Can grandparents be registered as dependents to get family deductions?
My child is 22 years old, working at a company, mother and child have the same household registration. My biological parents are over working age and have their own household registration. So, can my child register his maternal grandparents as dependents to get family deductions?. The concern of Mrs. Tran Thi Thao (Duc Chau commune, Nghe An province).
Reply:Pursuant to Article 9 of Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Minister 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:
"At point d, clause 1, Article 9, family deductions for dependents are provided:
1. Family deduction
... d) Dependents include:
… d.4) Other individuals without support that the taxpayer is directly supporting and meets the conditions in Point d, Clause 1 of this Article, including:
d.4.1) Full brothers, full sisters, full siblings of the taxpayer.
d.4.2) Paternal grandparents; maternal grandparents; paternal aunts, paternal uncles, paternal uncles of the taxpayer.
… d) Individuals considered as dependents according to the instructions in d.2, d.3, d.4, point d, clause 1 of this Article must meet the following conditions:
d.1) For people of working age, the following conditions must be met at the same time:
Article 1.1) Disabled, unable to work.
Article 1.2) No income or average monthly income in the year from all sources of income does not exceed VND 1,000,000.
d.2) For people outside of working age, they must have no income or have an average monthly income in the year from all sources of income not exceeding VND 1,000,000.
e) People with disabilities and those who are unable to work according to the instructions in Clause 1.1, Point dd, Clause 1 of this Article are those who are subject to the law on people with disabilities and people with diseases that make them unable to work (such as AIDS, cancer, chronic kidney failure, etc.).
Based on the above provisions, in case the employee registers a dependent as a grandparent (with a biological child of working age) who is not an individual without support and is directly supported by the taxpayer according to the provisions of law, he/she is not eligible for family deduction when calculating personal income tax according to the provisions of Clause 1, Article 9 of Circular No. 111/2013/TT-BTC.
In case the employee registers dependents who are grandparents who are homeless individuals that the taxpayer is directly raising and meet the conditions at Point d, Clause 1, Article 9 of Circular No. 111/2013/TT-BTC, they are eligible for family deductions when calculating personal income tax according to regulations.
