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| The Ministry of Finance proposes to increase the family deduction to a maximum of VND15.5 million. Photo: LH |
According to the Ministry of Finance's electronic information portal, this agency has just completed a draft submission to the National Assembly Standing Committee, proposing to adjust the personal income tax family deduction level to be applied starting from the 2026 tax period.
The reason is that the consumer price index (CPI) in the 2020-2025 period increased by more than 21%, exceeding the prescribed threshold of 20%, the level required to adjust family deductions.
In the draft, the Ministry of Finance proposed two specific options. The first option is to adjust according to the CPI rate.
Accordingly, the deduction for taxpayers is increased from 11 million VND to about 13.3 million VND per month, and for dependents it is increased from 4.4 million VND to about 5.3 million VND.
This plan is implemented in accordance with the provisions of the Law on Personal Income Tax, closely following the basis for applying deductions according to essential needs of life and the level of inflation from the time of adjusting the most recent family deduction level (2020).
The second option is based on the growth rate of per capita income and per capita GDP. If this calculation is applied, the deduction for taxpayers can be up to 15.5 million VND and dependents about 6.2 million VND per month.
The Ministry of Finance believes that the income and GDP-based plan will significantly reduce tax obligations, thereby increasing people's disposable income, promoting domestic consumption and indirectly creating new sources of revenue for the budget in the long term, even though the budget may suffer a shortfall in revenue in the short term.
Thus, if one of the two options is approved, the family deduction will increase by VND2.3-4.5 million for taxpayers and VND900,000-1.8 million for each dependent compared to current regulations.
Currently, the family deduction is 11 million VND for the taxpayer and 4.4 million VND for each dependent, applied from July 2020. The adjustment will only be considered when the CPI increases by more than 20% compared to the previous adjustment.
Personal income tax is one of the main sources of revenue for the budget, mainly applied to salaried employees and business households. Taxable income is determined after deducting insurance, subsidies, allowances and family deductions.
( According to thesaigontimes.vn )
Source: https://baoapbac.vn/xa-hoi/202507/de-xuat-nang-giam-tru-gia-canh-len-155-trieu-dongthang-1047117/
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