This afternoon, the National Assembly discussed in the hall the draft Law on Tax Administration (amended) and the draft Law on Personal Income Tax (amended).
The draft Personal Income Tax Law proposes that the tax-free revenue level is below VND200 million/year. This is the content that many National Assembly deputies have expressed their opinions on.
Delegates said that the revenue threshold of 200 million/year is still too low and is creating unfairness in tax payment between households and individuals doing business with enterprises as well as people with income from wages and salaries.
Speaking at the end of the meeting, Finance Minister Nguyen Van Thang said that tax policies related to business households and individuals are very difficult and complicated issues. He pointed out that tax collection from business households is not a new issue but has been implemented for many years, only the collection method is different, while the tax calculation method has not changed.
Previously, business households and individuals performed their tax obligations using the lump-sum tax method, which means they determined their own revenue and paid according to that level. Up to now, the new collection method requires business households to declare according to actual revenue and not use lump-sum tax.
Minister of Finance Nguyen Van Thang gave an explanatory speech. Photo: National Assembly
Minister Nguyen Van Thang said that switching to this new tax collection method will reduce huge tax losses, especially in developed economic regions.
"Just by applying information technology, the tax we collect from lump-sum tax to declared tax increases by 64%," the Minister added.
The Minister affirmed: "Thus, the tax calculation method remains the same and the tax threshold is better. Previously, over 100 million VND/year had to pay tax, but now it has been raised to 200 million VND/year. So it cannot be said that we are making things difficult for business households."
However, the Minister agreed with the opinions of the delegates that there are shortcomings in the way of calculating the taxable revenue threshold for business households, which does not create fairness compared to workers with income from wages and salaries.
"In Vietnam, there is a saying that one does not fear shortages, but only fears unfairness," the Minister said, adding that in this round of law revisions, the tax threshold for salaried workers is being considered to be raised. Therefore, tax policies for households and individuals doing business also need to ensure fairness for this group.
The Minister agreed with the delegates that it is necessary to resolve the issue of ensuring that "the tax rate of business households must be commensurate with the tax rate currently collected from wage earners".
However, through the comments of the delegates, the Minister of Finance said that this revenue threshold still needs to be recalculated so that business households do not feel disadvantaged compared to the threshold for starting to collect taxes for salaried employees. The Minister said that he will take into account the opinions of the delegates and research to have a suitable starting tax threshold for business households.
Regarding the progressive tax schedule, which previously had 7 levels, the draft law has reduced it to 5 levels. After discussion, some delegates suggested keeping the 7 levels. The Minister said that he would coordinate with the National Assembly agencies to study it.
Regarding family deductions, the Minister said that recently, the National Assembly Standing Committee passed a resolution to adjust the family deductions of personal income tax.
Accordingly, the deduction for the taxpayer himself is increased to 15.5 million VND/month; and the deduction for each dependent is 6.2 million VND/month. According to him, this adjustment is based on fluctuations in the consumer price index, average income per capita and GDP growth rate.
With this adjustment, people with an income of 17 million VND/month (without dependents), or 24 million VND/month (with 1 dependent), or 30 million VND/month (with 2 dependents) will not have to pay tax.
Source: https://vietnamnet.vn/bo-truong-tai-chinh-se-tinh-lai-nguong-doanh-thu-chiu-thue-cua-ho-kinh-doanh-2464442.html
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