INCREASE DEDUCTION FOR THE FAMILY CIRCUMSTANCE FROM 2020
Recently, the National Assembly Standing Committee has enacted Resolution No 954/2020 /UBTVQH14, this is new that workers are extremely looking forward to, the resolution stipulates the adjustment of family circumstance deductions of personal income tax (PIT).
The resolution has adjusted deduction for family circumstances below:
– The deduction level for Taxpayers is 11 million VND/ month (132 million VND/ year).
– The deduction level for each Dependent is 4.4 million VND/ month.
So, the deduction level for Taxpayers increased by 2 million VND / month and the deduction for each dependent increased by 0.8 million VND/ month compared to the old rule.
The resolution will take effect from July 1st, 2020 and will be applied from the 2020 Tax period.
In the Companies’ case, those workers who had temporarily paid personal income tax at the family circumstance deductions old level (9 million VND/ month for Taxpayers and 3.2 million VNlD / month for each dependent) will be re-determined the payable personal income tax amount according to the new deduction for family circumstance level when Tax finalization in 2020 (time of Tax finalization: on March 2021).
The above adjustment of the deduction for family circumstances will reduce difficulties for Taxpayers in the time of rising prices and inflation. The tax payable will be reduced for all Taxpayers.
More specifically, workers will reduce anxiety in the situation of disease COVID – 19 due to economic difficulties at this moment.