Plan to amend family deductions and adjust personal income tax

(Dan Tri) - At the 10th session, the Government plans to submit a comprehensive amendment to the Law on Personal Income Tax, including family deductions.

At a press conference announcing the results of the 9th session of the 15th National Assembly on the morning of June 27th, National Assembly Deputy Pham Thi Hong Yen, a member of the Economic and Finance Committee, stated that, according to the current Personal Income Tax Law, if the Consumer Price Index (CPI) fluctuates by more than 20% compared to the time the law came into effect or the time of the most recent adjustment of the personal allowance, the Government will submit a proposal to the National Assembly Standing Committee to adjust the personal allowance.

This adjustment reflects price fluctuations and will apply to the next tax period.

According to Ms. Yen, this regulation has allowed the Government to submit to the Standing Committee of the National Assembly for adjustment of the personal allowance if there are changes according to the law.

She informed that at the upcoming 10th session, the Government plans to submit comprehensive amendments to the Personal Income Tax Law. "Both amendments address adjustments related to personal allowances. The National Assembly's agencies will base their actions on the legislative and ordinance planning program for 2025," Ms. Yen stated.

Delegate Pham Thi Hong Yen (Photo: Gia Han).

According to this source, if the Government submits to the Standing Committee of the National Assembly only a proposal to amend Point b, Clause 1, Article 39, then a resolution of the Standing Committee of the National Assembly will be issued.

Ms. Yen further stated that if the Government included this provision in the comprehensive revision of the Personal Income Tax Law, it would also reflect the above content.

According to the current Personal Income Tax Law, individuals are allowed to deduct social insurance, health insurance, unemployment insurance, and professional liability insurance contributions for certain professions that require mandatory insurance participation, as well as personal allowances, charitable and humanitarian contributions, and allowances and subsidies as prescribed... only the remaining amount is considered income used as the basis for calculating personal income tax.

From the 2020 tax year, the tax deduction for taxpayers is VND 11 million/month (VND 132 million/year); the deduction for each dependent is VND 4.4 million/month.

Source: https://dantri.com.vn/kinh-doanh/ke-hoach-sua-muc-giam-tru-gia-canh-dieu-chinh-thue-thu-nhap-ca-nhan-20250627122002389.htm