Pursuant to Clause 5, Article 4 of Decree No. 31/2013/ND-CP dated April 9, 2013 of the Government detailing and guiding the implementation of a number of articles of the Ordinance on incentives for people with meritorious services to the revolution as follows:
“5. A person who lives alone without support is a person who lives alone, has no relatives or no longer has any relatives.”
Pursuant to Article 6 of the Government’s Decree No. 07/2000/ND-CP of March 9, 2000 on social relief policies stipulates on people eligible for relief as follows:
“Article 6. Persons subject to regular social relief in communes and wards under their management include:
- Orphans are children under the age of 16, orphaned by both parents or abandoned, having lost their source of nourishment and have no relatives to rely on; children who have lost their father or mother, but the other parent is either their mother or father is missing as prescribed in Article 88 of the Civil Code or is incapable of raising them as prescribed by law;
- Lonely elderly without support means a person aged 60 or older living alone. The elderly still have a spouse but are old and weak, have no children, grandchildren or relatives to rely on, and have no source of income. In the case of a lonely woman with no support, no source of income, aged 55 or older, currently receiving social relief benefits, she will continue to enjoy them;
- People with severe disabilities have no source of income and no refuge; severely disabled people have relatives but they are old and weak or poor families cannot afford to take care of them;
- Chronic psychotic person means a person suffering from a mental illness of various types of schizophrenia or psychotic disorder who has been treated many times by a mental health agency but has not yet improved and has concluded that it is chronic, lives alone without support or has a poor family.”
Pursuant to Clause 1, Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance guiding the implementation of the Law on Personal Income Tax, the Law amending and supplementing a number of articles of the Law on Personal Income Tax and Decree No. 65/2013/ND-CP of the Government detailing a number of articles of the Law on Personal Income Tax and the Law amending and supplementing a number of articles of the Law on Personal Income Tax on family allowance:
“d) Dependents include:
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d.4) Other individuals with no support that the taxpayer is directly nurturing and satisfying the conditions at Point đ, Clause 1 of this Article, including
d.4.1) Taxpayer’s biological brother and sister.
d.4.2) Paternal grandfather and grandmother; maternal grandfather and grandmother; biological aunt and uncle of the taxpayer.
d.4.3) Taxpayer’s biological niece and nephew include: children of biological brothers and sisters.
d.4.4) Persons who must directly take care of other people according to the provisions of law.
đ) Individuals who are considered as dependents according to the guidance in Item d.2, d.3, d.4, Point d, Clause 1 of this Article must satisfy the following conditions:
đ.1) A person of working age must simultaneously satisfy the following conditions:
đ.1.1) Being disabled, unable to work.
đ.1.2) No income or average monthly income of the year from all income sources does not exceed 1,000,000 VND.
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đ.2) For people outside the working age, they must have no income or the average monthly income of the year from all income sources must not exceed 1,000,000 VND.
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g) Documents proving dependents
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g.4) For other individuals as guided in Item d.4, Point d, Clause 1 of this Article, the proving documents include:
g.4.1) Photocopy of national ID card or birth certificate.
g.4.2) Legal documents to determine the responsibility for nurturing in accordance with the law.
In case the dependent is of working age, in addition to the above-mentioned documents, the proving documents must have additional documents proving inability to work such as a photocopy of the Certificate of Disability in accordance with the provisions of the law on people with disabilities for people with disabilities who are unable to work, a copy of medical records for people with diseases who are unable to work (such as AIDS, cancer, chronic kidney failure, .. ).
Legal documents in Item g.4.2, Point g, Clause 1 of this Article are any legal documents that determine the taxpayer’s relationship with dependents such as:
– Photocopy of documents defining the obligation to nurture as prescribed by law (if any).
– Photocopy of household registration book (if sharing the same household registration book).
– Photocopy of the dependent’s temporary residence registration (if not sharing the same household registration book).
– The taxpayer’s self-declaration made according to the form issued together with the guiding document on tax administration, certified by the People’s Committee of the commune where the taxpayer is residing, that the dependent is living with.
– The taxpayer’s self-declaration made according to the form issued together with the guiding document on tax administration, certified by the People’s Committee of the commune where the dependent is residing, that the dependent is currently residing in the locality and has no one to take care of (in case not living with)… ”
Based on the foregoing, the principles are as follows:
In case an employee working at the Company registers family allowance for their paternal grandfather and grandmother, maternal grandfather and grandmother, biological aunt and uncle, biological niece and nephew, and biological sibling who are individuals with no support that taxpayers are directly nurturing must satisfy the conditions guided at Point đ, Clause 1, Article 9 and have sufficient documents to prove their dependents as guided at Point g.4, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC of the Ministry of Finance. If the taxpayer’s paternal grandfather and grandmother, maternal grandfather and grandmother, biological aunt and uncle, biological niece and nephew, and biological sibling who are individuals with no support, they are not eligible for family allowance when calculating personal income tax.