Answer:
The PIT Law has not yet covered any limitation on the number of registered dependents of a taxpayer as long as they fully meet the following conditions:
- Dependents must be one of the following[1]:
- Children include biological children, lawfully adopted children, illegitimate children, each spouse’s separate children, specifically:
- Children under 18 years old (calculated in full month);
- Children over 18 years of age who are disabled, unable to work; and
- Children who are studying in Vietnam or abroad for university, college, professional secondary school, or vocational training school, including children aged 18 and older who are studying at high school (including the time of awaiting college entrance exams after 12th grade from June to September) have no income or an average income of no more than VND1,000,000 per month from all income sources.
- Taxpayer’s spouse; biological parents; father-in-law, mother-in-law (of a spouse); stepfather, stepmother; lawful adoptive parents of a taxpayer; and other helpless individuals that taxpayers are directly responsible for supporting (siblings of any taxpayers; paternal grandfathers, grandmothers; maternal grandfathers, grandmothers; maternal and paternal aunts and maternal and paternal aunts of taxpayers; nephews and nieces of taxpayers, including the children of the taxpayer’s siblings, and other persons under direct nurture by a taxpayer in accordance with the law), meet the following conditions:
- For persons of working age, the following conditions must be met: (i) being handicapped and unable to work; and (ii) having no income or having average monthly income of no more than VND1,000,000 in the year from all income sources; and
- For persons outside working age, having no income or having an average monthly income of no more than VND1,000,000 in the year from all income sources.
- Children include biological children, lawfully adopted children, illegitimate children, each spouse’s separate children, specifically:
- Each dependent is only eligible to be deducted once per taxpayer in the tax year. Where many taxpayers have dependents under common nurture, they will have to reach an internal agreement on registering a tax reduction on a taxpayer due to family situations[2].
[1] Article 9.1 (d) and (đ) of Circular 111/2013/TT-BTC Ministry of Finance dated 15 August 2013 as amended and supplemented by Article 25.6 of Circular 92/2015/TT-BTC dated 15 June 2015.
[2]Article 9.1 (c.2.4) of Circular 111/2013/TT-BTC Ministry of Finance dated 15 August 2013
