The Ministry of Finance stated that the proposal to continue exempting personal income tax on interest earned from savings deposits is intended to encourage people to deposit money in banks.
According to the Ministry of Finance, continuing to exempt personal income tax on interest earned from savings deposits is necessary to encourage people to deposit money in banks. - Photo: TU TRUNG
Responding to recent public concerns that interest earned on savings deposits might be subject to personal income tax, the Ministry of Finance affirmed that a proposal has been made to continue exempting this income from tax.
Specifically, according to the Ministry of Finance, in the draft proposal to amend the Personal Income Tax Law, the Ministry of Finance still proposes that interest income from savings deposits be one of the income items exempt from tax, as currently stipulated.
"Regarding interest on savings deposits, the current Personal Income Tax Law stipulates tax exemption for income from interest on deposits at credit institutions, interest from life insurance contracts, interest on government bonds, pension payments, etc."
"In the draft proposal for the Personal Income Tax Law (replacement) submitted for comments from ministries, localities, and the public, the Ministry of Finance proposes to continue maintaining the current regulations on personal income tax exemption for interest on savings deposits," the Ministry of Finance affirmed.
The Ministry of Finance explained that this proposal aims to encourage individuals who do not intend to invest directly in production or business to deposit their savings in banks.
This is an important channel for mobilizing capital for the economy and also a welfare policy for those unable to work (retirees, disabled people, etc.) who deposit their idle money in banks to earn interest.
Regarding the progress of drafting the Personal Income Tax Law (replacement), the Ministry of Finance informed that on February 12th, the Ministry of Justice held a meeting to appraise the proposal for drafting this law.
After receiving written feedback from the Ministry of Justice, the Ministry of Finance will finalize the proposal for the draft Law on Personal Income Tax (replacement) to submit to the Government for consideration and decision before reporting to the Standing Committee of the National Assembly and the National Assembly.
The Ministry of Finance also proposed a comprehensive revision of the current Personal Income Tax Law with seven main policy and content groups. These include increasing the personal allowance for taxpayers; adding specific deductions such as education and medical expenses before calculating tax; adjusting tax rates as well as income brackets in the progressive tax schedule…
Once approved by the competent authorities, these policies will contribute to reducing tax obligations for taxpayers.
According to the program, the draft Law on Personal Income Tax to replace the previous one will be submitted by the Government to the National Assembly at the session in October this year and passed at the session in May 2026.
Source: https://tuoitre.vn/bo-tai-chinh-de-xuat-tiep-tiep-mien-thue-thu-nhap-ca-nhan-doi-voi-lai-tien-gui-tiet-kiem-20250221152356333.htm
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