Regional Family Deduction

In the context of Vietnam's economy facing many fluctuations, the adjustment of family deductions in the draft amendment to the Personal Income Tax Law will certainly receive special attention from the public. If passed at the National Assembly session in October, the amended Personal Income Tax Law will contribute to ensuring tax fairness and conformity with the actual living standards of the people.

Adjusting the family deduction level will contribute to ensuring tax fairness and suitability with people's actual living standards. In the photo: Producing export garment products at TNG Investment and Trading Joint Stock Company. Photo: TL

According to current regulations, the family deduction for personal income tax (PIT) payers is 11 million VND/month and for each dependent is 4.4 million VND/month, applied from 2020.

However, this deduction has not changed over the past five years, while the consumer price index has increased by more than 15%, resulting in the current deduction no longer accurately reflecting people's actual living standards.

To overcome this situation, in Resolution No. 191/NQ-CP dated June 26, 2025, the Government assigned the Ministry of Finance to study and adjust the family deduction level in a direction consistent with the actual living standards, consumer price index and average income per capita. It is expected that the Government will submit to the National Assembly for approval the Personal Income Tax Law (replacement) at the meeting at the end of 2025.

Accordingly, one of the notable new points in the draft amendment to the Personal Income Tax Law is the proposal to adjust the family deduction level according to each region and area. This will contribute to accurately reflecting the differences in living costs and living standards between localities.

For example, some provinces in the midland and mountainous areas of the North. According to the report of the General Statistics Office, the standard of living in the provinces in this region, including Thai Nguyen, is much lower than in big cities such as Hanoi , Hai Phong or Ho Chi Minh City.

Specifically, the average spending per capita in the above provinces is about 30% lower than in major cities. The average income per capita in 2024 of many provinces in the Northern midland and mountainous region is lower than the national average.

With the above factors, if the family deduction in this area is adjusted to about 13 million VND/month for taxpayers and 5.5 million VND/month for each dependent, it will help people here have a more stable standard of living, while reducing the tax burden.

This adjustment not only helps ensure fairness in tax contributions, accurately reflecting the ability to pay of people in each locality, but also motivates people in provinces and cities to develop the economy , thereby contributing positively to the state budget. At the same time, it helps people have more resources to spend on essential needs such as health care and education, thereby improving the quality of life.

If the draft amendment to the Personal Income Tax Law is passed by the National Assembly, localities need to proactively develop a specific implementation roadmap and coordinate with tax authorities to adjust family deduction levels in accordance with regulations.

People are eagerly waiting for changes in personal income tax regulations towards increasing family deductions and appropriate regional deductions.

Source: https://baothainguyen.vn/xa-hoi/202507/giam-tru-gia-canh-theo-vung-mien-1e3114b/