On October 28, 2020, the General Department of Taxation issued Official Letter No.4590/TCT-DNNCN guiding the policy of deduction for family circumstance for foreigners.
Pursuant to the Law on Personal income tax (“PIT”) 04/2007/QH12 (which was amended and supplemented under Law 26/2012/QH13), Circular 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance, Resolution No.954/2020 /UBTVQH14 dated June 2, 2020 of the Standing Committee of the National Assembly on adjusting of family circumstance deductions for PIT, in case
taxpayer is foreign expert working in Vietnam as
a resident individual when making tax finalization for the first year (from July 2019 to June 2020), the period is from
July 2019 to December 2019, applying the family circumstance deductions of VND
9 million/month/taxpayer and VND
3,6 million/month/dependent, from
January 2020 to June 2020, the new amount of VND
11 million/month/taxpayer and
4,4 million VND/month/dependent.