On March 20, 2024, the Hanoi Tax Department issued Official Letter No. 13382/CTHN-TTHT ("Official Letter 13382") providing detailed guidance on the registration process for dependent family deductions, including biological parents, step-parents, adoptive parents, and legal guardians of the taxpayer.
Official Letter 13382 highlights the following points:
1. Exemption from submitting direct caregiver information in the dependent certification process:
In cases where the taxpayer applies for family deductions for dependents such as biological parents, step-parents, adoptive parents, legal guardians, they need to provide the following documentation:
- A copy of the Citizen Identity Card or Resident Identity Card.
- Legal documents establishing the relationship between the dependent and the taxpayer, such as a copy of the Residence Confirmation or Personal Identification Number Notification and Information from the National Population Database, or other documents issued by authorized State agencies, birth certificates, decisions recognizing parental relationships issued by competent State authorities.
Additionally, for dependents of working age, besides the above-mentioned documents, the certification process should include documents proving disability or incapacity for work, such as a copy of the Disability Certificate as per the laws on disabled persons for those unable to work, or a copy of medical records for those suffering from diseases that render them unable to work (such as AIDS, cancer, chronic kidney disease, etc.).
Furthermore, taxpayers are not required to submit or declare information about the direct caregivers using Form 07/XN-NPT-TNCN as per Circular 81/2021/TT-BTC when submitting the dependent certification documents.
2. Deductible period for dependent family members determined from the incurrence of caregiving obligation, not dependent on the registration time:
According to the detailed guidance in Official Letter 13382, if the taxpayer has a caregiving obligation before registering for family deductions, the deduction for dependents will be calculated from the time the caregiving obligation arises, irrespective of the registration time.
Comment: