What is a Dependent? How to Apply for a Dependent Deduction

What is a dependent for family deduction? Regulations on documents and registration form for dependent for family deduction? Instructions on how to register, look up dependents… fdiinvietnam.com will answer in detail in the article below. See now!

I. What is a dependent family deduction?

Dependents (D) are people that the personal income tax payer is responsible for supporting and providing for, including:

• Children under the age of majority (under 18 years old); children with disabilities, unable to work;
• People with no income or with income not exceeding 1,000,000 VND/month, including: adult children attending school; spouses who are unable to work; parents who are past working age or unable to work; other individuals without support that the employee must directly support. 

II. Subjects and conditions for registration of dependents for family deduction

The subject registered as a dependent must meet the following conditions:

 

III. Regulations on registration documents for dependents for family deduction

Depending on the specific dependent, different registration documents will need to be prepared, specifically:

➤ For children:

• Children under 18 years old: copy of birth certificate or copy of ID card/CCCD (if any);
• Children aged 18 and over with disabilities or unable to work: copy of ID card/CCCD, copy of disability certificate as prescribed;
• Children studying at school: copy of birth certificate or ID card, copy of student card or school confirmation letter.

➤ For husband or wife:

• Copy of ID card/CCCD;
• Copy of household registration book/marriage certificate;
• In case the spouse is still of working age, a photocopied document proving his/her inability to work must be taken.

➤ For biological parents, parents-in-law or parents-in-law…

• Copy of ID card;
• Household registration book or legal documents to determine the relationship;
• In case of working age, there must be documents proving that the person is disabled or unable to work.

➤ For siblings, grandparents, grandchildren and other individuals directly raising the child:

• Copy of birth certificate or ID card/CCCD;
• Legal documents to prove direct custody, household registration book if sharing household registration;
• Documents proving inability to work if of working age.

➤ For family deduction records for foreigners

• Foreign individuals who want to receive family deductions for dependents must be resident individuals;
• The deduction profile is also carried out like the profile of Vietnamese employees (replace ID card/CCCD with valid passport).

IV. Regulations on time for registration of dependents for family deduction

The time to register dependents for family deductions is at least 10 working days before the date of submitting annual personal income tax finalization dossiers.

In case the dependents are siblings, paternal/maternal grandparents, paternal/maternal aunts, paternal uncles, paternal or maternal nieces, nephews, etc., the deadline for registering a tax code for family deduction is no later than December 31 of the tax year. After this time, the family deduction for that year will not be available.

For example : 
Mr. An wants to register for family deduction for his child, Mr. An authorizes Company B where he works to register for deduction. Company B must register dependent for Mr. An 10 days before submitting the company’s annual personal income tax settlement dossier. In case Mr. An registers for deduction for his brother, the company must register for family deduction before December 31.

V. Instructions for registration procedures for dependents for family deduction

1. How to register a dependent directly at the tax office 

• Individuals can register their dependents directly at the tax authority where they work;
• Currently, individuals cannot register dependents online. Individuals who want to register online must authorize the business where the employee is working;
• When self-registering, individuals need to fully fill in the information of dependents for family deduction in form 20-DK-TCT issued with Circular 105/2020/TT-BTC along with the documents as in section 3 (dependent registration documents), go directly to the tax authority to submit the dependent registration documents.

>> FREE DOWNLOAD: Form 20-DK-TCT – Tax registration declaration.

How to fill out form 20-DK-TCT: 

➤ For cases where there is no dependent tax code 

• First, you check the tax registration section. Then fill in the employee information in section 1 – section 5.
• In section 6 there will be 2 cases as follows: 
  • Case 1: If the dependent already has an ID card/CCCD/passport, fill in the items in “Table I. Dependents register for tax with ID card/CCCD/passport”:

(1) Serial number;

(2) Full name of dependent;

(3) Date of birth of dependent;

(4) Tax code (if any): do not fill in;

(5) Nationality of dependents;

(6) Type of documents such as ID card/CCCD/passport;

(7) ID card/CCCD/Passport number;

(8) Date of issue of ID card/CCCD/passport;

(9) Place of issue of ID card/CCCD/passport;

(10) Permanent address of dependent;

(11) Current address of dependent;

(12) Relationship with the taxpayer, for example: father, mother, child, grandchild…

o   Case 2: If the dependent under 14 years old does not have an ID card/CCCD but only has a birth certificate, fill in the items in “Table II. Dependents register for tax with birth certificate”:

(13) Serial number;

(14) Full name of taxpayer;

(15) Do not fill in;

(16) – (22) Fill in the dependent’s information as stated on the birth certificate such as date of birth, birth certificate number, date of issue, place of registration;

(23) Nationality of dependents;

(24) Relationship with the taxpayer such as: father, mother, grandparents, children, grandchildren…

➤ For cases where there is already a dependent tax code

This case applies to dependents who already have a tax code, the taxpayer wants to report an increase or decrease in dependents or the dependent changes information on the ID card/CCCD/passport.

How to fill out form 20-DK-TCT specifically as follows:

• Check the section on changing tax registration information, fill in items 1 to 5 similar to the case of not having a tax code;
• In section 6 there will be the following 2 cases: 
  • If the dependent has an ID card/CCCD/Passport: fill in table 1 with the same items as in the case of not having a tax code as above, except for item (4), fill in the dependent’s tax code that has been issued;
  • If the dependent is under 14 years old, does not have a CCCD/ID card, and only has a birth certificate: fill in table 2 with the same items as in the case of not having a tax code above, except for item (15), fill in the dependent’s tax code that has been issued.

2. How to register dependents for family deduction online 

• Register at https://thuedientu.gdt.gov.vn;
• Individuals can authorize businesses to register on their behalf for tax codes of dependents;
• Individuals must submit a written authorization to register dependents and documents of dependents, including: a copy of ID card/CCCD or birth certificate for dependents or a copy of passport for dependents with foreign nationality;
• Businesses can register dependents online on the electronic tax website in 2 ways: 
  • Method 1: Prepare registration documents on tax declaration support software (HTKK) and submit to the electronic tax website;
  • Method 2: Prepare and submit documents online on the electronic tax website.

➤ Method 1: Prepare dependent registration form on HTKK and submit to tax page

Step 1 – Enterprises prepare documents on HTKK software

>> If registering using the old form (Form 02TH), prepare documents in the following order:

• Go to the “Personal Income” tax section, select “Register dependents for family deduction”, then select the year and click “Agree”;

• Next, fill in all the information in the table that appears as shown below:

• If the dependent does not have a tax code, fill in “Section I. Registering for a tax code for dependents”, specifically fill in the information in the following sections: 
  • (1) Full name of taxpayer;
  • (2) Taxpayer’s tax code;
  • (3) Full name of dependent;
  • (4) Date of birth of dependent;
  • (5) Dependent’s tax code is not available yet so no need to fill in;
  • (6) Nationality of dependents;
  • (8) Relationship with the taxpayer such as: father, mother, child…;
• If the dependent has an ID card/CCCD/passport, fill in item (7). If under 14 years old and only have a birth certificate, fill in the information on the birth certificate in items (9) to (14) on the table;
• Regarding the time for calculating the deduction, fill in from the month of deduction to the month the deduction ends. If it is not yet clear when the deduction ends, leave the “until month” field blank; 
• If the dependent already has a tax code and needs to change information or increase or decrease the number of dependents for the taxpayer, fill in “Section II”, specifically:
  • (15) Full name of taxpayer;
  • (16) Taxpayer’s tax identification number;
  • (17) Full name of dependent;
  • (19) Tax code of dependents;
  • (22) Relationship with taxpayers; 
• Then fill in the deduction calculation period from month to month, the remaining items do not need to be filled in;
• After filling in the information, click the “Save” button to save and export to XML for submission on the electronic tax page.

>> If registering using the new form (Form 20-DK-TH-TCT), prepare documents in the following order:

• Go to the “Personal Income” tax section, select declaration form 20-DK-TH-TCT, then select the date, then click “Agree”;

• Next, fill in the information in the table that appears as shown below;

• Select “Tax registration”, then fill in section I or section II, specifically: 
  • Section I: For dependents registering for tax with ID card/CCCD/passport:

Fill in dependent information in items (2) to (14);

Section (15) fill in the relationship with the employee (father, mother, brother, sister);

Items (19) and (20) fill in the employee’s name and the employee’s personal tax identification number.

o   Section II: For dependents who do not have an ID card/CCCD/passport:

Fill in the information on the dependent’s birth certificate in items (22) to (31);

Item (32) fill in the relationship with the employee;

Items (33) and (34) fill in the employee information similar to items (19) and (20).

• In case you already have a dependent tax code, check the box “Change tax registration information” instead of “Register tax”. Then, fill in the dependent’s tax code that has been issued and the dependent’s information (information after change);
• After filling out, select “Record” then export to submit on the electronic tax page.

Note:

The disadvantage of this form is that there is no time to deduct from day to day, so the default is from the time of registration. If you want to register with a time to deduct, follow the form 02TH as instructed above.

Step 2 – Enterprises submit documents on the electronic tax website

• Log in to the electronic tax page with the login information of each business;

• Then select “Tax declaration”, then select “Submit XML declaration”, click “Select declaration file”, select the declaration file exported in step 1, then select “Digital signature” and “Submit declaration”;

• After submitting, you should look up the results of dependent registration according to the following steps: 
  • Go to “Tax declaration”, then select “Search declaration”;
  • Then, select the declaration form “02TH – Summary table of registration of dependents for family deduction”;
  • Enter the submission date from which date to which date, then click “Search”.

➤ Method 2: Prepare and submit the application for dependent registration online on the electronic tax website

Step 1 – Log in to the e-tax site

• Go to “Tax registration”, then select “New registration/change personal information via CQCT”, select “Tax registration file” which is form 20-DK-TH-TCT_TT105;

• Then, fill in the information directly on form 20-DK-TH-TCT. The way to fill in this table is similar to the way to fill in form 20-DK-TCT as instructed above.

Step 2 – Submit dependent registration application 

After filling in the information, click on “Complete declaration” to submit the tax registration form to submit the declaration.

 See more:  How to register and look up tax code of dependents.

VI. Frequently asked questions when registering dependents for family deductions