Hi, I will be earning in VN. But I have substantial living expenses in foreign like for example providing for medical expenses for my mother. Anyone knows if VN tax agency allows deductions from taxable income due to expenses that accrued in foreign?
Also, are tax deductions for income tax important? Because I heard that my income will be taxed at around 35% which is massive. So, I wonder if I will be able to make deductions on taxable income.
Thxs for inputs.
Income Tax
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The search function on this site is terrible but a quick search for "income tax" yielded this thread: https://www.expat.com/forum/viewtopic.php?id=893600 In particular check the link in post #3.
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Thank you THIGV, very helpful. Reviewing the doc, I stumbled on this one:
For taxpayer's dependents: VND3.6 million per month for each qualifying dependent (if required documents are submitted).
Anyone knows who is a qualifying dependent? Or where I can find info on it? Does the dependent necessarily need to reside in VN?
Thxs
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danrodri wrote:Thank you THIGV, very helpful. Reviewing the doc, I stumbled on this one:
For taxpayer's dependents: VND3.6 million per month for each qualifying dependent (if required documents are submitted).
Anyone knows who is a qualifying dependent? Or where I can find info on it? Does the dependent necessarily need to reside in VN?
Thxs
Consider sending a private message to this forum member:
expat.com/forum/profile.php?id=1249645&lang=en
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OceanBeach92107 wrote:Consider sending a private message to this forum member:
expat.com/forum/profile.php?id=1249645&lang=en
This young lady has provided helpful advice on this forum in the past. I must confess that she has given me free advice in the past and a referral to a legal specialist. I believe that she is no longer a paralegal but a full fledged lawyer now. Any direct contact asking for advice now should probably include an offer to accept her billing. She may simply refer you to someone else such as a tax specialist and of course that would be gratis.
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Hi,
Just in case you still need the information of tax deduction, I can provide to you briefly as below:
1 tax payer can be allowed to deduct personal tax relief (now VND11,000,000 per month), dependent tax relief (now VND4,400,000 per month per qualified dependent), compulsory contribution (such like Social Insurance, Health Insurance or Unemployment insurance) in home or host country (probably Vietnam) from his taxable income, only if he is the Vietnam tax resident.
Hence, the dependent relief are restricted with requirements before deductions. You must submit the registration form and wait for tax authority confirmation in order to actually deduct relief from your taxable income.
The requirement for dependent relief for direct dependents (this is most of the cases) can be brief as follows:
- Parents must be over the retirement age otherwise they must be proven as disability , for both cases their monthly income must not exceed VND1,000,000 per month.
- Children under 18 yo; or over 18 yo and is studying in university, no income or income is not exceed VND1,000,000 per month
For your case, the accrued medical expense for your mother in oversea will be not considered as deduction for Vietnam tax purpose.
Hope this will help. Please feel free to reach out, I will reply your concern as much as possible.
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