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The amended Personal Income Tax Law, recently passed by the National Assembly, stipulates new personal allowance deductions and a revised progressive tax rate schedule, which will directly impact the wallets of millions of salaried workers.
The new tax deduction for taxpayers will increase to VND 15.5 million per month and VND 6.2 million per dependent; effective from next tax year. This is a significant change that will benefit many workers.
With the new deductions, single people earning 15.5 million VND/month after insurance deductions will not have to pay tax. Those with one dependent are exempt from tax up to an income of 21.7 million VND, and those with two dependents up to 27.9 million VND/month.
According to some office workers, the positive changes from the amended Personal Income Tax Law and the increased family allowance deductions will help save additional income, reducing cost pressure, especially for those with young children and dependents.
Ms. Vu Thi Khac Nha ( Hanoi ) has three young children, and with the new family allowance deduction, she no longer has to pay personal income tax. "With this government support, I can save more money to cover my children's expenses, food, education, and books," Ms. Nha shared.
A notable highlight is that the amended Personal Income Tax Law has streamlined the progressive tax brackets from 7 to 5. The tax rates also no longer jump dramatically as in the previous draft.
Ms. Chu Thi Huyen from Cau Giay Ward, Hanoi, said: "I think the current tiers are balanced. Previously, the first tier was 5%, but then it jumped to 15% in the second tier, three times higher, which is a huge difference."
A notable new development is that instead of waiting for the Consumer Price Index (CPI) to fluctuate by 20% before adjusting the personal allowance, the National Assembly has empowered the Government to adjust it flexibly according to price fluctuations and people's incomes. However, experts believe that specific criteria and frequency of adjustments are needed soon to ensure the policy is truly effective.
Ms. Vu Thu Ha, Deputy General Director of Tax Consulting Services at Deloitte Vietnam, commented: "There needs to be criteria and frequency, for example, based on what index, such as inflation or wage growth, or how often we adjust it. Specific criteria and frequency for review to reduce deductions are needed."
Some experts also argue that the current maximum tax rate of 35% is still high compared to many countries in the region and that a reduction could be considered in the future to increase competitiveness and attract talent. With the new personal allowance, workers are expected to save more than 8.7 trillion VND in taxes, thereby stimulating consumption and creating further impetus for economic growth.
Source: https://vtv.vn/nang-giam-tru-gia-canh-len-155-trieu-dong-thang-tac-dong-the-nao-toi-hang-trieu-nguoi-lam-cong-an-luong-100251212071506982.htm
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