The National Assembly has approved the new PIT changes in their recent meeting to increase personal and dependant relief in 2020. Based on the Resolution 954/2020/UBTVQH14 (“Resolution 954”) issued on 2 June 2020, the personal and dependant relief stipulated in Clause 1 Article 19 of the Law on PIT is updated as below:
• Personal relief is increased from VND9mil/month to VND11mil/month.
• Dependant relief is increased from VND 3.6mil/month to VND4.4mil/month.
Although Resolution 954 is effective from 1 July 2020, the increase is effective from 1 January 2020.
Taxpayers shall not amend their submitted provisional PIT liability, instead the annual PIT liability shall be calculated based on the increase relief amount.