Raising the family deduction for taxpayers is appropriate.

That was the opinion given by delegates at the Conference to collect comments on the draft Law on Personal Income Tax organized by the Ho Chi Minh City Tax Consultants and Agents Association on August 5.

Increase family deduction level

Associate Professor, Dr. Tran Van Tung, Head of the Faculty of Finance and Commerce, Ho Chi Minh City University of Technology (HUTECH), said that the Ministry of Finance 's report clearly stated the need to replace the current Personal Income Tax Law because the regulations have revealed limitations and inadequacies, especially regarding family deductions, tax rates, and regulations related to taxable income that have not kept up with the development and fluctuations of the socio-economy.

The aim of the amendment is to expand the tax base, adjust deductions and tax schedules accordingly, simplify policies and ensure transparency and fairness.

On that basis, Associate Professor, Dr. Tran Van Tung proposed the family deduction level, that is, the current deduction (VND 11 million for the taxpayer and VND 4.4 million for dependents) has been applied since 2020 and has become outdated compared to inflation and increasing living costs. Therefore, according to Mr. Tung, it is necessary to increase the deduction level for the taxpayer himself and for dependents.

According to Mr. Tung, in Vietnam, inflation and living expenses: According to data from the General Statistics Office (Ministry of Finance), the consumer price index (CPI) has increased significantly since 2020. The basic cost of living in large cities such as Hanoi and Ho Chi Minh City (rent, food, transportation, education , healthcare) is much higher than the current deduction level. The minimum living standard of a worker in the city has exceeded 11 million VND. Vietnam's average income per capita in 2024 is estimated at 5,000 USD (about 125 million VND/year, equivalent to more than 10.4 million VND/month). The deduction level of 11 million VND/month is only enough for the most basic spending level, not encouraging consumption and reinvestment.

Mr. Nguyen Thai Son, Director of Saigon Tax Consulting Joint Stock Company.

Mr. Nguyen Thai Son, Director of Saigon Tax Consulting Joint Stock Company, said that the regulation on family deduction before calculating personal income tax for employees and salaried workers aims to ensure that individuals have essential expenses to meet basic personal needs such as: food, accommodation, travel, study, medical treatment... only income after calculating family deduction is subject to tax.

Reducing the number of tax brackets is reasonable.

Regarding the progressive tax schedule: The draft Law on Personal Income Tax 2025 also aims to reduce the number of tax brackets from 7 to 5, which is reasonable and consistent with the world 's simplification trend. However, Associate Professor, Dr. Tran Van Tung said that it is necessary to widen the income gap at tax brackets to reduce pressure on the middle class.

Delegates gave their opinions at the conference "Getting opinions and giving feedback on the Draft Law on Personal Income Tax (replacement)" organized by the Ho Chi Minh City Tax Consultants and Agents Association on the morning of August 5.

Dr. Tran Trung Kien - Faculty of Public Finance, Ho Chi Minh City University of Economics commented that Article 5 of the Draft Law on Personal Income Tax (replacement) exempts personal income tax for 2 years and reduces 50% of the tax payable for the next 4 years for income from salaries and wages of experts and scientists received from innovative startups, research and development centers; innovation centers, intermediary organizations supporting innovative startups, etc.

50% reduction in personal income tax on income from salaries and wages of individuals who are high-tech human resources working at enterprises and projects in the fields of technology, high-tech application, information technology, science and technology, innovation and digital transformation and a number of priority development fields according to the State's orientation...

According to Dr. Kien, exemption and reduction of personal income tax on income from salaries and wages of scientists working in key national science and technology tasks is appropriate.

This will reduce financial burdens, motivate innovation and contributions from scientists, and encourage domestic scientific research activities; increase regional and international competitiveness in attracting talent; demonstrate the State's respect and worthy treatment for intellectuals, and contribute to promoting innovation and economic development.

Source: https://baodautu.vn/nang-muc-giam-tru-gia-canh-cho-nguoi-nop-thue-la-phu-hop-d349851.html