On the afternoon of October 13, the draft Law on Personal Income Tax (amended) was submitted to the National Assembly Standing Committee for consideration and comments within the framework of the 50th session of the National Assembly Standing Committee.
Presenting the project report, Deputy Minister of Finance Cao Anh Tuan said that the draft law has added income from the transfer of digital assets, gold bars; license plates of auctioned cars... to the group subject to personal income tax. The draft assigns the Government to specify details on other income to ensure compliance with reality.
However, Chairman of the Economic and Financial Committee Phan Van Mai said that after the review, many opinions suggested considering taxing gold bar transfers to avoid inconveniences for people who transfer gold for non-speculative or business purposes. "There are also opinions suggesting adding the determination/limit of the weight threshold of gold bars subject to personal income tax," he added.
Regarding the progressive tax schedule, Chairman Phan Van Mai informed that many opinions in the appraisal agency were concerned about the reasonableness of the plan to adjust income thresholds and corresponding tax rates.
Accordingly, the taxable income/year is still too low compared to the actual income level that has changed since 2009 when the Personal Income Tax Law began to be applied. The review agency recommends that the drafting agency consider the possibility of determining the taxable income increase corresponding to the growth rate of the basic salary in 2025 compared to 2009 or corresponding to the growth rate of GDP/capita.
Therefore, the majority of opinions in the review agency believe that the amendment of the tax schedule as in the draft law is not really reasonable and does not ensure fairness for taxpayers among income groups. There are opinions suggesting keeping the 7-level regulation with a 5% gap between levels as in the current regulation and only adjusting the taxable income at each level to be more suitable to the current reality, ensuring the rights and interests of taxpayers.
In particular, to ensure more comprehensive resolution of practical problems in determining deductions before calculating personal income tax for individuals with income from salaries and wages, ensuring consistency with the socio-economic development situation in the recent period and development trends as well as international practices, the draft proposes to amend regulations on family deductions for individual taxpayers and dependents.
The Government said that it has drafted a resolution of the National Assembly Standing Committee to adjust the family deduction level to submit to the National Assembly Standing Committee for consideration and approval in the direction of increasing it by more than 40% compared to the current level (equivalent to 15.5 million VND for the taxpayer and 6.2 million VND for each dependent).
Through preliminary examination, the Standing Committee of the Economic and Financial Committee proposed that amending and supplementing the regulations on family deduction levels is necessary and suitable to the current practical situation.
“Regulations on family deductions are one of the important contents that receive special attention from the people and public opinion during the process of amending and supplementing the law; they are one of the important bases for taxpayers to determine their tax obligations to the State,” Chairman of the Economic and Financial Committee Phan Van Mai stated.
Contrary to the proposal of the drafting agency, the reviewing agency believes that in our country's practice as well as through studying the experiences of other countries, the review and adjustment of family deduction levels is basically not a matter that needs to be carried out regularly and continuously; it does not pose the necessity or urgency of assigning the Government to regulate family deduction levels.
The majority of opinions in the Standing Committee of the Review Committee proposed that the law should specifically stipulate the family deduction level for taxpayers and dependents as expressed in the current Personal Income Tax Law to ensure authority, clarity and transparency.
Opinions expressed at the meeting all agreed on the view of reducing the tax burden for personal income taxpayers.
Previously, at the Government press conference on October 3, Mr. Luu Duc Huy, Deputy Director of the Department of Tax, Fees and Charges Policy (Ministry of Finance) said that the Ministry of Finance agreed with the State Bank to submit to the Government to include in the draft Law on Personal Income Tax (amended) the content of tax collection on gold bar transfer transactions. The initial proposed tax rate is 0.1% on the gold bar transfer price for each transaction.
Source: https://www.sggp.org.vn/de-xuat-bo-sung-thu-nhap-tu-chuyen-nhuong-tai-san-so-vang-mieng-chiu-thue-thu-nhap-ca-nhan-post817815.html
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