In 2025, the Personal Income Tax Law will be revised.

The Personal Income Tax Law will be considered for inclusion in the 2025 law and ordinance making program, according to a representative of the National Assembly 's Finance and Budget Committee.

This information was announced by Mr. Tran Van Lam, Standing Member of the Finance and Budget Committee, at the press conference of the 6th session on the morning of November 29.

According to him, the contents included in the law and ordinance development program were calculated and considered from the beginning of the term. The fact that the Personal Income Tax Law was included in the 2025 program is considered normal and on schedule.

He added that he himself was "very impatient and needed to fix it as soon as possible when many tax policies were inadequate, including personal income tax", but overall, "this is not feasible yet".

Mr. Tran Van Lam, Standing Member of the Finance and Budget Committee, answered at the press conference of the 6th session on the morning of November 29. Photo: Ngoc Thanh — Mr. Tran Van Lam, Standing Member of the Finance and Budget Committee, answered at the press conference of the 6th session on the morning of November 29. Photo: *Ngoc Thanh*

The Standing Member of the Finance and Budget Committee added that there are many amendments and improvements to tax laws, and they cannot all be completed in one year, so they need to be divided into smaller parts to have enough time to implement. Not to mention, each draft law must follow strict procedures and processes for law making.

During the time when the Personal Income Tax Law has not been amended, a representative of the Finance and Budget Committee said that many other tax policies such as value-added tax, special consumption tax, and corporate income tax have been approved by the National Assembly Standing Committee for the Government to speed up the progress and submit them to the National Assembly in 2024.

Previously, at the budget discussion session on November 2, Mr. Tran Van Lam commented that regulations in personal income tax such as starting point of taxable income and family deduction levels are decades out of date.

Family deductions are considered one of the shortcomings in calculating personal income tax today. Finance Minister Ho Duc Phoc also acknowledged this and said that this level will be increased when the law is revised. Currently, this level for individual taxpayers is 11 million and the deduction for each dependent is 4.4 million, maintained from July 2020. Of which, 11 million is determined by the tax authority as "the spending level to meet the minimum living needs of a person", and 4.4 million is determined as 40% compared to the deduction of the taxpayer himself.

Personal income tax includes tax from salaried employees (mainly) and income tax from business individuals. This is one of the three pillar taxes, contributing significantly to the state budget, along with corporate income tax and value added tax.

According to the Ministry of Finance 's data up to the end of the third quarter, personal income tax revenue was 7,200 billion lower than the same period last year, down 6%. Compared to the full-year plan, the progress of collecting this tax reached more than 78% of the estimate. This is the first time in the past decade that personal income tax in the first 9 months has had negative growth compared to the same period in 2022 due to economic difficulties and reduced income for salaried workers.

Mr. Minh

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