Don't hesitate to reduce family circumstances.

On March 18, Minister of Finance Ho Duc Phoc participated in answering questions at the meeting of the National Assembly Standing Committee. Among the many questions sent to the head of the financial sector, voters were most interested in the content of family deductions when calculating personal income tax.

Minister of Finance Ho Duc Phoc answered questions from National Assembly deputies at the 31st session of the National Assembly Standing Committee.

Responding to the question of National Assembly delegate Nguyen Hoang Bao Tran (Binh Duong delegation) about "Does the Ministry of Finance have a plan to consider increasing the family deduction level for personal income taxpayers and dependents in the coming time, and what is the appropriate deduction level?", Minister Ho Duc Phoc said that many press agencies have stated that the personal income tax rate is not suitable for current conditions when prices are high and family income, especially in urban areas, does not meet the requirements.

However, Mr. Ho Duc Phoc also said that it is still necessary to follow the provisions of the law. To change the family deduction level, it is necessary to amend the Personal Income Tax Law. According to the plan, the amendment will begin in 2025, at which time the Ministry of Finance will present its views and collect opinions from all walks of life and agencies. And then the family deduction factor will be rebuilt and submitted to the Government, the National Assembly Standing Committee, and the National Assembly.

In fact, the deduction of 11 million VND for individual taxpayers and 4 million VND for dependents when calculating taxable income for personal income tax, which has been applied up to now, is no longer appropriate, as everyone knows.

Of course, everything must be done in accordance with the provisions of the law, but if the regulations are deemed no longer appropriate, amendments should be made immediately.

Recently, the Government has requested the Ministry of Finance to study and propose adjustments to the family deduction level in calculating personal income tax. I think that it will take a long time to completely amend this law because it has to go through many processes and be included in the law-making program.

However, in the immediate future, to increase the family deduction level, the authorities can propose that the National Assembly consider and include this content in the general resolution of the nearest National Assembly session. Thus, it is completely possible to promptly resolve difficulties for taxpayers.

And when calculating the family deduction level, we hope that the amendment will ensure that it is consistent with people's living standards, that is, it must include factors such as income level and living standards to meet the needs of improving people's lives.

In addition, it is necessary to study and consider amending in the direction of accepting reasonable expenses related to taxable income such as: House rent, tuition fees, medical examination and treatment fees, etc. These expenses are very large and essential in the family, but are currently not calculated.

Since the application of the Personal Income Tax Law (amended in 2012), the regional minimum wage has increased 9 times (except for 2021, which did not increase due to the Covid-19 pandemic, from VND 2 million/person/month to more than VND 4.68 million/person/month, equivalent to an increase of nearly 2.4 times). However, the family deduction for taxpayers and dependents has only been adjusted once in mid-2020.

Therefore, there should be appropriate adjustments in the family deduction regulations. For example, if inflation increases by 5%, the family deduction will automatically increase by 5%.

Or else, the time period for adjusting family deductions needs to be shortened compared to the current practice, to a maximum of about 2-3 years/time, instead of having to wait 9-10 years.

Source: https://www.baogiaothong.vn/giam-tru-gia-canh-dung-nen-chan-chu-192240319055335114.htm