Family deductions and dependants in 2026 - new amounts and how to register a dependant's tax ID

Each dependant registered on time reduces an employee's taxable income by VND 74.4 million a year. Yet every finalisation season some employees lose this benefit simply because they registered late, lacked documents or claimed parents who no longer qualify. 2026 brings the biggest changes in more than a decade: new deduction amounts, a new tax schedule and a new dependant income threshold. Here is what employers and employees need to know.

New deduction amounts and the 5-bracket schedule

Under Resolution 110/2025/UBTVQH15 of the National Assembly Standing Committee (effective 1 January 2026, applying from the 2026 tax year), the personal deduction is VND 15.5 million per month (VND 186 million per year) and the deduction for each dependant is VND 6.2 million per month. The Law on Personal Income Tax No. 109/2025/QH15 takes effect on 1 July 2026, but its rules on employment income of tax residents apply to the whole 2026 tax year, with the progressive schedule reduced from 7 to 5 brackets. Under the transitional guidance, employers do not need to amend returns for the first half of 2026 because of these changes; the adjustment is made in the 2026 annual finalisation.

Illustrative example: an employee earns VND 30 million per month, pays compulsory insurance of 10.5% on the full salary (VND 3.15 million) and has one young child. Under the 2025 rules, taxable income was VND 11.45 million and tax about VND 967,500 per month. From 2026, taxable income falls to VND 5.15 million and tax to about VND 257,500 per month. That significant saving only materialises if the dependant has been validly registered.

Who counts as a dependant

Article 47 of Decree 253/2026/ND-CP lists the groups of dependants a taxpayer is responsible for supporting. Article 3 of Circular 87/2026/TT-BTC raises the dependant income threshold from VND 1 million to VND 3 million per month, measured as the monthly average over the year from all sources. In summary:

• Children under 18 (biological, legally adopted, or a spouse's child): no income test.
• Children aged 18 or over who have a disability, are unable to work or lack civil legal capacity.
• Children in education at university, college, intermediate or vocational level, or upper secondary school, with average monthly income of no more than VND 3 million.
• Spouse, biological parents, parents-in-law, step-parents and adoptive parents: outside working age, only the VND 3 million income test applies; within working age, they must also have a disability or be unable to work.
• Individuals with no one else to rely on whom the taxpayer directly supports (siblings, grandparents, aunts and uncles, nieces and nephews) and who meet the relevant conditions.

The taxpayer self-assesses and must declare truthfully the dependant's income. Under Article 48 of Decree 253/2026/ND-CP, each dependant may be claimed only once, by one taxpayer, in a tax year; where several people support the same person, they must agree on who registers.

A dependant's tax code is now the personal ID number

Since 1 July 2025, under Circular 86/2024/TT-BTC, the 12-digit personal identification number issued by the Ministry of Public Security replaces the tax code for individuals, including dependants. There is therefore no longer a separate application for a dependant tax code: every child whose birth has been registered already has a personal ID number. Registering the dependant with the tax authority is still mandatory, however, and the details declared (name, date of birth, ID number) must match the National Population Database. Mismatched data is a common reason for rejection.

How to register a dependant

1. Prepare supporting documents under Article 4 of Circular 87/2026/TT-BTC. Biological child: copy of the birth certificate and ID card if issued. Adopted child: plus the adoption decision or certificate. Spouse's child: plus proof of relationship such as the marriage certificate. Child over 18 in education: student card or school confirmation. Disability: a disability certificate as prescribed.
2. Choose the channel. If the employee authorises the employer, they submit the dependant registration form and documents to the company, which compiles and files them through the electronic tax registration channel. Individuals registering themselves use the e-tax portal or the eTax Mobile app.
3. Register before 31 December of the tax year. Once registered, the deduction is applied provisionally from the month of registration; if it was not claimed during the year, it is counted at finalisation from the month the support obligation arose. The registration continues to apply in later years if nothing changes.
4. Report changes: a child no longer qualifies, a parent starts receiving a pension above the threshold, or the dependant moves to another taxpayer. A change of the registering taxpayer applies from the next tax period.
5. Keep records: the employer should keep copies of each employee's dependant documents for tax inspections.

One more new point: Decree 253/2026/ND-CP introduces deductions for healthcare and education expenses of resident taxpayers and their dependants, subject to caps and specific conditions. According to summaries by advisory firms, claiming these deductions requires the individual to file their own annual finalisation, so employees should weigh this before authorising their employer to finalise on their behalf.

How Kaizen can help

Kaizen helps employers review dependant lists, standardise supporting documents and run the registration process ahead of the 31 December deadline, and prepares the 2026 PIT finalisation under the new deduction levels. Book a free tax health check for a quick review of your company's PIT compliance.