Ministry of Finance studies adjustment of personal income tax, with roadmap, close to reality
Consult and carefully study the tax roadmap
At a meeting with ministries, branches, associations, securities and real estate enterprises on the draft Law on Personal Income Tax (replacement), chaired by Deputy Prime Minister Ho Duc Phoc, Deputy Minister of Finance Cao Anh Tuan said: The Ministry of Finance is conducting a comprehensive review to develop a roadmap for adjusting personal income tax policies in the next 5 years, in line with reality, more equitable, effective and ensuring compliance with current legal regulations.
Deputy Minister Cao Anh Tuan affirmed that one of the current key tasks is to complete the database on income and taxpayers. This will help build tax policies more accurately and fairly in the coming time. In particular, the policy on adjusting personal income tax in the coming period is being carefully studied, and specific options will be compiled to report to the Government .
Regarding income from securities transfer, the Ministry of Finance leader said that the current tax rate is 0.1% on the transfer price, collected for each transaction. This is a method designed to simplify procedures and make it convenient for individual investors.
However, in reality, there are individuals who invest long-term or have cyclical income that may incur losses but will not be refunded if they do not file a final settlement. Therefore, the Ministry of Finance is studying a plan to allow individuals to choose to file a final settlement at the end of the year to accurately reflect their actual income, ensuring fairness.
The leaders of the Ministry of Finance also frankly stated that the current tax settlement and refund process needs to be more convenient, especially in some arising cases.
Deputy Minister of Finance Cao Anh Tuan speaks - Photo: VGP/Tran Manh
Real estate and securities tax : Review and adjust to reality
Regarding income from real estate transfers, Deputy Minister Cao Anh Tuan said that the Ministry of Finance is continuing to review and propose policy amendments in a way that is closer to reality, ensures market stability and is consistent with international practices.
Regarding dividends, the Deputy Minister analyzed: In case of dividend payment in shares, personal income tax does not arise at the time of payment but will be calculated when the individual transfers those shares, at a tax rate of 0.1% on the transfer price.
Deputy Minister Cao Anh Tuan noted that individuals currently have to pay taxes immediately upon receiving income, while businesses are required to finalize their tax at the end of the year. This leads to some problems, especially in cases where individuals suffer losses or small differences. The Ministry is studying solutions to harmonize more between individuals and organizations.
Regarding tax policy for individuals working in digital content and social networks, Deputy Minister Cao Anh Tuan said that a draft is proposing to allow individuals working in digital content to deduct reasonable expenses of up to VND4 million/month before calculating tax, to accurately reflect actual expenses incurred.
In addition, the Ministry is also reviewing subsidies to determine which types are considered reasonable expenses. These contents are assigned to the Government to specify in detail according to the 2023 amended Law.
"The Ministry of Finance will continue to consult with relevant parties and carefully consider the actual impact to determine whether to enshrine it in the law or just stop at the policy level," said Deputy Minister Cao Anh Tuan.
Regarding the family deduction policy, the Deputy Minister said that the Ministry of Finance is submitting to the National Assembly Standing Committee for consideration to adjust the deduction level. The reason is that the cumulative consumer price index (CPI) from the most recent adjustment period has nearly reached the threshold of 20% - the level prescribed in the current Law to trigger the adjustment, so the Ministry proactively submitted the adjustment plan this year.
Deputy Minister Cao Anh Tuan said that in the draft, the Ministry of Finance is calculating options to increase the family deduction level, and at the same time, adjusting the family deduction level based on the national average will be more beneficial for people in poor provinces and remote areas. However, this needs to ensure fairness and avoid sudden impacts on budget revenue.
The leaders of the Ministry of Finance acknowledged the contributions of delegates, businesses and experts. Mr. Cao Anh Tuan said that many contents are being consulted and some options have been submitted to the Government for comments, continuing to perfect the policy.
Specifically, for real estate, the Deputy Minister said that the current tax applied is calculated on the transfer price, which does not reflect the true nature of the difference as originally targeted. Therefore, the Ministry is considering adjustment options to ensure greater transparency and fairness.
Some opinions proposed tax exemption for employers in social security payments, but Deputy Minister Cao Anh Tuan clarified that enterprises can only count this amount as a reasonable deductible expense, not tax exempt. The Government will guide the detailed regulations.
Deputy Minister Cao Anh Tuan emphasized: The Personal Income Tax Law was issued in 2007 and applied since 2009, which has been more than 15 years. Therefore, reviewing and amending is necessary to keep up with actual fluctuations. The Ministry of Finance is calculating a suitable adjustment roadmap, which may last for the next 5 years.
"Tax collection must ensure the true nature of income, consistent with international practices and practices. However, it is also necessary to pay attention to the specific characteristics of Vietnam and the rapid fluctuations of markets such as real estate, securities, and digital platforms. The Ministry of Finance will continue to listen to opinions from businesses, associations, localities, and experts to build fair and transparent policies, while contributing to economic stability and increasing budget revenue in a sustainable manner," affirmed the Deputy Minister of Finance.
Real estate and securities businesses appreciate the openness to receive opinions from the drafting agency. In particular, the adjustment of the draft, keeping the option for investors to choose to calculate tax at a rate of 0.1% on the transaction value or 20% on net income if the cost can be proven, will be considered a flexible opening point.
Businesses agree with the Ministry of Finance's long-term policy of improving data systems and moving towards taxing actual profits.
However, not applying it immediately but having a roadmap and waiting for the completion of the data infrastructure is the right decision.
Mr. Minh
Source: https://baochinhphu.vn/bo-tai-chinh-se-dieu-chinh-thue-tncn-co-lo-trinh-sat-thuc-tien-102250731213859212.htm
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