The Ministry of Finance's electronic information portal recently posted a question from reader Nguyen Thi H. saying that her biological mother is 90 years old this year. Currently, Ms. H. works at a state agency. She wondered if she could register her biological mother as a dependent to reduce family deductions.
Ms. H. shared that her biological mother was receiving subsidies including: preferential treatment for meritorious people, death benefits, and elderly allowances.
The total of the subsidies is about 4 million VND.
Apart from the above policy subsidies, my mother has no other source of income from salary and wages.
Responding to this case, the tax authority said that at Point d.1 and Point d.2 Clause 1, Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013, guiding the implementation of the Law on Personal Income Tax of the Ministry of Finance.
Accordingly, mothers born outside of working age are identified as dependents to register for family deductions for taxpayers when they do not have income or have an average monthly income during the year from all sources of income not exceeding 1 million VND.
Income under this regulation is determined to be income from sources, excluding death benefits, subsidies, and incentives. Therefore, in the case of a reader whose mother is 90 years old this year and receives monthly allowances as stated by the reader, specifically about 4 million VND/month, it does not meet the conditions to register a dependent for family deduction.
