Registering dependents in the family deduction plays a crucial role in reducing their taxable income. Let’s explore the regulations and procedures for registering dependents so that you can have a clearer understanding, as well as conduct the necessary steps to claim dependent exemption.
1. Who can be claimed as qualified dependents?
Dependents for family deduction are individuals whom the taxpayer is responsible for supporting, aiming to calculate the deduction amount from his or her taxable income. According to the regulations of Vietnamese law, specifically Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC, the dependents eligible for family deduction include:
- Children below 18 years old; Children from 18 years old and older who are disabled and incapable of working; Children studying in Vietnam or overseas in universities, colleges, professional intermediate schools, and vocational schools, including children from 18 years old and older in high schools (including the period awaiting university enrolment result from June to September in 12th grade) that have no income or the average monthly income in the year from all sources ≤ 1,000,000 VND.
- Parents, spouse, other dependants outside working age or are within working age but are disabled, unable to work who have no income, or their average monthly income from all sources does not exceed 1,000,000 VND.
2. What are the required documents in the application for tax deduction?
Based on Article 1 of Circular 79/2022/TT-BTC (Amending and Supplementing Point g, Clause 1 of Article 9 of Circular 111/2013/TT-BTC dated August 15, 2013), documentation for claiming the dependents deduction includes:
| Subject | Classification | Required Documents |
| 1. For Children | Under 18 years of age | Photocopy of Birth Certificate |
| Photocopy of the ID card (if any) | ||
| From 18 years of age (disabled and incapable of work) | Photocopy of Birth Certificate and ID card (if any)
Photocopy of Certificate of disability according to regulations of law on the disabled |
|
| Study in Vietnam or overseas in universities, college, vocational schools (including the period awaiting university enrolment results from June to September in 12th grade)) that have no income or the average monthly income ≤ 1,000,000 VND | Photocopy of Birth Certificate | |
| Photocopy of the student’s card or declaration certified by the schools, or other papers proving the study at such school | ||
| For adopted children, illegitimate children, stepchildren | Apart from the aforesaid papers, other papers proving the relationship are required, such as photocopy of the decision for children adopted, certificate of adoption by the competent authorities, etc. | |
| 2. For spouse | Their average monthly income does not exceed 1,000,000 VND, who are outside working age or of working age but incapable of work (disabled and ill people, …) | Photocopy of the ID card |
| Photocopy of the household book (which proves the husband and wife relationship) or a photocopy of the Certificate of marriage | ||
| Certificate of disability according to regulations of law (if any) | ||
| 3. Parents, parents-in-law, stepparents, legitimate adoptive parents | Their average monthly income does not exceed 1,000,000 VND, who are outside working age or within working age but incapable of work (disabled and ill people, …) | Photocopy of the ID card |
| Certificates of disability according to regulations of law (if any) | ||
| Papers proving the relationship between the dependants and the taxpayer (Photocopy of the household book/ decision on certification of adoption,…) | ||
| 4. Other individuals | Their average monthly income does not exceed 1,000,000 VND. They have no place of residence/supportive individuals. The taxpayer is the person directly providing support. | Photocopy of the ID card |
| Papers proving the relationship between the dependants and the taxpayer (Papers proving the custody/Household book/Decision recognizing foster parents,…) | ||
| Photocopy of Certificate of disability according to regulations of law (if any) | ||
| A declaration that the dependant is living with the taxpayer, which made by the taxpayer and certified by the People’s Committee of the commune | ||
| Foreigners reside in Vietnam (for at least 183 days) and have the average monthly income does not exceed 1,000,000 VND | Equivalent legal documents proving the relationship between the dependants and the taxpayer (If not have the above proofs) |
3. How to calculate family deduction in Vietnam?
Based on Resolution 954/2020/UBTVQH14, the family deduction amount is regulated as follows:
| Subject | Family deduction amount |
| Taxpayer | 11,000,000 đ/month (132,000,000 đ/year) |
| Each dependant | 4,400,000 đ/month |
4. Deadline for registering dependents for family deduction
Each employer shall make tax registration for employees earning income from salaries or wages and make tax registration for employees’ dependents once a year within 10 working days before the submission of annual statement of personal income tax (Section c.2.3, Point c, Clause 1, Article 9 of Circular 111/2013/TT-BTC).
Other dependants, who meet the conditions in Section d.4, Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC on personal income tax guidance: The latest registration deadline is December 31 of the tax year (Section c.2.3, Point c, Clause 1, Article 9 of Circular 111/2013/TT-BTC).
5. Steps to register dependents for family deduction
5.1 In case the taxpayer directly submits the dependent tax registration documents to the tax authority
Step 1: Prepare the tax registration dossier for the dependent
Based on Point b, Clause 9, and Point b, Clause 10 of Article 7 of Circular 105/2020/TT-BTC, the tax registration dossier includes:
- Application form for tax registration No. 20-DK-TCT issued together with Circular 105/2020/TT-BTC.
- Copy of birth certificate (for dependent aged less than 14)/ID Card/Passport of the dependent.
- Number of dossier sets: 01
- In the case where the taxpayer has submitted the dependent registration dossier before June 28, 2016 (the effective date of Circular 95/2016/TT-BTC) but has not registered the tax for the dependent, they should submit the above-mentioned tax registration dossier to obtain a tax identification number for the dependent.
Step 2. Tax authority receives, records, verifies, and stamps the documents
5.2 In case the individual authorizes his company
Step 1: Preparing the tax registration dossier for dependents
Based on Point a, Clause 10 of Article 7 of Circular 105/2020/TT-BTC, the tax registration dossier includes:
- Authorization document between that individual and his/her income payer.
- Copy of Birth Certificate/ID card/ Passport of the dependent (Section 2. Dependent registration dossier for family deductions).
- Number of dossier sets: 02
- The income payer keeps one (01) copy and submits one (01) registration copy to the tax authority.
Step 2. Tax authority receives, records, verifies, and stamps the documents
6. Important notes when registering family deduction for dependents
Dependent supporting documents: The deadline for submitting dependent supporting documents to the organization, the individual paying income, or the tax authority (where the initial dependent registration form was submitted) is no later than 03 months from the date of submitting the dependent registration form. (according to Point h.2.1.2, Clause 1, Article 9 of Circular 111/2013/TT-BTC).
