Proposal to increase family deduction to 15.5 million VND/month from 2026

The Ministry of Finance proposes to increase the family deduction level.

The Ministry of Finance has just issued a draft Resolution of the National Assembly Standing Committee (NASC) adjusting the family deduction level of personal income tax from the 2026 tax period.

The draft resolution proposed two options for family deductions.

Option 1: The deduction for the taxpayer is 13.3 million VND/month (159.6 million VND/year); the deduction for each dependent is 5.3 million VND/month.

Option 2: The deduction for taxpayers is 15.5 million VND/month (186 million VND/year); The deduction for each dependent is 6.2 million VND/month.

The Ministry of Finance proposes that when the Resolution is passed, it will take effect from the date of signing and be applied from the 2026 tax period.

According to current regulations, the family deduction for individual taxpayers is 11 million VND/month and the deduction for each dependent is 4.4 million VND/month, maintained from July 2020.

Thus, in option 1, the family deduction for taxpayers will increase by 2.3 million VND/month; dependents will be 0.9 million VND/month. Option 2 increases by 4.5 million VND/month for individual taxpayers, dependents will increase by 1.8 million VND.

The Ministry of Finance's report stated that recently there have been opinions that the family deduction level is still low, but there are also opinions that the current deduction level is not low when compared to the general level of living standards and income of the people today, and that many workers currently have income that is not yet at the level of having to pay taxes.

In addition, there are also opinions that it is necessary to regulate the family deduction level according to the regional minimum wage level, the family deduction level in urban areas and large cities needs to be higher than in rural and mountainous areas due to higher costs; there are also opinions that there must be a higher tax policy for individuals in urban areas and large cities to limit immigration and migration to large cities...

However, according to the Ministry of Finance, the family deduction level for taxpayers and taxpayers' dependents according to the provisions of the law on personal income tax is a specific level according to the general level of society, regardless of whether people have high or low incomes, have different consumption needs and live in different areas.

Personal income tax laws in countries, including developed and developing countries, only stipulate general family deductions, applied uniformly, without distinction by locality or population segment.

For individuals working in difficult areas, the Personal Income Tax Law stipulates that regional allowances, attraction allowances, and transfer allowances... are not included in taxable income to support workers and attract individuals to work in these areas.

Previously, at the question-and-answer session of the 9th session on June 19, answering National Assembly deputies about tax and fee policies to support people and businesses in the coming time, Minister Nguyen Van Thang added that the Ministry of Finance is advising the Government to submit a Resolution of the National Assembly Standing Committee to adjust the family deduction level of the Personal Income Tax Law.

According to nld.com.vn

Source: https://baothanhhoa.vn/de-xuat-nang-muc-giam-tru-gia-canh-len-15-5-trieu-dong-thang-tu-nam-2026-255574.htm