Decree No. 253/2026/ND-CP has many changes regarding the subjects and the basis for determining dependents as well as the deadline for registering dependents to be eligible for family deductions when calculating personal income tax.
Subjects and grounds for determining dependents
In Clause 2, Article 47 of Decree 253 on family deductions, there are some notable changes.
Firstly, Decree 253 no longer lists "extramarital children" as an object in the dependent group.
Second, for children aged 18 and over, the new regulation adds cases where people with civil act incapacity are identified as dependents, in addition to cases of disability and inability to work.
For the group of dependents of working age (excluding children), the new regulation removes the criterion of "disability", only applying to cases of "inability to work".
According to Decree No. 253, people who are unable to work are people with a rate of working capacity reduction of 81% or more determined according to the provisions of law and must have documents proving it from relevant agencies.
According to Ms. Ngo Thi Kim Anh - Deputy General Director - Tax and Personnel Consulting - EY Vietnam Consulting Joint Stock Company, this is a change towards being stricter. Previously, the regulation referred to people with disabilities, who are unable to work, while the new regulation only includes subjects who are unable to work along with specific and clearer criteria compared to previous regulations.
For other dependent groups without shelter that taxpayers must directly nurture such as grandparents, brothers, sisters of taxpayers... other people who must be directly nurtured according to the provisions of law, the new regulation adds conditions: The dependent must be living with the taxpayer and the taxpayer has the obligation to nurture according to the provisions of Article 104, Article 105 and Article 106 of the Law on Marriage and Family and related legal regulations. Ms. Kim Anh said that previously, the law did not require the condition of having to live with the taxpayer nor did it clearly mention the obligation to nurture according to the Law on Marriage and Family.
In addition, the average monthly income in the year from all sources of income of dependents as a basis for determining dependents that taxpayers are eligible for family deductions is also increased from 1 million VND to 3 million VND according to Circular No. 87/2026/TT-BTC.
According to Ms. Kim Anh, this is a positive change, more suitable for costs in the current economic era.
Therefore, businesses need to proactively notify employees of new regulations related to dependents as well as review dependent cases that employees are registering to ensure they fully meet the conditions and dossiers according to new regulations.
Registration deadline for dependents
Previously, the law stipulated two different time milestones: dependent groups who are other subjects must register before December 31, while dependent groups who are children, parents, spouses can register before the tax finalization time.
According to new regulations, all dependent groups must complete registration before December 31 of the tax year.
* The views in the article are those of the interviewer and do not necessarily reflect the views of the EY Global organization and its members.
