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The Circular applies to organizations and individuals related to the implementation of the Law on Personal Income Tax, particularly regulations on family circumstance-based reductions and personal income tax on income from the transfer of derivative securities.
Income threshold serving as the basis for determining dependants
Under the Circular, the average monthly income during the year from all sources of income of a dependant eligible for family circumstance-based reductions shall not exceed VND 3 million.
Taxpayers shall accurately and truthfully declare the income of their dependants and take responsibility for determining eligible dependants. Where, during the course of implementation, a tax office discovers that the declaration is inaccurate, the taxpayer shall be handled in accordance with law.
Dossiers for determining dependants
A dossier for determining dependants includes documents proving the relationship with and the status of the dependant, such as a birth certificate, identity card, marriage certificate, and other relevant documents depending on each specific case.
For a dependant who lacks working capacity, the dossier must additionally include documents proving that the dependant has a working capacity reduction rate of 81% or more, as prescribed.
PIT on the transfer of derivative securities
Under the Circular, the personal income tax on income from the transfer of derivative securities shall be determined by multiplying the transfer price by the tax rate of 0.1% for each transfer.
For derivative securities in the form of futures contracts, the transfer price is determined based on the settlement price of the futures contract at the time of determining taxed income.
The Circular replaces Circular No. 111/2013/TT-BTC and repeals a number of provisions of other circulars concerning personal income tax in order to reform and simplify tax administrative procedures.
Circular No. 87/2026/TT-BTC takes effect from July 1, 2026.
