Proposal to allow taxpayers to deduct additional medical and educational expenses

According to the agenda of the 10th session of the 15th National Assembly , tomorrow morning (November 4, 2025), the Draft Law on Personal Income Tax (amended) will be submitted by the Government to the National Assembly. The Draft Law on Personal Income Tax (amended) is expected to amend and supplement all 35 Articles of the current Law and will replace the current Law on Personal Income Tax.

The revised content ranges from taxable income; tax-exempt income; tax reduction; tax for individual business; family deductions for taxpayers and dependents; deductions for charitable and humanitarian contributions; progressive tax schedule; to the payable level of some irregular incomes...

According to the Ministry of Finance , some notable contents have been revised, such as restructuring the "Partially progressive tax schedule applied to income from salaries and wages" to simplify the tax schedule and regulate income to suit the socio- economic situation.

Accordingly, the Tax Schedule has 5 levels and the tax rates are 5%, 15%, 25%, 30%, 35% . Specifically, the first level of tax rate is 5% but the taxable income is extended from 5-10 million VND; Level 2 is a 15% tax rate applied to taxable income from 10-30 million VND; Level 3 is a 25% tax rate applied to taxable income from 30-60 million VND; Level 4 is a 30% tax rate applied to taxable income from 60-100 million VND; and Level 5 is a 35% tax rate applied to taxable income over 100 million VND.

According to the Ministry of Finance, this is a regulation to simplify the tax schedule, making it easier for taxpayers to calculate and monitor their tax obligations and reduce tax obligations for all individuals at current levels compared to the current Tax Schedule. Taxpayers are expected to have more rights and incentives than under the current Personal Income Tax Law.

Notably, in this amendment, the Ministry of Finance added new content, taxpayers will be able to deduct some expenses related to education - training, health care before calculating tax . Accordingly, taxpayers will not only be able to deduct current family deductions (individuals are allowed to deduct social insurance, health insurance, unemployment insurance, professional liability insurance for some occupations that must participate in compulsory insurance, charitable and humanitarian contributions according to regulations) but also expand deductions before calculating tax for expenses for health care and education. Specifically, taxpayers will be able to deduct some expenses related to education - training, health care before calculating tax.

The Ministry of Finance said this policy encourages individuals to invest in education and improve their qualifications, helping people have more resources to solve financial problems when facing illness .

In addition, the draft Law has added a number of provisions on personal income tax exemption and reduction to attract talent such as tax exemption and reduction for individuals who are high-tech human resources in a number of economic sectors, promoting science and technology development, digital transformation and innovation.

Specifically, reduce 50% of personal income tax on income from salaries and wages of individuals who are high-tech human resources working at enterprises and projects in the fields of high technology, high-tech application, information technology, science and technology, innovation and digital transformation and a number of priority development fields according to Government regulations.

The Ministry of Finance also said that the draft Law on Personal Income Tax (amended) also amends the principles for adjusting the family deduction level. According to the provisions of the current Law on Personal Income Tax, the Standing Committee of the National Assembly is assigned to adjust the family deduction level when the CPI index fluctuates over 20%.

However, the principle of adjustment when CPI fluctuates over 20% in the current Personal Income Tax Law will no longer be suitable for the situation of price and income fluctuations. In reality, waiting for CPI to increase over 20% before adjusting family deductions takes about 5 years, while factors related to costs, prices, and people's incomes fluctuate a lot, so it is possible to base on these factors to adjust the family deduction without waiting for CPI to fluctuate over 20%.

Accordingly, the draft Law stipulates that the Government will adjust the deduction level based on price and income fluctuations to suit practical requirements.

On October 17, 2025, the Standing Committee of the National Assembly issued Resolution No. 110/2025/UBTVQH15 on adjusting the family deduction level of personal income tax, accordingly, adjusting the deduction level for the taxpayer himself from 11 million VND/month to 15.5 million VND/month, adjusting the deduction level for each dependent from 4.4 million VND/month to 6.2 million VND/month.

According to calculations, with this new family deduction, an individual (if no dependents) with an income of 17 million VND/month will not have to pay tax. In case an individual has 01 dependent with an income of 24 million VND/month, this person will not have to pay tax. In case an individual has 02 dependents with an income of 31 million VND/month, this person will not have to pay tax.

Source: https://baophapluat.vn/de-xuat-nguoi-nop-thue-duoc-giam-tru-them-chi-phi-y-te-giao-duc.html