YouMe Law Company Limited said: The family circumstance deduction for personal income tax finalization in 2025 in 2026 is regulated in Article 12 of Decree 65/2013/ND-CP amended by Article 1 of Resolution 954/2020/UBTVQH14.
Accordingly, the deduction level for taxpayers is 11 million VND/month (132 million VND/year);
The deduction for each dependent is 4.4 million VND/month.
Thus, taxpayers only have to pay personal income tax when taxable income arises.
This means that after deducting the tax exemptions and reductions, if the taxable income exceeds 11 million VND/month (equivalent to over 132 million VND/year), then it is subject to tax payment.
In addition, according to the provisions of Clause 2, Article 8 of the 2007 Personal Income Tax Law (effective until June 30, 2026) and Article 28 of Circular 111/2013/TT-BTC, the cases eligible for personal income tax refund, specifically including the following cases:
Having paid a tax amount greater than the actual tax payable: After tax finalization, if the total amount of personal income tax paid in the year is greater than the tax payable according to regulations, the individual is refunded the surpaid tax.
Taxable income below the taxable level, but tax obligations have arisen and tax has been paid: In case an individual in the financial year has not reached the taxable threshold but has been deducted tax at source for many reasons (such as short-term work, irregular income, etc.), the tax paid will be refunded after settlement.
Cases of tax refunds according to decisions of competent state agencies: Including other special cases prescribed by law or according to separate decisions of tax authorities or state agencies.
Note that the individual has registered and has a tax identification number at the time of submitting the tax finalization dossier.
Individuals are required to have a tax identification number before submitting a tax refund application. If they have not registered and been granted a tax identification number before tax refund, the tax authority will not handle the tax refund procedure.
The tax authority does not automatically refund taxes to individuals without a request.
Suppose the total taxable income is 178,724,000 VND, total compulsory insurance premium paid: 6,741,000 VND, number of dependents: 0, amount of personal income tax deducted: 2,106,680 VND.
Accordingly, the personal income tax refund for 2025 in 2026 is calculated as follows:
Personal deduction = 12 x 11,000,000 VND = 132,000,000 VND.
Deduction for dependents = 6,200,000 x 0 x 0 = 0 VND.
Total taxable income per year:
= 178,724,000 - 6,741,000 - 132,000,000 - 0 = 39,983,000 VND.
Monthly taxable income:
= 39,983,000 / 12 = 3,331,917 VND.
Monthly personal income tax payable:
= 3. 331. 917 x 5% - 0 = 166. 596 VND.
The amount of personal income tax payable annually:
= 166. 596 x 12 = 1. 999. 150 VND.
The amount of personal income tax refunded in 2025 in 2026:
= 2. 106. 680 - 1. 999. 150 = 107. 530 VND.
Thus, for the above case, taxpayers are refunded VND 107,530 in 2025 in 2026.
