Tax management

Family dependent registration procedure from 1 January 2023

Decision No. 40/QD-BTC dated 13 January 2023 by the Ministry of Finance announces revised/supplemented administrative procedures, with instructions on two (02) procedures to be amended from 1 January 2023 according to Circular No. 79/2022/TT-BTC, of which, notably, is the procedure for dependent registration:

For individuals paying Personal Income Tax (PIT) through an income-paying organization: Submit two (02) sets of dependent registration dossiers to the income-paying organization before a tax period’s declaration deadline (or before the organization submits its yearly finalization PIT returns). The income- paying organization shall retain 01 set and submit 01 set to the tax authority together with the PIT returns of that given tax period (or together with the yearly PIT finalization returns).

For individuals who declare and pay PIT directly: Submit a family dependent registration dossier to the managing tax authority when submitting the PIT return of a tax period or the PIT finalization returns. Regarding dependents that are not children (such as brothers, sisters, grandparents, aunts, and so on) specified in Item d.4, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC, the deadline for registration is no later than 31 December of a tax year.

For dependent deduction, in case of a change of number of dependents, or the tax payer switches to a new employer, they must re-register their dependents (documentation, deadline, and procedure are the same as those of first registration).

Within 03 months from the date of first registration, the taxpayer must submit a proof-of-relation observing Article 1 of Circular No. 79/2022/TT-BTC to the income-paying organization or the managing tax authority whom they submit their dependent registration dossier.

The Decision takes effect from 01 January 2023.


Labor, labor salary

Support policy for laborers who lose their jobs, have their work hours reduced, or labor contract terminated by enterprises with reduced orders

The General Confederation of Labor issued Decision No. 6696/QD-TLD on 16 January 2023 regarding policies to support union members and employees (working at a unionized enterprise before 30 September 2022) that have their work hours reduced, labor contracts terminated due to the enterprise’s outside orders being cut. Details are as follows:

Conditions to receive support

  • Union members and employees, working under labor contracts at enterprises that have paid trade union premiums before 30 September 2022, who have their work hours reduced or labor contract terminated due to the enterprises’ orders being cut;
  • Employees whose daily work hours/number of working days in a week/month (excluding overtime reduction) was reduced, or put on leave for 14 days or more in a month, from 1 October 2022 to 31 March 2023;
  • From 01 October 2020 to 31 March 2023: Employees whose income for an arbitrary month is lower than or equal to the region minimum wage.
  • The applicable period must be from 01 October 2022 to 31 March 2023.

Cash support

  • Employees who are union members, employees who are not union members but are women aged of 35 or older, pregnant women, employees who are raising their biological/adopted children or rearing children under 6 years old (support given only to 01 person: mother or father or substitute carer): VND 1,000,000;
  • Employees who are not union members: VND 700,000


Support policy for entities affected by the Covid-19 pandemic

Reducing land and water surface rents for entities affected by Covid-19 pandemic

Decision No. 01/2023/QD-TTg issued by the Prime Minister on 31 January 2023 stipulating reduction of land and water surface rents for entities affected by the Covid-19 pandemic: Accordingly, the reduction of land and water surface rents is as follows: 30% reduction of land and water surface rent payable in 2022 for land and water surface tenants specified in Article 2 of Decision No. 01/2023/QD-TTg.

In case the land/water surface lessee is entitled to a reduction of land and water surface rents, and/or deduction of rents from ground clearance compensation in accordance with the law on land and water surface rent: 30% reduction of land/water surface rents, calculated on the payable land/water surface rents (if any) after the reduction and/or deduction from ground clearance compensation has been applied.

Note: No reduction shall be made on the outstanding amount of the years before 2022 and any late payment interests. Decision No. 01/2023/QD-TTg takes effect on 31 January 2023.