Proposal to increase personal income tax family deduction by 40%

(Dan Tri) - The family deduction level is adjusted to increase by 40% compared to the current level, equivalent to 15.5 million VND for the taxpayer and 6.2 million VND for each dependent (instead of the current levels of 11 and 4.4 million VND).

The draft Law on Personal Income Tax (amended) was commented on by the National Assembly Standing Committee at the afternoon session on October 13. Taxable income and tax calculation for each type of income are among the new points stipulated in this draft law.

Reduce the number of tax brackets and widen the gap between them

According to Deputy Minister of Finance Cao Anh Tuan, this revised draft stipulates family deductions (including family deductions for individual taxpayers and dependents) in the direction of assigning the Government to regulate in accordance with the socio-economic situation in each period, to implement the policy of decentralization and delegation of power.

Deputy Minister of Finance Cao Anh Tuan (Photo: Hong Phong).

The Government has drafted a resolution to adjust the family deduction level to submit to the National Assembly Standing Committee at the upcoming October session. Accordingly, the family deduction level will be adjusted to increase by 40% compared to the current level, equivalent to VND15.5 million for the taxpayer and VND6.2 million for each dependent (instead of the current levels of VND11 million and VND4.4 million).

This adjustment level is based on the growth rate of per capita income and per capita GDP growth rate, according to the Deputy Minister of Finance.

In addition, the draft law adds provisions on other income groups subject to personal income tax, such as income from transferring auctioned car license plates according to the provisions of law; income from transferring digital assets, transferring gold bars, etc.

Detailed regulations on other income to ensure compliance with the expected arising practices assigned to the Government.

Emphasizing that taxable income is an important content, directly related to the rights and legitimate interests of taxpayers, Chairman of the Economic and Financial Committee Phan Van Mai stated the viewpoint of the examining agency, proposing to specifically regulate this content in the draft law.

Many opinions in the auditing agency also suggested considering imposing tax on gold bar transfers to avoid inconvenience for people who transfer gold not for speculative or business purposes.

Chairman of the Economic and Financial Committee Phan Van Mai (Photo: Hong Phong).

The proposal to amend and supplement the regulations on family deduction levels, according to the Standing Committee of the Appraisal Agency, is necessary. The majority of opinions suggest that the law should specifically stipulate family deduction levels for taxpayers and dependents like the current Law on Personal Income Tax, to ensure authority, clarity and transparency.

Another new content is that the draft law adjusts the progressive tax schedule applied to resident individuals with income from salaries and wages in the direction of reducing the number of tax rates and widening the gap between rates.

Specifically, from the current 7 tax rates (5%, 10%, 15%, 20%, 25%, 30%, 35%) reduced to 5 tax rates (5%, 15%, 25%, 30%, 35%).

At the same time, the draft widens the gap between levels, level 1 (tax rate 5%) increases from 5 million VND/month to 10 million VND/month, level 2 (tax rate 15%) increases from 15 million VND/month to 30 million VND/month... level 5 (tax rate 35% - highest tax rate) increases from 80 million VND/month to 100 million VND/month (increase 25%).

The government is keen to be proactive in adjusting family deduction levels.

Mr. Mai said that there were opinions in the auditing agency that were concerned about the reasonableness of the plan to adjust the income thresholds and corresponding tax rates because this is the tax schedule applied to people with income from salaries and wages. However, the taxable income in the 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.

Also according to Mr. Mai, there is a proposal to keep the regulation of 7 levels with a gap between levels of 5% as the current regulation and only adjust the taxable income at each level to be more suitable with current reality, ensuring the rights and interests of taxpayers.

Explaining later, Deputy Minister of Finance Cao Anh Tuan affirmed that he will continue to review the progressive tax schedule.

National Assembly Standing Committee meeting on the afternoon of October 13 (Photo: Hong Phong).

Regarding the family deduction level, Mr. Tuan said that from 2009 until now, including the submission next October, there have been 3 adjustments.

According to the leader of the Ministry of Finance, the draft law proposes that the Government regulate the adjustment of family deduction levels not based on the consumer price index (CPI) but based on the practical situation and cost of living so that the Government can proactively support people and businesses.

"This will be decided by the National Assembly, but the Government and the Prime Minister really want to be proactive," Mr. Tuan added.

Concluding the meeting, Vice Chairman of the National Assembly Nguyen Duc Hai proposed to study and perfect the regulations on family deduction levels as proposed by the auditing agency.

The National Assembly Standing Committee also proposed to regulate the Government's authority to submit to the National Assembly Standing Committee for consideration of adjusting the family deduction level in accordance with price fluctuations in the event of fluctuations in the consumer price index.

Source: https://dantri.com.vn/thoi-su/de-xuat-tang-muc-giam-tru-gia-canh-chiu-thue-thu-nhap-ca-nhan-them-40-20251013175547557.htm