Family deductions should be automatically adjusted according to CPI.

On the afternoon of November 5, the National Assembly Delegation of Gia Lai province and the National Assembly Delegation of Thai Nguyen province (Group 5) discussed in groups the draft Law on Personal Income Tax (amended), the draft Law on Tax Administration (amended) and the draft Law on Practicing Thrift and Combating Wastefulness (amended).

National Assembly Deputy Le Hoang Anh (Gia Lai) emphasized that the Personal Income Tax Law is an important law, directly related to the lives of tens of millions of people, having a profound impact on social justice, resource allocation and macroeconomic stability. According to the delegate, this amendment should aim at "nurturing sustainable revenue sources", ensuring fairness and consistency with the legal system, and at the same time approaching international practices.

Change the basis for calculating securities and real estate transfer tax from "revenue" to "net income"

The draft Law still stipulates that income tax from securities and real estate transfers is calculated based on revenue (0.1% and 2%, respectively). This method, according to delegates, is "unreasonable", because those who lose money still have to pay tax while those who make big profits pay less, causing market distortion and encouraging the situation of "double price" declaration.

Delegate Le Hoang Anh proposed amending Articles 13 and 14 to calculate tax on the difference between the actual selling price and purchase price, allowing profit and loss offset within the year and loss transfer for 2-3 years.

In addition, progressive tax rates are applied according to the holding period: under 12 months: 20% tax rate; from 12 to under 24 months: 15%; from 24 to 36 months: 10%; from 36 to 48 months: 5%; over 48 months: 2%.

Delegates also proposed mandatory comparison of transaction data, land prices, notaries and banks to limit fraud.

“This approach is consistent with the practices of the OECD, South Korea, Japan and the EU, helping to accurately reflect real profits, limit speculation, and contribute to cooling down real estate prices which are far beyond the affordability of the majority of people,” delegate Le Hoang Anh emphasized.

Family deductions need to be "automated" according to the inflation index

Regarding family deductions, National Assembly member Le Hoang Anh said that current regulations do not have an automatic adjustment mechanism, leading to a situation of "tax slippage" when prices increase.

National Assembly Delegate Le Hoang Anh (Gia Lai) speaks

Delegates proposed to add a new provision to Article 10: "The deduction level for taxpayers and dependents is automatically adjusted annually according to the CPI index or the increase in average income per capita, announced by the Ministry of Finance before November 30 of the previous year."

In addition, regarding education and health care costs, delegates proposed to institutionalize the policies in Resolutions 71 and 72 of the Politburo specifically in the Law. Accordingly, deductions for learning digital skills and foreign languages: maximum 30 million VND/year/person. Deductions for university, college, and vocational training costs: maximum 30 million VND/year/person. Deductions for medical expenses other than those covered by insurance: maximum 10% of taxable income/year. These deductions require electronic invoices and non-cash payments.

Need to expand tax exemptions and reductions to support people in difficulty

Regarding tax exemption and reduction cases, the draft Law stipulates: taxpayers facing difficulties due to natural disasters, epidemics, fires, accidents or serious illnesses that affect their ability to pay taxes will have their taxes reduced corresponding to the level of damage, but not exceeding the amount of tax payable.

National Assembly Deputy Ly Tiet Hanh (Gia Lai) speaks

Commenting on this content, National Assembly Deputy Ly Tiet Hanh (Gia Lai) said that it is necessary to consider expanding the scope of application, because in reality there are cases where taxpayers are not directly affected, but when a family member has a serious illness, they still have to suffer great losses, even having to sell assets to pay.

Delegate Ly Tiet Hanh also highly appreciated the regulation of exempting personal income tax for 5 years for high-quality digital technology industry human resources and reducing 50% of tax for high-tech human resources, considering this a necessary policy to attract and retain high-quality human resources to serve the development of science, technology and innovation.

However, according to the delegate, this group of subjects is mainly people with high income. Therefore, the delegate suggested that the Drafting Committee reconsider the level of "5 years" or "50%" to ensure fairness between groups of taxpayers, while maintaining the rationality and sustainability of tax policy.

According to National Assembly Deputy Le Hoang Anh, personal income tax is not only a financial tool but also a measure of social trust in the policy of fair distribution. The delegate suggested that the drafting agency continue to research, absorb and make more specific adjustments so that this law is truly fair, transparent, modern and fosters sustainable revenue sources.

Source: https://daibieunhandan.vn/muc-giam-tru-gia-canh-can-duoc-tu-dong-dieu-chinh-theo-cpi-10394499.html