In response to comments, the Ministry of Finance has reviewed and adjusted the number of progressive personal income tax rates for salaried employees from 7 to 5, widened the gap between the rates and readjusted 2 tax rates so that all individuals currently working at the tax rates are reduced compared to the current tax rate, while overcoming the sudden increase between the rates. Specifically, this adjustment reduces the 15% tax rate (at rate 2) to 10% and the 25% tax rate (at rate 3) to 20%.
At level 1, taxable income up to 10 million VND/month is subject to a tax rate of 5%, which is the lowest level to reduce the burden on the group with common income. At level 2, income above 10 to 30 million VND/month is subject to a tax rate of 10%, down from the current rate of 15%. At level 3, income above 30 to 60 million VND/month is subject to a tax rate of 20%, lower than the current rate of 25%. Level 4 applies a tax rate of 30% to income above 60 to 100 million VND/month. At level 5, income above 100 million VND/month is subject to a tax rate of 35%, which is the highest rate in the tax table.
According to the Ministry of Finance, with this new tax schedule, all individuals currently paying taxes at all levels will have their tax liability reduced compared to the current Tax Schedule. In addition, the new tax schedule has also overcome the sudden increase at some levels, ensuring a more reasonable tax schedule.
Regarding the tax rate in the Progressive Tax Schedule of personal income tax from salaries and wages for the highest tax rate of 35% at level 5, this is a reasonable proposal, because it is an average tax rate, not too high nor too low compared to other countries in the world as well as in the ASEAN region (some countries in the region such as Thailand, Indonesia, and the Philippines are also regulating the tax rate at the highest tax level of 35%; China is 45%). In addition, if the 35% rate is adjusted down to 30%, it will be considered a tax reduction policy for the rich.
Regarding the family deduction level, the Draft Law submitted to the National Assembly does not stipulate a specific family deduction level but assigns the Government to prescribe it in accordance with the socio -economic situation in each period. Incorporating comments and contributions, to ensure the National Assembly's authority to prescribe the basic tax content as prescribed by the Constitution, on the basis of the National Assembly Standing Committee's issuance of Resolution No. 110/2025/UBTVQH15 adjusting the family deduction level applicable from 2026, the Ministry of Finance revises the draft Law in the direction of including the family deduction level in the Law; assigns the Government to submit to the National Assembly Standing Committee to adjust this family deduction level based on fluctuations in prices and income in accordance with the socio-economic situation in each period.
In addition, the draft Law has been accepted and revised in some important contents such as the provision on "other income prescribed by the Government" being removed because it is not clearly defined; when a new type of income requiring tax arises, the Ministry of Finance will submit a report to the Government to report to the National Assembly for consideration and supplementation according to its authority.
In addition, many regulations on taxable income, tax exemptions and dependents were revised according to comments from National Assembly deputies. Some notable contents include: amending regulations on income from transferring auctioned license plates; clarifying regulations on overtime wages, night work and wages paid for non-vacation days; adding regulations on tax exemption for local government bond interest...
Source: https://baotintuc.vn/kinh-te/bo-tai-chinh-de-xuat-giam-con-5-bac-thue-thu-nhap-ca-nhan-20251129080112312.htm
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