Tax ID numbers to be issued to taxpayers’ dependants
Monday, June 03, 2013, 14:54 GMT+7
Tax authorities will issue tax identification numbers to dependants to better control tax payments, according to a new circular of the Finance Ministry that is expected to take effect on July 1.
In order to avoid tax evasion, which may arise from false statements by taxpayers about their dependants, tax offices will now grant tax ID number to all dependants on that day, the effective date of the new personal income tax threshold of VND9 million (US$430). Under the circular, the principle for deductions for family considerations is that taxpayers must obtain a tax ID number by the time of tax calculation, Nguyen Van Phung, deputy head of the Finance Ministry’s Tax Policy Department, said.
He added that the ministry is also completing a decree that will guide the implementation of the revised law on Personal Income Tax to help improve control of tax payments.
Ta Thi Phuong Lan, deputy head of the Department for Personal Income tax Collection Management under the Tax General Department, said tax authorities will automatically grant tax ID number to dependants reported by taxpayers.
That means taxpayers will not have to carry out procedures to obtain tax ID numbers for their dependants, Lan said.
Dependants reported by tax payers on or after July 1 will be eligible for calculations of deductions for family considerations for taxpayers only when those dependants have been granted tax ID numbers.
Dependants who have been reported before July 1 will still be eligible to be included in calculations of deductions for family considerations while waiting for ID numbers to be issued by tax authorities, Lan said.
As previously reported, the new threshold for the personal income tax will be increased from VND4 million to VND9 million per month starting July 1, according to the revised Law on Personal Income Tax. This means only those who earn more than VND9 million per month are required to pay the tax. At the same time, the deduction rate for family considerations will also increase from the current 1.6 million to VND3.6 million ($173) per dependant per month.
