependents as per regulations.
Firstly, if a taxpayer has not claimed a deduction for dependents during the tax year, they can still claim a deduction starting from the month when the obligation to support the dependent arises, provided that they have registered for the deduction.
Secondly, if a taxpayer has obligations to support dependents who do not reside with them, such as siblings, grandparents, aunts, uncles, etc., the deadline for registering the deduction is no later than December 31 of the tax year. If the registration is not made by the specified deadline, the deduction will not be granted for that tax year.
Thirdly, if the taxpayer is subject to delegated tax settlement and has not claimed the family deduction for dependents during the tax year, they can still claim the deduction starting from the month when the obligation to support the dependent arises, provided that they have registered for the deduction through the organization that pays their income.
Calculating family deduction for dependents
3. Registering Family Deductions for Dependents
Employees working at units or business locations but receiving income from wages or salaries from the main office located in a different province than their workplace can register at the tax authority overseeing the main office or at the tax authority overseeing the dependent’s unit or business location.
If the employee registers at the dependent’s unit or business location, that unit or business location is responsible for transferring the dependent’s supporting documents to the main office. The main office is responsible for reviewing, retaining, and presenting the supporting documents when tax authorities carry out tax inspections.
During the period of claiming family deductions, if there are changes (increases/decreases) in the number of dependents or changes in the place of work, the registration must be conducted again.
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