PROCEDURES FOR REGISTRATION OF DEPENDENT FOR PERSONAL DEDUCTION

Tax is a mandatory revenue into the State budget, clearly regulated by law for economic organizations and members of society. Individuals in the prescribed cases must pay personal income tax. However, the law of Vietnam also stipulates the issue of dependent registration for personal deduction to help reduce the personal income tax burden based on the number of dependent that person is raising or taking care of. So how is the procedure for registering dependents for personal deduction for the first time?

1. What is a dependent for personal deduction?

A dependent is a person that a personal income tax payer is responsible for nurturing and supporting, including:

– Underage children (under 18 years old); Children have disabilities and are unable to work;

– People with no income or with income not exceeding VND 1,000,000/month, including: adult children attending school; spouse is unable to work; Parents have reached the end of working age or are unable to work; Other individuals are helpless and must be directly cared for by workers.

Personal deduction is the amount deducted from taxable income before calculating tax on income from business, income from salaries, wages of taxpayers who are resident individuals.

2. Application for registration of dependent for personal deduction

a. In case an individual authorizes an income-paying agency to register for tax:

– Authorization documents;

– Documents of dependents (copy of Citizen Identification Card or copy of valid Identity Card for dependents with Vietnamese nationality aged 14 years or older; copy of Birth Certificate or copy Valid passport for dependents with Vietnamese nationality under 14 years old; copy of Passport for dependents with foreign nationality or Vietnamese nationals living abroad).

– Tax registration declaration.

b. In case an individual does not authorize the income-paying agency to register for tax for dependent:

– Tax registration declaration;

– Legal documents of dependents (Copy of Citizen Identification Card or copy of valid Identity Card for dependents with Vietnamese nationality aged 14 years or older; copy of Birth Certificate or Valid passport for dependents with Vietnamese nationality under 14 years old; copy of valid passport for dependents with foreign nationality or Vietnamese nationals living abroad).

>> DO NON-RESIDENT INDIVIDUAL HAVE TO PAY PERSONAL INCOME TAX? https://linconlaw.vn/do-non-resident-individual-have-to-pay-personal-income-tax/

3. Procedures for registering dependent for personal deduction

a. In case an individual authorizes an income-paying agency to register for tax:

Taxpayers who pay tax through income-paying organizations or individuals submit 02 (two) sets of dependent registration documents and documents proving dependents at the income-paying organization or individual;

Organizations and individuals paying income keep one (01) registration copy and submit one (01) registration copy to the directly managing tax agency.

Application deadline:

– Taxpayers submit documents to income-paying organizations or individuals at the latest before the tax declaration deadline or before submitting tax finalization documents of income-paying organizations or individuals.

– Organizations and individuals paying income submit documents to the tax authority at the same time as submitting tax declaration documents for that tax period.

b. In case an individual does not authorize the income-paying agency to register for tax for dependent:

Individuals submit dependent registration documents to directly managed tax agencies.

Application deadline:

– The individual submits the same time as submitting the personal income tax return of that tax period, or;

– Submitting at the same time with submitting tax finalization documents.

4. Method to submit dependent registration application

Taxpayers can submit documents directly to the competent tax authority, send documents via postal service or submit on the tax authority’s electronic information portal.

Tax authorities do not have to return results to taxpayers.