Resolution No. 954/2020/UBTVQH14 was promulgated on June 2, 2020 by the Standing Committee of the National Assembly which has adjusted the family circumstance deduction of PIT (Resolution 954). The Resolution shall officially come into effect on July 1, 2020. Resolution 954 will adjust the family circumstance reduction specified in Article 19.1 of the Law on Personal Income Tax No. 04/2007/QH12, amended and supplemented by Law No. 26/2012/QH13.


The family circumstance deduction (“FCD”) is the amount deducted from pre-taxable income, which is from business, salary and wages of resident taxpayers. The FCD includes a deduction for a taxpayer and deductions for each dependent of the taxpayer.

The FCD level has been adjusted by the Standing Committee of the National Assembly in accordance with price fluctuation when the consumer price index (CPI) fluctuates more than 20% compared to the time of adjusting the latest FCD.

According to Resolution 954, for the 2020 assessment, the deduction for a resident taxpayer is VND 11 million per month (VND 132 million per year) and the deduction for each dependent of the taxpayer is VND 4.4 million per month.

Due to the new FCD level being applied from 2020 assessment period, cases that have temporarily paid PIT based upon the old FCD level (VND 9 million per month for a taxpayer and VND 3.6 million per month for each dependent of the taxpayer) will be re-calculated with the amount of PIT payable based on the new FCD level when conducting PIT finalization for 2020.

Thus, as of January 1, 2020, taxable income levels without payment of PIT are VND 11 million per month (no dependents); VND 15.4 million per month (1 dependent) and VND 19.8 million per month (2 dependents).


The increasing of the FCD will reduce the burden for taxpayers in the context of the current economy which is facing many difficulties and challenges due to the prolonged COVID-19 pandemic. This also demonstrates the efforts of the National Assembly and the Government of Vietnam in supporting taxpayers, stimulating consumption and promoting economic growth.


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