Can a wife without income get a family deduction?

When paying PIT, taxpayers are usually concerned about the family deduction for dependents. So if the wife is a homemaker taking care of the family with no income, is the husband entitled to a family deduction? Together with Tasco Tax Consulting Services Co., Ltd. learn about this issue through the article "Does a wife without income get a family deduction"

 

 

What is a family deduction?

Family deduction is an amount deducted from taxable income before taxation for income from business, salary, or wages of taxpayers who are resident individuals

Who do dependents include?

According to Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC, dependents include:

 

d.1) Children: natural children, legally adopted children, illegitimate children, stepchildren of wives, stepchildren of husbands, specifically including:

d.1.1) Children under 18 years old (calculated by month). Example 10: Mr. H's child born on July 25, 2014, is counted as a dependent from July 2014.

d.1.2) Children aged 18 years or older who have disabilities or are unable to work.

d.1.3) Children studying in Vietnam or abroad at university, college, professional or vocational secondary school, including children aged 18 years or older who are studying at upper secondary education level (including while waiting for university examination results from June to September of grade 12) have no income or have an average monthly income in a year from all The source of income does not exceed VND 1,000,000.

d.2) The spouse of the taxpayer satisfies the conditions at Point đ, Clause 1 of this Article.

d.3) Biological father and mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; adoptive parents and lawful adoptive mothers of taxpayers who satisfy the conditions at Point đ, Clause 1 of this Article.
....

 

 

According to Point đ, Clause 1, Article 9 of Circular 111/2013/TT-BTC, individuals are counted as dependents according to the instructions in Sections d.2, d.3, d.4, Point d, Clause 1, this Article must meet the following conditions:

đ) Individuals who are counted as dependents according to the instructions in Sections d.2, d.3, d.4, Point d, Clause 1 of this Article must satisfy the following conditions:

đ.1) For persons of working age, the following conditions must be simultaneously satisfied:

đ.1.1) Being disabled or unable to work.

đ.1.2) No income or average monthly income in a year from all sources of income not exceeding VND 1,000,000.

đ.2) For persons outside working age, they must have no income or have an average monthly income in a year from all sources of income not exceeding VND 1,000,000.

 

 

Does a wife with no income count as a family deduction?

According to Point d, Clause 1, Article 9 of Circular 111/2013/TT-BTC, wives are subject to deduction from their husband's family situation. However, a wife is only entitled to a family deduction when the following conditions are met:

- If the wife is of working age, 02 following conditions must be met:

+ Have a disability or wife is incapable of working;

+ No income or income but the average level is less than 01 million VND;

- If the wife is outside of working age, she must have no income or have an average income below VND 01 million.
Thus, in case the wife does not work, she is not automatically entitled to a family deduction, but must meet one of the following two conditions:

Case 1: The wife is of working age with disabilities or inability to work and has no income or has but less than 01 million VND.

Case 2: The wife has reached the end of working age and has no income or has but less than 01 million VND.

 

The latest 2024 family deduction

Under Resolution 954/2020/UBTVQH14, the family situation deduction is prescribed as follows:

•   For taxpayers: 11 million VND/month (132 million VND/year).
•    For dependents: 4.4 million VND/month (52.8 million VND/year).

Latest family deduction level in 2024:
According to the Resolution of the regular Government meeting in January 2024. The Government has assigned the Ministry of Finance to study and propose adjusting the family deduction in personal income tax calculation. Specifically, the Ministry of Finance should:

•    Synchronous and effective solutions on taxes, and fees promulgated by competent authorities;
•    Propose and report to competent agencies policies on exemption, reduction, and extension that need to be applied in the coming time.
•    Research and propose the Government adjusts the PIT family deduction to support and remove difficulties in people's lives.
 

How much does a wife with no income count as a family deduction?

Currently, the family situation deduction for the case of the wife not working is specified in Article 1 of Resolution 954/2020/UBTVQH14.

Accordingly, the family deduction for non-working wives who are dependents of taxpayers is VND 4.4 million/month.
 

 

 

Latest Family Deduction Procedure 2024

Procedures for registration of family situation deduction are specified in Article 9 of Circular 111/2013/TT-BTC (amended and supplemented by Circular 92/2015/TT-BTC):

For taxpayers with income from wages and wages

•    First-time dependent registration
The taxpayer registers dependents according to the form and submits two 02 copies to the income-paying organization or individual;

Income-paying organizations and individuals keep 01 copy and submit 01 registration copy to the tax authority at the same time as submitting the PIT return of the tax declaration period;
If the individual directly declares 01 dependent registration form according to the form to the agency at the same time as submitting the PIT return of the tax return period.

•    Register changes about dependents:
When there is a change (increase or decrease) of dependents, the taxpayer declares additional information about the change in the form and submits it to the organization, an individual paying the income or tax authority.

•    Deadline for submitting documents proving dependents:
The deadline for submitting documents proving dependents is 03 months from the date of submission of the dependent registration declaration.

For taxpayers with income from business

Individuals register dependents according to the form and submit them to the tax authority directly managing them along with the tax provisional return. When there is a change (increase or decrease) of dependents, the taxpayer adds the changed information according to the form and submits it to the tax authority directly managing it.

Individuals pay taxes by the method of deducting family deductions for dependents according to the stock tax return.
The deadline for submitting documents proving dependents is three 03 months from the date of declaration of family deduction.
Taxpayers only need to register and submit documents proving dependents once during the family deduction calculation period. If changing the place of work or business, register and submit supporting documents such as registration of dependents for the first time.

Personal income tax finalization is an individual's determination of full tax liability for one year, an individual's tax period with the state budget. "PIT finalization service" of the TASCO Tax Agent will advise and support customers to prepare necessary tax finalization documents according to regulations. Tasco's PIT finalization service is currently the most prestigious, quality, efficient, and economical service in Ho Chi Minh City.
 

Or you can immediately call the hotline at 0975480868 or text Zalo at 0705955325 for Tasco to consult for free!!

Above is the article to answer the question Wife without income, can she get a family deduction? Hope the cover will bring you useful information. Thanks for watching.

 

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