Is War Veteran Allowance Counted as Income When Registering a Tax Dependent for PIT Family Deduction?
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The Ho Chi Minh City Tax Department answered a citizen's query on whether a monthly war-veteran (thuong binh) allowance counts as income when assessing whether a parent qualifies as a tax dependent for the Personal Income Tax (PIT) family deduction. Under Article 2 of the PIT Law and implementing guidance, war-veteran allowances are PIT-exempt income and are not counted when evaluating dependent eligibility. Under Article 9, clause 1, point d.2 of Circular 111/2013/TT-BTC (as amended), persons outside the working-age bracket (men 60+ or women 55+) qualify as dependents if they have no income, or if their average monthly income from all sources does not exceed VND 1,000,000. Because the war-veteran allowance is not taxable income, the Tax Department advises that a mother who is a Grade 3/4 war veteran aged over 70 and receives only this allowance — with no other income — meets the conditions to be registered as a tax dependent. The taxpayer should register the dependent formally with supporting documents (veteran certificate, proof of age).
HCMC Tax Department Guidance: War-Veteran Allowance and PIT Dependent Registration
Question
A taxpayer asks: my mother is over 70 years old, a Grade 3/4 war veteran receiving a monthly veteran allowance exceeding VND 2 million, with no other income — can she be registered as my PIT dependent?
Legal Basis
- PIT Law (Article 2): lists categories of taxable income
- Circular 111/2013/TT-BTC (Article 9, clause 1, point d.2): conditions for dependents outside the working-age bracket
- War-veteran preferential allowances (trợ cấp thương binh) are not included in taxable income categories
Tax Authority Guidance
- War-veteran allowances are state preferential subsidies; they are not taxable income under the PIT Law and are not counted when assessing dependent eligibility
- Persons outside the working-age bracket (mother over 70): qualify as a dependent if they have no income, or if average monthly income from all sources does not exceed VND 1,000,000
- Because the veteran allowance is excluded from income: a mother whose only receipt is a war-veteran allowance, with no other taxable income, qualifies to be registered as a dependent
Registration Procedure
The taxpayer submits a dependent registration form together with: the mother's veteran certificate, proof of parent-child relationship, and proof of age.