A taxpayer in 2022 has 2 sources of income at 2 companies: from February to May 2022, working at an engineering company with family deductions for himself and 2 dependents (2 biological children); from August to December 2022, working at another company with family deductions for himself and 2 dependents (2 biological children).

The taxpayer asked: " I have registered my tax codes for my two dependent children in 2018. When I finalize my personal income tax (PIT) for 2022, can I calculate the deduction for these two dependents from January to December 2022 (full 12 months)?"

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Article 9 of Circular No. 111 dated August 15, 2013 of the Minister of Finance stipulates family deductions when calculating personal income tax. Photo: Nam Khanh

In this case, the Ministry of Finance cited Article 9 of Circular No. 111 dated August 15, 2013 of the Minister of Finance regulating deductions.

Accordingly, deductions are amounts deducted from an individual's taxable income before determining taxable income from salaries, wages, and business.

Regarding the principle of calculating family deductions for dependents: Taxpayers are entitled to family deductions for dependents if they have registered for tax and been granted a tax code.

When a taxpayer registers for family deductions for dependents, the tax authority will issue a tax code for the dependent and the family deduction will be provisionally calculated for the year from the date of registration.

In case the taxpayer has not calculated family deductions for dependents in the tax year, the deductions for dependents will be calculated from the month in which the obligation to support arises when the taxpayer makes tax finalization and registers family deductions for dependents.

Each dependent is only deducted once for one taxpayer in the tax year. In case multiple taxpayers have the same dependent to support, the taxpayers must agree to register the family deduction for one taxpayer.

“Based on current regulations, in case the taxpayer has not calculated family deductions for dependents who are biological children in the tax year, the family deductions for dependents will be calculated from the month when the obligation to support arises when the taxpayer makes tax finalization and registers family deductions for dependents,” the Ministry of Finance replied.

Thus, the above taxpayer case is entitled to deductions for 2 dependents from January to December 2022 (full 12 months).