The personal allowance deduction has not yet been adjusted.

According to the Government's regular January resolution, the Ministry of Finance has been tasked with researching and proposing an increase in the personal income tax deduction for dependents to alleviate difficulties in people's lives. This is also a requirement assigned by the National Assembly at its June 2023 session.

Currently, the personal allowance for taxpayers is 11 million VND, and the allowance for each dependent is 4.4 million VND, maintained since July 2020. Of this, the 11 million VND is determined by the tax authorities based on "the minimum living expenses of a person," while the 4.4 million VND is determined as 40% of the taxpayer's personal allowance. Many experts consider this allowance level outdated and not keeping pace with people's living standards.

At the Q1 press conference on the afternoon of March 29th, Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision, stated that adjustments to the personal allowance are based on amendments to the law or when the consumer price index (CPI) fluctuates by 20%. The Personal Income Tax Law stipulates that when the CPI fluctuates by more than 20% compared to the time the law came into effect or the time of the most recent adjustment to the personal allowance, the Government will submit a proposal to the Standing Committee of the National Assembly to adjust the allowance accordingly to the price fluctuations, to be applied to the next tax period.

According to him, Vietnam actually adjusted this tax deduction in 2012 (from 4 million VND to 9 million VND per month) and 2020 (from 9 million VND to 11 million VND per month).

Mr. Tuan said that from 2020 to the present, monitoring has shown that the CPI has not fluctuated by as much as 20%, so the ministry will continue to monitor the index's developments to make proposals in accordance with regulations. He also said that when comprehensively amending the Personal Income Tax Law (roadmap to 2025), the ministry will revise related contents, including taxable income levels, tax calculation, and family deductions.

Personal income tax comprises taxes from salaried employees (the primary source) and income tax from individuals engaged in business. It is one of the three main tax pillars, making a significant contribution to the state budget, alongside corporate income tax and value-added tax.

Regarding life insurance, Ms. Nguyen Thu Phuong, Deputy Director of the Insurance Management and Supervision Department (Ministry of Finance), said that the unit has completed inspections of 5 insurance companies.

This unit publicly announced the inspection findings of Dai-ichi Life Insurance Company in early February on the agency's portal. She also stated that in addition to the website, the agency also made the findings public through a meeting attended by the person who signed the inspection decision, and relevant individuals and organizations.

The main violations by insurance companies primarily relate to the issuance of regulations, improper supervision of insurance agents; violations in the management and use of insurance agents; and negligence in accounting and bookkeeping.

Administrative violations have been penalized. Currently, this agency is coordinating with the Tax Department to handle issues related to tax arrears.

This year, the Ministry of Finance will inspect six insurance companies, including two that sell investment-linked insurance products with banks: Mirae Asset Prévoir and Cathay Life Vietnam. Along with the inspections, the regulatory agency will strictly handle any cases of violations by insurance agents.

The insurance market, especially the bancassurance channel, has recently experienced rapid growth, but many downsides have emerged. For example, banks are pressuring borrowers to purchase insurance along with their loans, or confusing insurance products with savings accounts.

In a report submitted to National Assembly deputies before the questioning session at the National Assembly Standing Committee on March 18, Minister of Finance Ho Duc Phoc assessed that bancassurance helps diversify insurance business activities, but this service makes the market more complex and needs to be rectified.

TB (according to VnExpress)

Source: https://baohaiduong.vn/chua-dieu-chinh-muc-giam-tru-gia-canh-377092.html