This is the time for change…

The government 's submission states that the purpose of enacting the amended Personal Income Tax Law is to broaden the tax base; review, amend, and supplement regulations on taxpayers and taxable income; and study adjustments to the thresholds and tax rates for certain types of income to ensure they are consistent with the nature of each type of income and the regulatory objectives of personal income tax.

Adjusting the personal allowance for taxpayers and dependents, amending and supplementing regulations related to certain specific deductions to suit the new context. Reducing the number of tax brackets in the progressive tax rate schedule applied to income from salaries and wages to simplify the tax schedule.

Amend and supplement regulations on personal income tax exemptions and reductions to align with the country's socio -economic development requirements in the coming period and international practices, contributing to the implementation of the Party and State's policies on breakthroughs in science and technology development, innovation and digital transformation, and achieving green growth and sustainable development goals.

Simplifying the implementation of personal income tax policies for taxpayers and tax authorities, preventing tax evasion and avoidance. Effectively addressing shortcomings and obstacles arising from the implementation of the current Personal Income Tax Law to ensure transparency, clarity, and ease of implementation.

The draft law focuses on amending and improving the provisions on tax calculation methods, taxable income for each type of income, restructuring and adjusting the titles of some articles to correspond with the amendments. It amends and improves regulations on tax exemptions; personal income tax for individuals engaged in business. It also amends regulations on family allowance deductions and deductions for charitable and humanitarian contributions.

Adjusting the progressive tax rate schedule applied to resident individuals with income from salaries and wages by reducing the number of tax brackets from 7 to 5 and widening the gap between brackets. Adjusting the income threshold for determining taxable income for certain income items. Adding regulations on other income categories subject to personal income tax. Adding some regulations on tax exemptions, reductions, and other specific deductions...

Since 2007, the Personal Income Tax Law has been amended and supplemented numerous times, essentially achieving its objectives when enacted and making a significant contribution to regulating the income of various segments of the population. It encourages transparency in individual income sources and promptly mobilizes resources for the state budget. However, in the context of domestic and global socio-economic development and the demands of international economic integration, reviewing, evaluating, amending, and supplementing regulations to ensure consistency with newly enacted laws and the uniformity of the legal system is absolutely necessary.

Further emphasizing this point, a National Assembly representative affirmed that this is the time for change so that the law can both keep pace with reality, broaden the tax base, and ensure the fairness and humanity of the policy. At the same time, it is a major reform with far-reaching impacts on all social strata, serving as an important tool in regulating and redistributing income, aiming for social equity.

Therefore, the legal regulations must address the core issue of creating fairness between employees and investors, between traditional and digital income. In particular, there must be transparency in the calculation, declaration, and use of tax data, as well as modernization in management and the application of technology so that all transactions and income sources can be monitored.

Source: https://daibieunhandan.vn/day-la-thoi-diem-phai-thay-doi-10394253.html