blue-check There is no limit on number of dependants for the purpose of family circumstances - based deduction

Official letter No. 2071/CT-TTHT dated March 11th, 2019 of the Department of Taxation of Ha Noi city regarding family circumstances - based deduction
Posted: 31/7/2019 7:55:00 AM | Latest updated: 7/8/2019 1:59:19 PM (GMT+7) | LuatVietnam: 4768 | Vietlaw: 419

According to point d.4.4 Clause 1 Article 9 of Circular No. 111/2013/TT-BTCstatus2 , such dependants as brothers and sisters, grandparents, aunts, uncles, nieces and nephews, etc. family circumstances - based deduction shall be applied only when they “no longer have the refuge”.

Accordingly, in case a taxpayer’s brothers/sisters, nieces/nephews still have parents who are within the working age with good health (the dependants still have the refuge), this case is not eligible for family circumstances - based deduction.

Similarly, the taxpayer’s grandparents, aunts, uncles shall also not be considered to be dependants when they still live with their spouse, children, sisters, brothers as the refuge.

Currently, Circular No. 111/2013/TT-BTCstatus2 does not regulate the limit on number of dependants eligible for family circumstances - based deduction. As the result, employees may register many dependants for family circumstances - based deduction provided that the conditions on dependants are met.

Ms. Phuong Thao (
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PublishedVietlaw's Newsletter No. 419
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