According to Resolution No. 954/2020 / UBTVQH14 signed on June 2, 2020, by National Assembly Chairman Nguyen Thi Kim Ngan on increasing the level of family circumstance-based reduction in calculating personal income tax.
The Resolution has adjusted the level of family circumstance-based reduction prescribed in the Law on Personal Income Tax as follows:
- The new deduction level for taxpayers is 11 million dong/month (132 million dong/year);
- The new deduction level for each dependant is 4.4 million / month.
Thus, the deduction level for taxpayers increased by VND 2 million / month, and the reduction level for each dependent increased by VND 0.8 million / month compared to the previous regulation.
The official resolution takes effect from July 1, 2020, and applies from the 2020 tax period.
Cases of temporary tax payment according to the old family circumstance-based reduction level specified in Clause 1, Article 19 of the 2007 Law on Personal Income Tax (amended in 2012) will be re-defined the payable PIT amount according to the new level of family circumstance-based reduction specified in this latest resolution when making PIT finalization in 2020.