It's time for a change…

The Government 's submission stated that the purpose of promulgating the Law on Personal Income Tax (amended) is to expand the tax base; review, amend and supplement regulations on taxpayers and taxable income. Research on adjusting the threshold as well as the personal income tax rate for some types of income to ensure consistency with the nature of each type of income and the regulatory objectives of personal income tax.

Adjust the family deduction level for taxpayers and dependents, amend and supplement regulations related to some specific deductions to suit the new context. Reduce the number of tax brackets of the Progressive Tax Rate Table applicable to income from salaries and wages to simplify the tax schedule.

Amending and supplementing regulations on personal income tax exemption and reduction to suit the requirements of the country's socio -economic development in the coming period and international practices, contributing to implementing the Party and State's policies on breakthroughs in science and technology development, innovation and digital transformation, and achieving the goals of green growth and sustainable development.

Simplify the implementation of personal income tax policies for taxpayers and tax authorities, prevent tax evasion and avoidance. Effectively overcome shortcomings and problems arising in the implementation of the current Personal Income Tax Law to ensure transparency, ease of understanding and implementation.

The Draft Law focuses on amending and perfecting the contents on tax calculation and taxable income for each type of income, restructuring and adjusting the names of some articles to correspond with the amended contents. Amending and perfecting the regulations on tax exemption; personal income tax for business individuals. Amending the regulations on family deductions and deductions for charitable and humanitarian contributions.

Adjust the progressive tax schedule applicable to resident individuals with income from salaries and wages in the direction of reducing the number of tax rates from 7 to 5 and widening the gap between the rates. Adjust the income threshold to determine taxable income for some income items. Supplement regulations on other income groups subject to personal income tax. Supplement a number of regulations on tax exemptions, reductions and other specific deductions...

Since 2007, the Law on Personal Income Tax has been amended and supplemented many times, basically achieving the objectives set out when the law was promulgated, contributing significantly to regulating the income of all classes of people. Encouraging transparency of personal income sources, while promptly mobilizing resources for the state budget. However, in the context of socio-economic development in the country as well as the world economy and the requirements of international economic integration, reviewing, evaluating, amending and supplementing regulations to be consistent with the provisions of newly promulgated laws, ensuring the consistency of the legal system is extremely necessary.

Emphasizing this further, a National Assembly delegate affirmed that this is the time to change so that the law can keep up with reality, expand the revenue base, and ensure fairness and humanity of the policy. At the same time, it is also a major reform step, with a profound impact on all social classes, and is an important tool in regulating and redistributing income, aiming at the goal of social justice.

Therefore, the provisions of the law must address the core issue of creating fairness between employees and investors, between traditional income and digital income. In particular, it is necessary to create transparency in the calculation, declaration, and use of tax data as well as modernity in management and application of technology so that all transactions and sources of income can be controlled.

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