Family circumstance-based deduction for personal income tax increases from July

Thursday, 2020-06-04 12:43:16
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Monthly taxable personal income will be raised from this July. (Photo: Hanoi Tax Department)
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NDO – Starting from July, the family circumstance-based deduction level for each dependent of taxpayers will increase from VND3.6 million (US$155.8) per month to VND4.4 million (US$189.2) per month.

That is set out in Resolution No. 954/2020/UBTVQH14, issued by the National Assembly Standing Committee on June 2, outlining the increase in the family circumstance-based reduction for personal income tax.

Accordingly, the relevant monthly taxable personal income will be raised from VND9 million to VND11 million, equivalent to VND132 million per year.

The deduction level for each taxpayer’s dependent is now set at VND4.4 million per month, equivalent to VND52.8 million per year. The current regulations set this deduction at VND3.6 million per month, equivalent to VND43.2 million per year.

The resolution takes effect on July 1, 2020 and is applicable to the 2020 tax period.