Proposal to lower personal income tax ceiling to 25%

(QNgTV)- Experts, businesses and National Assembly delegations proposed lowering the maximum tax rate from 35% to 25%, while raising the highest tax threshold to about 200 million VND/month.

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In the latest draft of the Law on Personal Income Tax (amended), the Ministry of Finance proposed to reduce the number of tax brackets from 7 to 5, while widening the income gap between brackets to reduce pressure on taxpayers.

Recently, the Ministry of Finance has also received many proposals from experts, businesses and National Assembly delegations, notably the proposal to lower the maximum tax rate from 35% to 25%, while raising the highest tax threshold to about 200 million VND/month, reflecting inflation and creating competitiveness to attract high-quality human resources. The Ho Chi Minh City Tax Consulting Association also proposed to remove the 35% tax rate, keeping it at a maximum of 30% or lower, and at the same time widening the gap between the lower levels.

Currently, Vietnam's maximum tax rate of 35% is equivalent to Thailand and the Philippines, while Singapore applies 24%, Malaysia and Myanmar 30%. Deloitte Vietnam believes that taxable income in Vietnam is lower than many countries in the region, so it is necessary to adjust both the tax schedule and tax threshold to match the economic growth rate and increase international competitiveness.

Source: https://quangngaitv.vn/kien-nghi-ha-tran-thue-thu-nhap-ca-nhan-xuong-25-6507368.html