Having one dependent, income over 280 million VND/year must pay personal income tax

Each taxpayer usually has 1 dependent. Thus, in 2026, with the newly increased family deduction, salaried workers with an income of over 280 million VND/year will have to pay personal income tax.

It's only the end of September, but personal income tax revenue is about to reach the target for the whole year - Photo: Contributor

By 2026, more than 2 million people will not have to pay personal income tax.

The Standing Committee of the National Assembly passed a Resolution on adjusting the family deduction level of personal income tax.

Accordingly, the deduction for taxpayers is 15.5 million VND/month (186 million VND/year). The deduction for each dependent is 6.2 million VND/month (74.4 million VND/year). The deduction will be applied from the 2026 tax period.

With the increased deduction level, the Ministry of Finance calculates that by 2026, the number of taxpayers will also decrease to 2.21 million, or 2.18 million fewer people, equivalent to nearly half of the number of people currently paying personal income tax will no longer have to pay tax.

Specifically, most taxpayers at level 1 will no longer have to pay personal income tax. At the same time, a portion of taxpayers at level 2 will also be transferred to level 1 or not have to pay.

All tax brackets will significantly reduce tax liability for employees.

Speaking to Tuoi Tre Online , Mr. Hoang Van Cuong - member of the National Assembly's Economic and Financial Committee, said that after deducting health insurance, unemployment insurance, humanitarian charity..., in 2026, people with income over 186 million VND will have to pay tax.

"However, taxpayers often have dependents such as children of school age, or parents of working age, with no income or very low income.

In case the taxpayer has 1 dependent, from 2026, the income above 280 million VND/year, equivalent to 23.3 million VND/month, must pay personal income tax on the part above this threshold" - Mr. Cuong said.

According to the Ministry of Finance, in the case of having 2 dependents, with an income of 31 million VND/month, there is no need to pay tax.

Because the deductions include for the taxpayer himself 15.5 million VND + 2 dependents 12.4 million VND + insurance payments of about 10.5% of income 3.255 million VND = 31.155 million VND.

Compared to current regulations, with an income of 31 million VND/month and 2 dependents, the taxable income is about 8 million VND/year. The tax payable is 550,000 VND/month. Obviously, the family deduction level increases, the burden of paying personal income tax for salaried workers will be reduced.

Need to widen the gap between tax brackets

In order for tax policy to create incentives for legal enrichment, according to Mr. Cuong, an important content that needs to be revised in the draft Law on Personal Income Tax is the progressive tax schedule. He suggested that the distance between tax brackets should be widened to reduce the tax burden on salaried workers.

Sharing this view, Ms. Nguyen Thi Cuc - President of the Vietnam Tax Consulting Association, also said that it is necessary to design the distance between levels to properly reflect the ability to contribute. The distance between levels needs to be widened to reduce the level of regulation on income from wages and salaries, especially in the high-income group.

According to Mr. Cuong's suggestion, level 1 should stipulate monthly taxable income from 0-30 million VND, not from 0-10 million VND as in the draft law that the Government has just submitted to the National Assembly.

Level 2 is the same, the income is from 30 million to 60 million VND. Level 3 is from 60 to 100 million VND. The final level must apply the income over 160 million VND/month.

"Taxable income must increase at least twice compared to the current level, to match price fluctuations and increase per capita income," Mr. Cuong suggested.

According to the program, at the National Assembly session opening on October 20, the draft revised Law on Personal Income Tax will be discussed and approved by the National Assembly.

According to the latest figures from the Ministry of Finance, by the end of September, personal income tax reached 177,474 billion VND, reaching 98.4% of the yearly estimate. Compared to the same period last year, personal income tax in the past 9 months exceeded 24.6%, equivalent to 35,000 billion VND.

LE THANH

Source: https://tuoitre.vn/co-mot-nguoi-phu-thuoc-thu-nhap-tren-280-trieu-dong-nam-moi-phai-nop-thue-thu-nhap-ca-nhan-20251018153904272.htm