The Ministry of Finance has just drafted a resolution to the National Assembly Standing Committee on adjusting the family deduction level of personal income tax, applicable for the 2026 tax period.
Accordingly, citing data from the General Statistics Office, the CPI in 2020 increased by 3.23%, the CPI in 2021 increased by 1.84%, the CPI in 2022 increased by 3.15%, the CPI in 2023 increased by 3.25% and the CPI in 2024 increased by 3.63%.
Resolution 192 of the National Assembly supplements the 2025 Socio -Economic Development Plan with a growth target of 8% or more, in which Clause b, Article 1 adjusts the target "Average CPI growth rate of about 4.5 - 5%".
The Ministry of Finance believes that with the expected CPI fluctuation in 2025 of 4.5 - 5%, the CPI fluctuation from 2020 to 2025 according to the General Statistics Office's calculations will exceed 20% (about 21.24%).
Therefore, the Ministry of Finance believes that, based on the provisions of Clause 4, Article 1 of Law No. 26, it is necessary to study and adjust the family deduction level of personal income tax.
The Ministry of Finance proposed to increase the personal income tax family deduction from 11 million VND to a maximum of 15.5 million VND/month, applicable from the 2026 tax period.
Specifically, the Ministry of Finance proposes two options for adjusting the family deduction level to submit to competent authorities for consideration and decision as follows:
Option 1: Adjust the family deduction level according to the CPI growth rate.
With this option, the deduction for the taxpayer himself increases from 11 million VND/month to about 13.3 million VND/month. The deduction for each dependent increases from 4.4 million VND/month to 5.3 million VND/month.
The Ministry of Finance assesses that this plan is in accordance with the current Personal Income Tax Law, ensuring essential living needs and inflation from the most recent adjustment time (2020).
Option 2: Adjust according to the growth rate of per capita income and per capita GDP growth rate.
Accordingly, the deduction for taxpayers increases from 11 million VND/month to 15.5 million VND/month; the deduction for dependents increases from 4.4 million VND/month to about 6.2 million VND/month.
The Ministry of Finance believes that this plan will contribute to reducing tax obligations for taxpayers at a higher level, and people will enjoy the fruits of socio-economic development and improved living standards.
Implementing this option will have a higher impact on reducing state budget revenue. However, when the family deduction level is higher, tax payments will be lower and people's disposable income will increase. Thereby, this will contribute to stimulating increased household spending, social consumption and indirectly help increase budget revenue from other sources in the medium and long term.
Thus, in both options proposed by the Ministry of Finance, the family deduction for taxpayers will increase by 2.3-4.5 million VND; and for dependents, it will increase by 900,000 - 1.8 million VND/person/month compared to the present.
Source: https://baolaocai.vn/de-xuat-nang-giam-tru-gia-canh-len-155-trieu-dong-post649401.html
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