People Advisory Services Tax Alert | July 2026 | Circular 87/2026/TT-BTC provides new guidance on dependents and personal income tax on derivative securities

This Alert updates on Circular 87/2026/TT-BTC provides new guidance on dependents and personal income tax on derivative securities  

On 30 June 2026, the Ministry of Finance issued Circular 87/2026/TT-BTC¹ (Circular 87), providing detailed guidance on several provisions of the Law on Personal Income Tax (PIT) 109/2025/QH15² and Decree 253/2026/ND-CP³

Key highlights are outlined as below:

1. Increased income threshold for dependents

• Circular 87 increases the income threshold used to determine eligibility for dependant relief. Accordingly, an individual may qualify as a dependent of taxpayer if his/her average income during the tax year from all sources does not exceed VND3 million per month, compared to the previous threshold of VND1 million per month.
• Taxpayers remain responsible for determining the eligibility of their dependents and must accurately declare their dependents’ income status. Any inaccurate declarations may be subject to penalties under the tax administration regulations.

2. Updated supporting documentation for dependents

• Circular 87 provides detailed guidance on supporting documents required for different categories of dependents, including children, husband and wife, parents, and other individuals without support whom the taxpayer directly maintains. For disabled dependents or those incapable of working, additional documents evidencing the disability status or reduction in work capacity are required.
• For foreign Vietnam resident taxpayers, where the prescribed Vietnamese documents are unavailable, equivalent legal documents issued by competent authorities may be used to substantiate both the dependency conditions and the relationship between the taxpayer and the dependent.
• In addition, income-paying organizations and individuals are responsible for retaining sufficient supporting documents relating to dependent claims for inspection, audit, and examination purposes by competent authorities.
• Notably, the tax authorities will prioritize the use of information available through the National Public Service Portal, administrative procedure information systems, national databases, and specialized databases maintained and shared by government authorities to verify the dependent relief. Taxpayers will only be required to submit supporting documents where the tax authorities are unable to obtain the relevant information electronically. This development is expected to streamline administrative procedures and reduce the documentation burden on taxpayers.

3. New guidance on PIT treatment of derivative securities transfers

• Circular 87 introduces detailed guidance on the PIT tax treatment of income derived from the transfer of derivative securities. Under the Circular, PIT is imposed at 0.1% of the transfer value on each transfer transaction. The Circular also provides specific rules for determining the transfer value of futures contracts and clarifies that the taxable income recognition point is the date on which the transaction is matched on the stock exchange trading system or the date on which the futures contract matures.

4. Effective date

• Circular 87 takes effect on 1 July 2026 and fully replaces Circular 111/2013/TT-BTC⁴ on PIT.
• At the same time, certain related provisions under Circulars 119/2014/TT-BTC⁵, Circular 151/2014/TT-BTC⁶, Circular 92/2015/TT-BTC⁷, Circular 25/2018/TT-BTC⁸, and Circular 79/2022/TT-BTC⁹ are repealed or superseded accordingly.