University students considered dependents for tax purposes in Vietnam

A legal expert has clarified the status of university students as dependents for personal income tax purposes in Vietnam. According to lawyer Pham Van Chung from the Department of Justice in Quang Ngai Province, a child attending university is still considered a dependent if they are financially supported by the taxpayer.

This clarification stems from the Law on Personal Income Tax, which defines dependents as individuals whom a taxpayer is responsible for supporting. This category includes children who are of legal age but are pursuing higher education, such as university or college. As long as these students do not have income exceeding a specified threshold, the supporting parent or guardian can claim tax deductions for them.

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According to the provisions of Clause 3, Article 19 of the Law on Personal Income Tax on family support reductions, a dependent is a person whom the taxpayer has the responsibility to support, including: ... adult children studying at university, college, vocational school, or vocational training.

The regulation ensures that individuals supporting adult children through their university education can benefit from tax relief. This provision acknowledges the financial burden of higher education and aims to provide some relief to taxpayers supporting their families.

Looking ahead, the Law on Personal Income Tax, effective from July 1, 2026, will maintain this provision for dependents. While the definition of a dependent remains consistent for university students, the law will introduce adjusted deduction amounts. Specifically, the monthly deduction for the taxpayer will increase to VND 15.5 million (VND 186 million annually), and the monthly deduction for each dependent will be VND 6.2 million, effective from January 1, 2026.

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According to the above regulations, your child is an adult but is studying at university, so they are still considered a dependent, and the person responsible for supporting the grandchild will be eligible for family support reductions when paying personal income tax according to regulations.