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.

Da Nang tax officials guide and support people in tax payment procedures. Photo: HOAI PHONG

Joy spreads from new policy

According to the resolution recently passed by the National Assembly Standing Committee, the family deduction level has been adjusted to increase from VND 11 million to VND 15.5 million/month for taxpayers and from VND 4.4 million to VND 6.2 million/month for each dependent. The policy will apply from the 2026 tax period, corresponding to an increase of about 40.9%, based on the growth rate of income and GDP per capita from 2020 to present.

This information was received with excitement by workers, especially in big cities like Da Nang. In the context of increasing living costs, housing prices, tuition fees and daily expenses, the adjustment of the family deduction level is considered timely and humane, reflecting the reality of people's lives.

Ms. Nguyen Thi Thanh Ha, an accountant at a service business in Hai Chau ward, shared: “The cost of living is getting higher and higher, the old deduction level is no longer suitable. Now 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 pay for our children's education or for when we are sick. It feels really relieved, like getting a raise.”

Mr. Nguyen The Binh, a worker at Daeryang Vietnam Industrial Co., Ltd. (Hoa Khanh Industrial Park), said: “Paying taxes is a citizen’s obligation, but for a family with two small children like me, the new deduction is a very welcome change. The taxable income has decreased, the pressure on spending is lighter, I feel more motivated to work.”

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

Many people happily appreciated the decision to increase the personal income tax deduction level this time. Mr. Le Van Quyet, a retired official of Lien Chieu ward, expressed his opinion: "Increasing the family deduction level is necessary, but in the long term, there should be an automatic adjustment mechanism by region or annually, as some countries apply. When the regional minimum wage increases, the deduction level should also be adjusted accordingly, to avoid the situation of only adjusting it once every few years and then falling behind again."

Sharing the same opinion, Ms. Nguyen Thi No, chief accountant of Inno Floors Joint Stock Company, expressed: "If it can be applied early from the 2025 tax period, it would be great. Workers are incurring many arising expenses, reducing just a few hundred thousand each month is very valuable."

According to economic experts, linking the family deduction level to the growth rate of average income per capita instead of the consumer price index (CPI) is considered a step forward in policy thinking to ensure that people enjoy the fruits of economic growth, not just compensate for inflation.

Many people agree that the adjustment is correct and in line with the people's wishes, and at the same time, it is recommended to issue specific instructions soon so that businesses can update their payroll software, deduct taxes, and ensure the rights of employees right from the beginning of the new tax period. According to some financial experts, this policy can also contribute to stimulating consumption and recovering production, because people's disposable income increases, leading to improved purchasing power for goods and services.

The increase in the family deduction has brought joy to many taxpayers. In the photo: People shopping at a supermarket in Da Nang. Photo: HOAI PHONG

Tax industry is ready to deploy, ensuring people's rights

According to Da Nang City Tax, raising the family deduction level is not only a technical step forward in tax policy but also a clear manifestation of the spirit of administrative reform and accompanying the people.

Mr. Bui Khanh Toan, Head of Da Nang City Tax Department, said: “The city’s tax department is proactively reviewing the entire personal income tax management process, preparing software systems and instructions to be ready for application when the policy takes effect. At the same time, we will increase propaganda and guidance for taxpayers to clearly understand their rights, obligations and how to declare according to the new regulations.”

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

“This is a policy of profound humanitarian significance, demonstrating the State’s concern for people’s lives in the context of many economic challenges. The Da Nang Tax Department will implement it promptly and transparently, without any delays or errors in the implementation process,” said Mr. Toan.

It is known that the Da Nang tax sector is also preparing electronic guidance documents and training for tax officers, to ensure that the declaration and settlement of personal income tax takes place smoothly and in accordance with regulations.

Mr. Tran Quang Vu, Head of the Economic - Infrastructure and Urban Department of Hai Van Ward, commented: "This is an important step forward in reforming personal income tax policy, ensuring fairness and reasonableness in income distribution. When workers feel shared, they will have more motivation to work, be more creative and contribute more."

Although it will not be until 2027 that people will truly feel the "benefits" of tax settlement, the approval of this adjustment policy has created a positive signal, showing that the State always listens to and accompanies the people, especially during the 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