Drop the proposal to support 100% of the salary for tax officials

VTV.vn - The amended Tax Management Law, recently passed by the National Assembly, no longer provides for 100% salary support for tax officials and exemption from personal income tax.

On the morning of December 10th, with 437 out of 448 participating delegates voting in favor (92.39%), the National Assembly passed the amended Law on Tax Administration. The law will take effect from July 1st, 2026.

Before voting, Minister of Finance Nguyen Van Thang briefly reported on the reception, explanation, revision and completion of the draft Law on Tax Administration (amended).

Minister of Finance Nguyen Van Thang

Regarding supplementary income for civil servants and workers, the Minister stated that, taking into account the opinions of the reviewers, the opinions of the Deputies, and the opinions of the Standing Committee of the National Assembly, the Government has removed the content of Clause 5, Article 9 from the draft Law.

In the previous draft, Clause 5, Article 9 on tax official support regime, the Ministry of Finance proposed 2 options.

Option 1 (in case of approval from the Politburo before the law is passed): tax management officials are entitled to monthly support equal to 100% of their salary according to the current salary coefficient (excluding allowances).

This monthly allowance is paid together with salary and is not used as a basis for calculating social insurance contributions and benefits. Income from this allowance is exempt from personal income tax and other financial obligations to the State.

Option 2 (in the case where the Politburo has not yet given its approval before the law is passed): The Government shall regulate the supplementary income for tax management officials and employees in tax management agencies after approval by the competent authority.

Thus, the Law on Tax Administration (amended) recently passed by the National Assembly no longer stipulates 100% salary support for tax officials and exemption from personal income tax.

Eliminate lump-sum tax for individuals and business households from January 1, 2026

Regarding tax management for business households, the Law on Tax Management (amended) is revised to clearly stipulate the responsibility of tax authorities to support business households that have used invoices from cash registers that connect data with tax authorities, and to build support tools to ensure convenience for business households while still being consistent with the general principle of self-declaration and self-payment of taxes by taxpayers.

The amendment adds a provision to the Government stipulating regulations on tax settlement and handling of overpaid taxes and other revenues in cases where business households conduct business on e-commerce platforms.

Specifically, for value added tax and personal income tax, in case business households and business individuals self-determine that they have annual revenue from production and business activities of goods and services that are not subject to tax or are not required to pay tax according to the provisions of law on value added tax and personal income tax, business households and business individuals must notify the tax authority of the actual revenue generated during the year.

The amended Law on Tax Administration adds a provision assigning the Government the authority to regulate the settlement of taxes and the handling of overpaid taxes and other revenues in cases where business households conduct business on e-commerce platforms.

In case a business household or individual business determines that it has annual revenue from production and trading of goods and services subject to tax and must pay tax according to the provisions of the law on tax, the business household or individual business shall self-determine the amount of value added tax and personal income tax payable according to the provisions of the law on value added tax and personal income tax.

In case business households and business individuals use invoices generated from cash registers with data connection to tax authorities, the tax management information system automatically creates tax declarations to support business households and business individuals in declaring and calculating taxes based on electronic invoice database, tax management database and other database sources that tax authorities obtain from other state agencies, organizations and individuals.

Household businesses and individual business owners are responsible for declaring and calculating taxes for each type of tax according to the tax period. The tax authorities, based on the tax management database, provide information to support household businesses and individual business owners in tax declaration and calculation.

In case of business activities on e-commerce platforms or other digital platforms with online ordering and payment functions, the owner of the e-commerce platform or other digital platform (domestic or foreign) is responsible for deducting, declaring and paying the deducted tax on behalf of business households and business individuals.

In cases where business activities take place on e-commerce platforms or other digital platforms that do not have online ordering and payment functions, household businesses and individual businesses must directly declare, calculate, and pay taxes according to regulations.

This regulation will take effect from January 1, 2026.

Source: https://vtv.vn/bo-de-xuat-ho-tro-100-luong-cho-cong-chuc-thue-100251210113235475.htm