VI This article outlines the regulations regarding conditions and the maximum personal income tax deduction of 24 million VND per year for tuition fees paid for children who are dependents, as well as the principles of family circumstance deductions, in accordance with Decree 253/2026/NĐ-CP. Let’s explore this further with Phạm Consult!
Are tuition fees for children eligible for personal income tax deductions for the taxpayer? What is the maximum deduction amount?
Under current regulations, taxpayers may claim a personal income tax deduction for tuition fees paid for their children. However, the following conditions must be met:
(1) The taxpayer must be a resident individual as defined in Article 4 of Decree 253/2026/NĐ-CP.
(2) The child for whom the tuition fees are paid must qualify as a dependent in accordance with the law. Specifically, the regulations regarding personal income tax deductions for taxpayers concerning their children’s tuition fees are set forth in Point b, Clause 2, Article 49 of Decree 253/2026/NĐ-CP, as follows:
Deductions for charitable and humanitarian contributions and other deductions
- Resident taxpayers are entitled to deductions from taxable income—prior to the calculation of tax on income from salaries and wages—for medical and educational/training expenses incurred by the taxpayer and their dependents, including:
- a) Expenses for medical examination and treatment at domestic medical facilities that fall within the scope of coverage by health insurance, with a total limit of 23 million VND per year;
- b) Expenses for education and training at domestic educational and training institutions, with a total limit of 24 million VND per year; specifically: tuition fees for preschool education, general education, vocational education, and higher education in accordance with the law on education and training, as well as fees for other professional skills training at educational and training institutions.
Accordingly, a resident taxpayer is entitled to a personal income tax deduction of up to 24 million VND per year for their child’s tuition fees, provided the child is registered as a dependent.
What are the principles governing personal income tax deductions for taxpayers who have children registered as dependents? Pursuant to the provisions of Clause 2, Article 48 of Decree 253/2026/NĐ-CP, the principles for personal income tax deductions for taxpayers with dependent children are detailed as follows:
– Taxpayers are entitled to a family circumstance deduction for a dependent child if they have completed tax registration and dependent registration. The deadline for registering a dependent and submitting supporting documentation is December 31 of the tax year; this registration remains valid for subsequent years unless changes occur.
– If a taxpayer has not yet claimed the family circumstance deduction for a dependent during the tax year, the deduction may be calculated starting from the month the obligation to support the dependent arises.
– Upon registering a dependent for the deduction, the family circumstance deduction is provisionally calculated for the year starting from the time of registration (calculated on a full-month basis).
– In cases where multiple taxpayers share the same dependent child requiring support, they must mutually agree to register the family circumstance deduction with only one taxpayer for the tax year. Any changes to this agreement shall apply to the subsequent tax period.
– Taxpayers with multiple sources of income from salaries or wages may choose where to register the family circumstance deduction for a dependent, provided that each dependent is claimed for the deduction only once against a single taxpayer during the tax year.
What are the current principles of tax administration?
Pursuant to Article 6 of the Law on Tax Administration 2025, the current principles of tax administration include:
(1) Tax administration must ensure the principles of openness, transparency, and equality; place the taxpayer at the center of service; safeguard the legitimate rights and interests of taxpayers; and enhance the effectiveness and efficiency of state budget revenue administration.
(2) Taxpayers are obliged to pay taxes and other state budget revenues in accordance with tax laws and other legal regulations. Taxpayers shall self-determine their tax obligations and other state budget revenue liabilities, self-declare such taxes and revenues, and self-pay them into the state budget in accordance with laws on taxation, tax administration, and other relevant legal provisions, except in cases where the tax administration agency calculates and notifies the tax or other revenue amounts as prescribed by law.
(3) Tax administration agencies, state agencies, and other state organizations assigned the task of administering state budget revenues shall carry out the administration of taxes and other state budget revenues in accordance with this Law and other relevant legal provisions. (4) Principles applicable to tax administration:
– The principle that the substance of activities and transactions determines tax obligations: this involves determining the true nature of a taxpayer’s transactions and business/production activities as the basis for establishing tax obligations and other revenues, ensuring that transactions reflect their actual commercial, economic, and financial substance regardless of the form presented in contracts or documents between the taxpayer and related parties;
– The arm’s-length principle;
– The risk-based management principle, utilizing risk levels to ensure the efficient use of resources and enhance management effectiveness;
– The compliance management principle, based on taxpayer compliance levels, to implement measures encouraging the voluntary and self-initiated fulfillment of tax obligations;
– The principle of tax administration in accordance with international practices, adapted to Vietnam’s s
