If the deduction level is increased, people with income of 17 million/month do not have to pay tax.

(Dan Tri) - If the family deduction level is adjusted to increase, people with an income of 17 million VND/month without dependents or an income of 31 million VND with 2 dependents will not have to pay personal income tax.

On the morning of November 4, Minister of Finance Nguyen Van Thang presented to the National Assembly three draft laws in the financial sector, including the Law on Personal Income Tax (amended).

Draft law amends regulations on family deductions and deductions for charitable and humanitarian contributions.

Increase family deductions for taxpayers and dependents

On October 17, the National Assembly Standing Committee passed a Resolution on adjusting the personal income tax family deduction level to increase the deduction for the taxpayer himself to 15.5 million VND/month, and for each dependent to 6.2 million VND/month.

With this new family deduction, an individual with an income of 17 million VND/month without dependents or an income of 31 million VND with 2 dependents will not have to pay tax.

The draft Law also assigns the Government to adjust the deduction level based on fluctuations in prices and income.

Minister of Finance Nguyen Van Thang (Photo: Hong Phong).

The Minister of Finance also informed about a new content in this law amendment, related to the regulations on personal income tax for business individuals in the direction of adding some taxable income items; amending the regulation on the non-taxable revenue level of 200 million VND/year to ensure consistency with the regulations in the Law on Value Added Tax.

The draft law also adjusts the tax rate from 2% to 5% for some income from providing digital information content products and services for entertainment and electronic games; adjusts the income threshold to determine taxable income for some income such as income from winning prizes, copyrights, franchises, inheritances and gifts from 10 million VND to 20 million VND.

The progressive tax schedule applicable to resident individuals with income from salaries and wages is also amended to reduce the number of tax brackets from 7 to 5 and widen the gap between the brackets.

Notably, the draft Law supplements regulations on other newly arising income groups subject to personal income tax.

Regarding the transfer of gold bars, the draft Law assigns the Government to base on the situation of gold market management, stipulate the time of application, the threshold value of gold bars subject to tax, adjust the tax rate to suit the management of the gold market and collect personal income tax on gold bars, the tax rate is 0.1% on the transfer price each time.

National Assembly session on the morning of November 4 (Photo: Hong Phong).

This regulation, according to Minister Nguyen Van Thang, is to ensure that the Government has a legal basis to decide on tax collection, and is also a tool for the Government to manage and operate the economy to ensure meeting the double-digit growth target. In particular, this also contributes to preventing gold speculation, attracting large resources in society to participate in the economy.

The Draft Law is expected to take effect from July 1, 2026. In particular, the provisions for business individuals, the progressive tax schedule and contents related to salaries and wages are expected to take effect from January 1, 2026 to synchronize with the application time of the new family deduction level.

Adjust the deduction level based on price fluctuations

During the review, Chairman of the Economic and Financial Committee Phan Van Mai said the Committee basically agreed to add income items subject to personal income tax.

Regarding the assignment of the Government to regulate the family deduction level, the review agency believes that the family deduction level is directly related to determining people's tax obligations and the Constitution stipulates that "State budget revenues and expenditures must be estimated and prescribed by law".

Chairman of the Economic and Financial Committee Phan Van Mai (Photo: Hong Phong).

Therefore, the majority of opinions in the Review Committee proposed to specify the family deduction level for taxpayers and dependents as expressed in the current Personal Income Tax Law.

Accordingly, the auditing agency proposed to specify in the Law the family deduction level for taxpayers and dependents, and at the same time stipulate the authority to assign the Government to submit to the National Assembly Standing Committee for consideration and adjustment of family deduction levels in necessary cases, in accordance with price fluctuations or in accordance with the socio-economic situation of each period.

Some opinions agree with the amendments expressed in the draft Law, assigning the Government to regulate the family deduction level to ensure flexibility and suitability with reality. However, this opinion suggests regulating in the Law the minimum and maximum family deduction levels for taxpayers and dependents, establishing the basic principle for the Government to regulate specific deduction levels.

Regarding the specific family deduction level, some opinions in the Economic and Financial Committee proposed to calculate and stipulate a higher family deduction level in the draft Law than the proposed plan of the Ministry of Finance (VND 17.3 million for taxpayers and VND 6.9 million for dependents to correspond to the adjustment of the basic salary from VND 1.49 million in 2020 to VND 2.34 million at present).

Source: https://dantri.com.vn/thoi-su/neu-nang-muc-giam-tru-nguoi-thu-nhap-17-tieuuthang-chua-phai-nop-thue-20251104092016351.htm