Taxpayers excited about increased family deductions

The National Assembly Standing Committee has just agreed to adjust the personal income tax (PIT) family deduction level. Accordingly, the deduction level for taxpayers is 15.5 million VND/month (186 million VND/year). The deduction level for each dependent is 6.2 million VND/month, applied from the 2026 tax period. This is information that has been welcomed by many workers with excitement and anticipation for many years.

Increase family deduction level

According to current regulations, personal income tax from salaries and wages applies a progressive tax rate with 7 levels, from 5% to 35%. For individuals without dependents, when their total income from salaries and wages is over 11 million VND/month (132 million VND/year), they must pay personal income tax. The deduction for each dependent is 4.4 million VND/month. In recent years, in National Assembly forums, National Assembly deputies have repeatedly proposed to increase the family deduction level because the current level is no longer suitable for actual conditions.

Raising the personal income tax family deduction level not only helps reduce pressure on taxpayers but also stimulates consumption.

At the 50th Session, the National Assembly Standing Committee discussed and approved the Resolution of the National Assembly Standing Committee on adjusting the personal income tax family deduction level, applicable from the tax period of 2026. Accordingly, individuals without dependents must pay personal income tax when they have an income of 15.5 million VND/month (186 million VND/year) and the deduction level for each dependent increases from 4.4 million VND/month to 6.2 million VND/month. Ms. Vo Thi Phuong Cham (residing in Long An ward), currently working at a commercial bank in Tay Ninh province, said that in recent years, prices have increased, the current family deduction level is no longer suitable, so a family with 2 children of school age has to struggle to balance their expenses. “The current family deduction level is very low and inappropriate. Therefore, increasing the deduction level will help people with average incomes reduce their burden and make it suitable for the current living standards,” said Ms. Cham. Mr. Nguyen Van Hoang (residing in Long An ward) also said that if the family deduction level is not adjusted in time, it will create a spending burden for families. “All living expenses, including children's education and family support, depend on the salary of both husband and wife. With the current living standards, to raise a child to study, it costs an average of 4-6 million VND/month, not to mention when they are sick. Therefore, adjusting the family deduction level this time is a very reasonable decision, helping families reduce monthly spending pressure,” Mr. Hoang shared.

Raising the personal income tax deduction is considered a popular tax policy, meeting the expectations of the majority of employees. At the same time, this is also a policy that helps reduce pressure on employees, stimulate consumption and support economic recovery.

At the 50th Session, the National Assembly Standing Committee discussed and approved the Resolution of the National Assembly Standing Committee on adjusting the personal income tax family deduction level, applicable from the 2026 tax period. Accordingly, individuals without dependents must pay personal income tax when they have an income of VND 15.5 million/month (VND 186 million/year) and the deduction level for each dependent increases from VND 4.4 million/month to VND 6.2 million/month.

Workers excited about new tax policy

Immediately after the National Assembly Standing Committee passed the resolution on increasing the personal income tax family deduction level, this information was received with excitement by many employees. Mr. Vo Minh Hieu - a teacher in Long Cang commune, said that adjusting the personal income tax family deduction level is a very correct and timely decision for employees. "In recent years, the prices of all goods have increased, leading to an increase in living expenses, causing great difficulties for families, especially young families, in accumulating assets and taking care of their children's education. When I heard the news of adjusting the family deduction level, I was very happy, having more conditions to cover my living expenses and take care of my family" - Mr. Hieu said. Ms. Duong Thi Anh Nguyet (residing in Ben Luc commune) affirmed that with the cost of living increasing every year, the old deduction level is no longer suitable. Although paying taxes is the responsibility and obligation of every citizen, taxpayers still face many difficulties when having to set aside money to pay taxes while the economy is still difficult. “Increasing the family deduction level will help my family save a few million VND more each month, enough to pay for children's education or save for the future. Thereby, reducing the pressure of monthly spending,” said Ms. Nguyet.

Taxpayers are supported by tax officers to declare taxes electronically (Photo: Thuy Hang)

Not only are those who directly benefit from the increase in family deductions happy, but this policy also affects businesses when it comes to retaining employees. Director of TDF Long An Co., Ltd. Le Hoang Cau said that, regardless of whether the business is large or small, retaining employees, especially high-quality human resources, is a top priority. Employees in businesses always want to receive high salaries, so they often change jobs when offered better benefits. "The current adjustment to the family deduction will indirectly contribute to increasing employees' income. Personally, I find this policy very humane and timely, and I feel excited about helping to retain employees, thereby helping to stabilize the production and business of businesses," said Mr. Le Hoang Cau.

Although the National Assembly Standing Committee has officially approved the resolution to increase the personal income tax family deduction level, this resolution will only take effect in the 2026 tax period and the tax settlement time will be in the first quarter of 2027. While waiting for the resolution to be implemented, the competent authorities need to promptly issue specific instructions to ensure the rights of employees from the beginning of the new tax period. The approval of the policy to adjust the personal income tax family deduction level this time has created a positive signal, consistent with the socio-economic situation and fluctuations in prices and consumption. This is also a timely policy to encourage and motivate taxpayers to save and consume, contributing to promoting socio-economic development./.

Raising the personal income tax deduction is considered a popular tax policy, meeting the expectations of the majority of workers. At the same time, this is also a policy that helps reduce pressure on workers, stimulate consumption and support economic recovery.

Perseverance

Source: https://baolongan.vn/nguoi-nop-thue-phan-khoi-ve-nang-muc-giam-tru-gia-canh-a205116.html