Localities propose to sharply increase personal income tax family deduction

ANTD.VN - Many ministries, provinces and cities believe that the personal income tax deduction level needs to be increased, with the highest recommended level being up to 18 million VND per month.

Currently, the family deduction for individual taxpayers is 11 million VND and the deduction for each dependent is 4.4 million VND, applied from July 2020. Individuals are deducted for insurance, family deductions, allowances, subsidies..., the remaining amount is the income used to calculate personal income tax.

Recently, many opinions say that this deduction is inappropriate when inflation increases, spending and life become more expensive.

In the Draft Law on Personal Income Tax (replacement) currently being published for public consultation, the Ministry of Finance has proposed to study and adjust the family deduction level for individual taxpayers and dependents to match the recent developments in the CPI and macroeconomic indicators, contributing to reducing the tax burden for taxpayers.

At the same time, supplement the scope of determining deductible charitable and humanitarian contributions; study and supplement other specific deductions; and assign the Government to specify details and provide implementation instructions to suit emerging practices.

Most opinions suggest that it is necessary to increase the family deduction for personal income tax.

Commenting on the draft, most ministries, branches and localities agreed that it is necessary to increase the family deduction level compared to the current level, in which, some opinions gave specific proposed figures.

For example, the Ministry of National Defense proposed to increase the family deduction for taxpayers to VND17.3 million and for dependents to VND6.9 million. According to the Ministry of National Defense, in 2020 - the time the current deduction was issued - the basic salary was VND1.49 million per month. After 5 years, the family deduction remains the same while the basic salary is VND2.34 million, an increase of more than 57%.

The People's Committee of Ha Tinh province proposed to increase the family deduction for taxpayers with income from wages and salaries to 18 million VND per month, and for dependents to 8 million VND per month.

According to this locality, the deduction for taxpayers applied since 2013 is 9 million VND per month, and for dependents is 3.6 million VND. At that time, the basic salary was 1.15 million VND, but now it has increased 2.03 times, to 2.34 million VND, while the new deduction has increased by 22.2%, from 9 to 11 million VND. Therefore, it is necessary to increase it to match the increase rate of the basic salary.

Ninh Thuan Provincial People's Committee proposed to increase the family deduction levels for taxpayers and dependents to 16 million VND and 6 million VND respectively; Son La province proposed to increase them to 14 million VND and 5 million VND.

Many localities and ministries have proposed adding deductions to support costs for education, healthcare, housing, voluntary social insurance, and investments in human development. It is also proposed to include deductions to support special cases such as employees who are single parents or have relatives with serious illnesses.

Bac Giang province also believes that the application of the deduction level must be suitable to the practical living conditions of each region and area in the country instead of applying a single level as it is now.

Similarly, the Ministry of Information and Communications proposed to develop a deduction level in accordance with the Government's minimum wage policy for four regions.

Regarding the progressive tax schedule, in the Draft, the Ministry of Finance proposes to reduce the current 7 levels to an appropriate level; along with that, consider widening the gap in taxable levels.

The draft Law on Personal Income Tax (amended) will be registered in the law and ordinance making program in 2025 and is expected to be submitted to the National Assembly for comments in October 2025 and approved in May 2026.

Regarding the above comments, the Ministry of Finance believes that the proposals of the drafting agency are still in the stage of drafting the Outline, so they only focus on clarifying the problems and shortcomings that need to be revised and supplemented. The detailed revisions and specific assessments will be studied and proposed by the Ministry of Finance when the Law is included in the National Assembly's Law and Ordinance Development Program.

Source: https://www.anninhthudo.vn/cac-dia-phuong-de-xuat-tang-manh-muc-giam-tru-gia-canh-thue-thu-nhap-ca-nhan-post603020.antd