The Ministry of Justice has recently released an assessment document for the draft Decree detailing provisions of the Tax Administration Law. Notably, the Ministry of Finance has proposed eliminating the dependent registration file for individuals earning income from salaries and wages when filing personal income tax (PIT).
According to the draft, the dependent registration procedure will be integrated into the initial tax registration process. Taxpayers can register dependent information simultaneously during their tax registration to qualify for family circumstance deductions, eliminating the need for separate submissions as currently required.
The Ministry of Finance highlights that existing regulations mandate taxpayers to submit the “Dependent Registration Form” (Form No. 07/ĐK-NPT-TNCN) and the “Dependent Registration Summary Appendix” (Form No. 07/THĐK-NPT-TNCN). This redundancy creates unnecessary procedures and delays for both citizens and tax authorities.
By consolidating the process into tax registration, dependent information will be verified through the National Population Database using personal identification codes. Relationships such as parents, spouses, and children will be cross-checked online by tax authorities, eliminating manual paperwork.
However, special cases—such as dependents with disabilities, those without legal guardians, or individuals lacking digital identification—will still require manual file submissions as per current regulations.
The proposal specifies that the “dependent registration file” section in Appendix I of Decree 126/2020/NĐ-CP will be removed, effectively discontinuing Forms 07/ĐK-NPT-TNCN and 07/THĐK-NPT-TNCN as separate procedures.
Under current regulations, the family circumstance deduction for taxpayers is 11 million VND/month, with an additional 4.4 million VND/month per eligible dependent.
This streamlining is expected to save taxpayers time, reduce redundant filings, and enhance the accuracy of the National Population Database for tax management.
Previously, the Ministry of Finance submitted a draft Resolution to the National Assembly Standing Committee to adjust family circumstance deductions for PIT, effective from the 2026 tax year. Current regulations (Resolution 954/2020/UBTVQH14) set deductions at 11 million VND/month for taxpayers (132 million VND/year) and 4.4 million VND/month per dependent—unchanged since 2020.
Per regulations, when the Consumer Price Index (CPI) fluctuates by over 20% since the last adjustment, the Ministry of Finance may propose revisions to align deductions with actual living costs. Since 2020, the CPI has risen over 20%, prompting the Ministry to present two adjustment options in the draft.
Option 1 increases the taxpayer deduction to 13.3 million VND/month (159.6 million VND/year) and the dependent deduction to 5.3 million VND/month.
Option 2 proposes more substantial increases: 15.5 million VND/month for taxpayers (186 million VND/year) and 6.2 million VND/month per dependent. The Ministry favors this option as it better reflects current average living standards and incomes.
Withdraw Tax Filing Proposals Upon Receipt of Stock Dividends
The Ministry of Finance has maintained its stance on dividend and bonus taxation, requiring payment upon transfer rather than at the time of receipt, as previously suggested months ago.
Preventing Abuse of Tax Debt Cancellation Policies
To address the persistent issue of unrecoverable tax arrears, the Ministry of Finance has proposed writing off tax debts over 10 years old while expanding travel bans for businesses with outstanding tax liabilities. However, experts caution that tax debt forgiveness requires careful consideration.
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