Current Deduction Amounts (2025)
For the tax year 2025, the family circumstance deduction amounts remain:
| Deduction Type | Monthly Amount (VND) | Annual Amount (VND) |
|---|---|---|
| Personal Deduction | 11,000,000 | 132,000,000 |
| Dependant Deduction | 4,400,000 | 52,800,000 |
These amounts have been in effect since July 1, 2020, and continue through the 2025 tax year.
New Deduction Amounts (2026)
The National Assembly Standing Committee has approved significant increases effective from tax year 2026:
| Deduction Type | Monthly Amount (VND) | Annual Amount (VND) | Increase |
|---|---|---|---|
| Personal Deduction | 15,500,000 | 186,000,000 | +41% |
| Dependant Deduction | 6,200,000 | 74,400,000 | +41% |
Why the Increase?
The adjustment accounts for:
- Cumulative inflation since 2020
- Cost of living increases
- Economic growth and wage adjustments
- Social policy objectives
Impact on Your Taxes
Example: Single Employee
Monthly Salary: 50,000,000 VND
| Tax Year | Monthly Taxable Income | Monthly Tax | Annual Tax |
|---|---|---|---|
| 2025 | 39,000,000 VND | ~6,150,000 VND | ~73,800,000 VND |
| 2026 | 34,500,000 VND | ~4,975,000 VND | ~59,700,000 VND |
| Savings | - | ~1,175,000 VND/month | ~14,100,000 VND/year |
Example: Married with 2 Children
Monthly Salary: 80,000,000 VND Deductions: Personal + 2 dependants
| Tax Year | Monthly Deductions | Monthly Taxable | Monthly Tax |
|---|---|---|---|
| 2025 | 19,800,000 VND | 60,200,000 VND | ~12,100,000 VND |
| 2026 | 27,900,000 VND | 52,100,000 VND | ~9,540,000 VND |
| Savings | - | - | ~2,560,000 VND/month |
Who Qualifies for Deductions
Personal Deduction
All tax residents with employment income qualify for the personal deduction. No registration required.
Dependant Deduction
To claim dependant deductions, the dependant must meet specific criteria:
#### Qualifying Dependants
| Category | Conditions |
|---|---|
| Minor Children | Under 18 years old |
| Student Children | 18-24 years, enrolled in accredited institution |
| Elderly Parents | Over 60 years (male) or 55 years (female), with no income or income below deduction threshold |
| Disabled Family Members | Certified disability with no or limited income |
| Spouse | Unemployed with income below deduction threshold |
#### Registration Requirements
- Submit dependant registration to tax authority
- Provide supporting documents:
- Birth certificates for children - School enrollment letter for students - Disability certificate for disabled members - Proof of relationship
- Each dependant can only be claimed by one taxpayer
How to Claim
Step 1: Register Dependants
Before claiming deductions, register your dependants with the tax authority:
Required Documents:
- Form 02/MST (Dependant registration)
- Birth certificates (copies)
- School enrollment verification (for students)
- Other supporting documents as applicable
Step 2: Provide to Employer
Your employer will calculate deductions in monthly withholding:
- Submit dependant list to HR/payroll
- Employer applies deductions from registration date
- Keep copies of all registration documents
Step 3: Year-End Finalization
During annual finalization:
- Verify all deductions were correctly applied
- Update dependant information if changed
- Claim any deductions not accounted for in monthly withholding
Important Notes for Foreigners
Residency Requirement
Only tax residents can claim family deductions. Non-residents are not eligible.
Foreign Dependents
Foreign family members can qualify as dependants if:
- They reside in Vietnam
- Proper documentation is provided (translated and notarized)
- They meet the qualifying criteria
Cross-Border Situations
If your dependants live outside Vietnam:
- You may still claim them if they meet criteria
- Additional documentation may be required
- Some DTAs may affect eligibility
Planning Tips
- Register early – Don't wait until year-end to register dependants
- Keep records – Maintain all supporting documents
- Update promptly – Report changes in dependant status
- Coordinate with spouse – Decide who claims each dependant for optimal tax outcome
- Review annually – Verify dependant eligibility each year
Need Help?
Our team can help you:
- Determine dependant eligibility
- Prepare and submit registration documents
- Optimize your deduction claims
- File your annual PIT finalization
Contact us via ZALO: +84703027485
This article is based on the National Assembly Standing Committee Resolution on family circumstance deduction adjustments. For official information, please refer to [vbpl.vn](https://vbpl.vn).