Taxpayers excited about increased family deductions

In recent days, the most talked about story in agencies and businesses in Da Nang is the news that the National Assembly has just agreed to increase the personal income tax deduction. From industrial park workers to office workers, everyone is happy as if they had received a salary increase.

Tax officials in Da Nang guide and assist citizens in completing tax payment procedures. Photo: HOAI PHONG

Joy spreads from the new policy.

According to a resolution recently passed by the National Assembly Standing Committee, the personal allowance for taxpayers will be increased from VND 11 million to VND 15.5 million per month, and from VND 4.4 million to VND 6.2 million per month for each dependent. This policy will apply from the 2026 tax year, representing an increase of approximately 40.9%, based on the average income and GDP growth rate from 2020 to the present.

This information has been welcomed with enthusiasm by workers, especially in large cities like Da Nang. In the context of rising living costs, housing prices, tuition fees, and daily expenses, the adjustment of the personal allowance is considered timely and humane, accurately reflecting the reality of people's lives.

Ms. Nguyen Thi Thanh Ha, an accountant at a service business in Hai Chau ward, shared: “Living costs are increasing, and the old deduction amount is no longer adequate. Now that it has been raised to 15.5 million VND/month, my husband and I can save a few million VND more each month, enough to cover our children's education or for medical expenses. It feels really relieved, like getting a raise.”

Nguyen The Binh, a worker at Daeryang Vietnam Industrial Co., Ltd. (Hoa Khanh Industrial Park), said: “Paying taxes is a citizen's duty, but for a family with two young children like mine, the new tax reduction is a very welcome change. With the taxable income reduced, the financial pressure is lighter, and I feel more motivated to work.”

According to calculations, when an individual has two dependents, the total deduction increases from VND 19.8 million to VND 27.9 million per month, helping taxpayers save tens of millions of VND each year. This is considered a very significant amount for workers with average incomes.

Many residents expressed their delight and appreciation for the decision to increase the personal income tax deduction for dependents. Mr. Le Van Quyet, a retired official from Lien Chieu ward, stated: “Increasing the deduction for dependents is necessary, but in the long term, there should be a mechanism for automatic adjustment based on region or annually, similar to what some countries do. When the regional minimum wage increases, the deduction should also be adjusted accordingly, avoiding a situation where it is only revised every few years and then becomes outdated.”

Sharing the same opinion, Ms. Nguyen Thi No, Chief Accountant of Inno Floors JSC, expressed: "It would be great if it could be implemented early, starting from the 2025 tax year. Employees are facing many unexpected expenses, so even a few hundred thousand dong reduction each month would be very valuable."

According to economic experts, linking the personal allowance deduction to the rate of increase in per capita income instead of the consumer price index (CPI) is seen as a step forward in policy thinking aimed at ensuring that people benefit from the fruits of economic growth, rather than just compensating for inflation.

Many people agree that the adjustment is correct and in line with public sentiment, and they suggest that specific guidelines should be issued soon so that businesses can update their payroll and tax calculation software in time, ensuring the rights of employees are protected from the beginning of the new tax period. According to some financial experts, this policy could also contribute to stimulating consumption and restoring production, as people's disposable income increases, leading to improved purchasing power for goods and services.

The increase in personal allowances has brought joy to many taxpayers. (In the photo: People shopping at a supermarket in Da Nang. Photo: Hoai Phong)

The tax authorities are ready to implement measures to ensure the rights of citizens.

According to the Da Nang City Tax Department, increasing the personal allowance is not only a technical step forward in tax policy but also a clear manifestation of the spirit of administrative reform and partnership with the people.

Mr. Bui Khanh Toan, Head of the Da Nang City Tax Department, said: “The city's tax department is proactively reviewing the entire personal income tax management process, preparing the software system and guidelines to be ready to apply when the policy takes effect. At the same time, we will strengthen communication and guidance to help taxpayers understand their rights, obligations, and how to declare taxes according to the new regulations.”

Accordingly, this adjustment is expected to reduce the number of people subject to personal income tax in the low and middle income groups, contributing to ensuring social equity and promoting voluntary compliance, a key element in modern tax administration reform.

"This policy has profound humanitarian significance, demonstrating the State's concern for people's lives in the context of a challenging economy. The Da Nang tax department will implement it promptly and transparently, ensuring there are no delays or errors in the implementation process," Mr. Toan said.

Reportedly, the Da Nang tax department is also preparing electronic guidance documents and training for tax officials to ensure that the declaration and settlement of personal income tax proceeds smoothly and in accordance with regulations.

Mr. Tran Quang Vu, Head of the Economic, Infrastructure and Urban Planning Department of Hai Van Ward, commented: “This is an important step in reforming personal income tax policies, ensuring fairness and reasonableness in income distribution. When workers feel that their income is being shared, they will have more motivation to work, innovate, and contribute more.”

Although people may not truly feel the "benefits" of tax settlement until 2027, the adoption of this adjustment policy has created a positive signal, showing that the State is always listening to and supporting the people, especially during a period when the economy is gradually recovering from difficulties.

Source: https://baodanang.vn/nguoi-nop-thue-phan-khoi-khi-duoc-nang-muc-giam-tru-gia-canh-3308067.html