On June 2, 2020, the National Assembly Standing Committee issued Resolution 954/2020/UBTVQH14 on adjusting and increasing the deduction for personal income tax from 9 to 11 million dong.
Specifically, the adjustment of the deduction for family circumstances specified in the Law on Personal Income Tax 2007 and the revised Personal Income Tax Law 2012 is as follows:
– The deduction for taxpayers is 11 million VND/month (132 million VND/year);
– The deduction for each dependent is 4.4 million VND/month.
The cases that have temporarily paid tax according to the family deduction rate prescribed in the Law on Personal Income Tax 2007 and the Law on Personal Income Tax as amended in 2012 may have their personal income tax re-determined according to the family deduction level. specified in Resolution 954/2020/UBTVQH14 when finalizing personal income tax in 2020. The resolution takes effect from 1 July 2020 and is applicable for the tax year 2020.