Sáng ngày 17/02/2022, Tổng cục Thuế tổ chức chương trình hỗ trợ trực tuyến hướng dẫn kê khai…
INCREASE THE PERSONAL PLAN DISCOUNT DISCOUNT TO 11 MILLION VND
On June 2, 2020, the National Assembly Standing Committee issued Resolution No. 954/2020/UBTNQH14 agreeing to increase the deduction for family circumstances and personal income tax from 9 to 11 million dongs. When the family deduction is increased to 11 million VND/month, many people will not have to pay personal income tax.
According to Article 1 of this Resolution, the personal income tax deduction level is amended and supplemented as follows:
– The deduction for taxpayers is 11 million VND/month (corresponding to 132 million VND/year)
– The deduction for dependents is 4.4 million VND/person/month
The Resolution takes effect from July 1, 2020 and applies from the tax period 2020. Details of the Resolution can be found here!
The personal income tax declaration period was temporarily calculated from wages and salaries in July 2020 (the deadline for submitting the declaration is August 20, 2020) for taxpayers subject to monthly tax declaration and from the tax declaration period. Personal income temporarily calculated in the third quarter of 2020 (the deadline for submitting the declaration is October 30, 2020) for taxpayers subject to quarterly tax declaration, the family circumstance-based deduction specified in Article 1 of Decree No. 954/2020/UBTVQH14.
At the personal income tax period from salaries and wages in 2020, taxpayers are entitled to the reduction of family circumstances as prescribed in Article 1 of Resolution No. 954/2020/UBTVQH14.
In the case of months/quarters in the tax period of 2020, the taxpayer has temporarily paid personal income tax from salaries and wages according to the family deduction rate specified in Clause 1, Article 19 of the Law on Personal Income Tax. No. 04/2007/QH12 has been amended and supplemented with several articles under Law No. 26/2012/QH13 (9 million VND/month for taxpayers and 3.6 million VND/month for each dependent) Then when individuals finalize personal income tax 2020 the deduction for family circumstances will be adjusted by Resolution No. 954/2020/UBTVQH14.
The family circumstance-based deduction is the amount deducted from taxable income before tax calculation for income from business, salary, and wages of resident taxpayers.
In case a resident individual has both incomes from business and income from wages and salaries, a one-time deduction from family circumstances shall be calculated from the total income from business and wages and salaries.
How to calculate family deductions
1. Family circumstances deduction for taxpayers themselves:
– Taxpayers have multiple sources of income from salaries, wages, and business at the same time (in full monthly basis) taxpayers choose to calculate the family deduction for themselves in one place.
– In the case in the tax year, the individual has not yet deducted enough for himself or the deduction for himself is not enough 12 months, the full 12 months will be deducted when making tax finalization.
2. Family circumstances deduction for dependents:
– Dependents must be registered for deduction with tax authorities and granted tax identification numbers.
+ When taxpayers register for family circumstance-based deduction for dependents, they will be granted a tax identification number by the tax authority for dependents and is temporarily deducted from family circumstances in the year since registration.
+ If the taxpayer has not yet calculated the deduction for family circumstances for his/her dependents in the tax year, deductions for dependents from the month in which the maintenance obligation arises when the taxpayer Make tax finalization and register for family deduction for dependents.
– 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 are free consent to apply for a family deduction on a single taxpayer.
– Dependents include:
+ Children: natural children, legally adopted children, illegitimate children, stepchildren of the wife, stepchildren of husband,
+ The spouse of the taxpayer.
+ Birth father and mother; Father-in-law, mother-in-law (or father-in-law, mother-in-law); Stepfather, stepmother; Adoptive father, adoptive mother
+ Other helpless individuals that taxpayers are directly nurturing: Brother, brother, biological sister, younger brother of the taxpayer. Grandma grandpa; Grandfather grandmother; Aunt, aunt, uncle, uncle tax payer's uncle. Taxpayer's grandchildren include: children of biological brothers, sisters, brothers
+ Persons who must directly bring up other people according to the provisions of law.
* Note: Individuals to be counted as dependents must meet the following conditions:
– Persons of working age must simultaneously satisfy the following conditions:
+ Disabled, unable to work.
+ No income or an average monthly income of the year from all income sources not exceed 1,000,000 VND.
– For people outside the working-age, they must have no income or have an average monthly income in the past year year from all sources of income does not exceed 1,000,000 VND.
– People with disabilities, unable to work (such as AIDS, cancer, chronic kidney failure,...).
For the above dependents, to receive a family circumstance-based deduction, taxpayers must register for a family deduction
See the procedure here: Procedures for registration of deduction for dependents' family circumstances