The Resolution prescribes taxpayer’s personal and family circumstance deduction level prescribed in clause 1 of Article 19 in the 2007 Law on Personal Income Tax (already amended and supplemented by the 2012 revised Law on Personal Income Tax) will be subject to the following adjustments:
- Taxpayer’s personal deduction level will be VND 11 million/month (equivalent to VND 132 million/year).
Now, taxpayer’s personal deduction level is VND 9 million/month (equivalent to VND 108 million/year).
- Family circumstance deduction level per a taxpayer’s dependent will be VND 4.4 million/month.
Now, family circumstance deduction level per a taxpayer’s dependent is VND 3.6 million/month.
So, regulations about to take effect will increase taxpayer’s personal deduction by VND 2 million/month, and taxpayer’s dependent deduction by VND 800,000/month.
Tax amounts already paid at the current personal and family circumstance deduction level will be re-computed at the new level stipulated in the Resolution No. 954/2020/UBTVQH14 when carrying out the 2020 PIT finalization procedures.
The Resolution No. 954/2020/UBTVQH14 is set to take effect on July 1, 2020, applying from the tax term of 2020.
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