Businesses refuse family deduction dossiers even though tax authorities have approved
With questions sent to the Tax Department, Mr. N.C.H (an employee of a business in Gia Lai) expressed his frustration with the rigid regulations of the personnel department at the company. According to his sharing, since 2017, he has applied for family circumstance reduction for dependents including his aunt and two children of his aunt (nephews). Both of these grandchildren are severely disabled, have limited cognitive abilities, are poor households, have no income and are directly raised by him. His aunt is also completely homeless, and is a poor household.
This dossier was approved by the Gia Lai provincial tax authority and then the Hanoi tax authority (when he transferred to another job), applying continuous deductions until mid-2025. However, when Mr. H. transferred back to his old company in Gia Lai in July 2025, the finance and accounting department here refused the dossier for the two children of his aunt without giving a reason.
Legal documents such as Circular 111/2013/TT-BTC are still in effect and my dossier is fully documented and certified by the local authorities. Is the company's arbitrary revocation of my family deduction benefits correct or wrong?" - Mr. H. shared.
Detailed guidance from tax authorities on subjects and supporting documents
Faced with the difficulties of workers, representatives of Gia Lai Provincial Tax Department have given specific and clear feedback based on current legal regulations on Personal Income Tax (PIT) to remove obstacles for businesses and taxpayers.
Based on the provisions of Circular No. 111/2013/TT-BTC of the Ministry of Finance, relatives (children of brothers, sisters, siblings) and other individuals such as aunts, uncles, uncles who have no place to rely on but are being directly supported by taxpayers are completely eligible to be counted as dependents. The accompanying condition is that people of working age must be disabled, unable to work; or people outside working age have an average monthly income in the year from all sources not exceeding 1,000,000 VND.
For cases of changing workplaces, the Gia Lai Provincial Tax Department notes that taxpayers only have to register and submit a dossier proving dependence once throughout the deduction period. When changing workplaces, employees re-register from the beginning through the income payment organization (new company) in a written authorization.
Regarding evidentiary documents for unreliable individuals, Circular No. 79/2022/TT-BTC and Circular No. 86/2024/TT-BTC have clearly stipulated:
- Photocopy of Citizen Identification Card or Birth Certificate.
- Documents confirming disability for people of working age who are unable to work.
- Legal documents to determine nurturing responsibility such as: Photocopy of documents determining nurturing obligations according to law; Photocopy confirming residence information from the Police agency; or Self-declaration of taxpayers certified by the Commune People's Committee where the taxpayer or dependent resides about living together or directly nurturing.
The tax authority emphasizes that taxpayers must be legally responsible for the accuracy of this declaration. Therefore, if Mr. H fully meets the above conditions and has sufficient documents to prove it according to regulations, the business is responsible for receiving and carrying out tax registration for dependents of employees in accordance with regulations.
