Proposal to increase family deduction for taxpayers and dependents by 40%

According to the Government's proposal, 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 11 million VND and 4.4 million VND).

According to the Government 's proposal, 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 11 million VND and 4.4 million VND).

National Assembly Chairman Tran Thanh Man and Vice Chairmen of the National Assembly at the meeting. (Photo: DUY LINH)

Adding income from gold bar transfer to taxable income

On the afternoon of October 13, at the 50th session of the National Assembly Standing Committee, the Government submitted the draft Law on Personal Income Tax (amended) with many notable proposals such as adjusting the threshold of non-taxable revenue, changing the tax schedule, increasing family deductions and adding a number of new income groups subject to tax.

Deputy Minister of Finance Cao Anh Tuan said that the draft Law stipulates that the level of revenue not subject to tax on business income is consistent with the level of revenue not subject to value added tax (VND 200 million/year or less), and assigns the Government the authority to regulate and adjust this level.

The Draft Law also proposes to amend regulations on 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 presents the draft Law. (Photo: DUY LINH)

The Government has drafted a resolution to adjust the family deduction level to submit to the National Assembly Standing Committee. Accordingly, the family deduction level is adjusted to increase by 40% compared to the current level, equivalent to VND 15.5 million for the taxpayer and VND 6.2 million for each dependent.

"This adjustment level is based on the growth rate of per capita income and per capita GDP growth rate," said Deputy Minister Cao Anh Tuan.

In addition, the draft Law adjusts the income threshold to determine taxable income for some income sources such as income from winning prizes, royalties, franchises, inheritances, and gifts from 10 million VND to 20 million VND to be taxable.

Supplementing other taxable income groups, including income from: transferring national Internet domain names “.vn”, transferring greenhouse gas emission reduction results, carbon credits; transferring license plates of cars won at auctions according to the provisions of law; transferring digital assets, transferring gold bars...

At the same time, add some tax-exempt income such as from: first-time transfer of greenhouse gas emission reduction results, carbon credits, green bonds; income of individuals performing scientific, technological and innovation tasks, individuals engaged in creative startups, experts, scientists, high-tech human resources, high-quality human resources...

Regarding taxable income, the majority of opinions in the Economic and Financial Committee (the examining body) believe that taxable income is an important content, directly related to the rights and legitimate interests of taxpayers, and therefore needs to be specifically regulated in the Law.

Chairman of the Economic and Financial Committee Phan Van Mai presents the audit report. (Photo: DUY LINH)

In case there is a need for regulations to adjust and supplement taxable income, it is recommended that the Government consider regulations in the direction of submitting them to the National Assembly Standing Committee for consideration and decision.

Clarifying regulations related to gold transfer for non-speculative purposes

In addition, according to Chairman of the Economic and Financial Committee Phan Van Mai, many opinions suggested considering properly the imposition of tax on gold bar transfers to avoid inconveniences for people who transfer gold not for speculative or business purposes; suggested adding the determination/limit of the threshold weight of gold bars subject to personal income tax.

Regarding the content of family deduction, the examining agency believes that, in practice, adjusting and amending the provisions of the current Law on family deduction and through studying the experiences of other countries, it is shown that the family deduction level does not necessarily need to be adjusted regularly and continuously, so there is no need or urgency to assign the Government to regulate to ensure flexibility and timeliness.

Therefore, the majority of opinions suggest that the Law should specifically stipulate the family deduction level for taxpayers and dependents as expressed in the current Personal Income Tax Law to ensure authority, clarity and transparency.

In addition, some opinions agree to assign the Government to regulate the family deduction level. However, it is proposed to stipulate in the Law the minimum and maximum family deduction levels for taxpayers and dependents, establishing the basic principle for the Government to regulate specific deduction levels.

Vice Chairman of the Committee on Law and Justice Nguyen Truong Giang speaks. (Photo: DUY LINH)

Commenting at the discussion session, Vice Chairman of the Law and Justice Committee Nguyen Truong Giang said that the family deduction level is very important, reflected in the direct impact on the right to pay taxes and the tax obligations of each individual. According to the Constitution, this issue must be decided by the National Assembly, and in cases of great necessity and based on the socio-economic situation, the Government will report to the National Assembly Standing Committee for adjustment.

Explaining this content, Deputy Minister of Finance Cao Anh Tuan said that this is the third adjustment of the family deduction level. According to current regulations, when the consumer price index (CPI) increases by more than 20%, the Government submits it to the National Assembly Standing Committee for adjustment.

According to the leaders of the Ministry of Finance, up to this point, the CPI has not exceeded the 20% threshold but is expected to reach it by the end of the year. Therefore, the Government proactively submitted a plan to promptly support people and businesses in the context of price fluctuations.

Vice Chairman of the National Assembly Nguyen Duc Hai delivered his concluding remarks. (Photo: DUY LINH)

Concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai suggested that the Government accept the opinions of the National Assembly Standing Committee and the inspection agency, and at the same time, pay attention to ensuring full institutionalization of the Party's policies and perfecting the legal policies on personal income tax.

The Vice Chairman of the National Assembly emphasized the need for review to ensure that the Law amendments resolve current difficulties and problems, ensuring that personal income tax is truly an important tool in regulating and redistributing income, aiming towards the goal of social equity.

In addition, the Government also needs to review the scope of taxable income, clarify regulations related to gold transfers for people not for speculative purposes; review the progressive tax schedule to ensure fairness among income groups.

According to Van Toan/nhandan.vn

Source: https://baovinhlong.com.vn/kinh-te/202510/de-xuat-tang-muc-giam-tru-gia-canh-voi-nguoi-nop-thue-va-nguoi-phu-thuoc-them-40-6a00704/