Taxpayers excited about increased family deductions

This information was enthusiastically received by public opinion, which believed that this adjustment was in line with reality, ensuring a reasonable and fair incentive policy, contributing to improving the lives of taxpayers, creating incentives to encourage labor...

Happy as if got a raise

At the 50th session of the National Assembly Standing Committee, on the morning of October 17, from the synthesis of majority opinions, the Government decided to submit to the National Assembly Standing Committee to adjust the family deduction level according to option 2: calculated according to the growth rate of income and GDP per capita. Specifically, based on the growth rate of income per capita and GDP per capita from 2020 to present (about 40-42%). The deduction level for taxpayers will increase by about 40.9%.

According to current regulations, taxpayers are entitled to a deduction of VND11 million/month and VND4.4 million/month for each dependent. When calculated according to the newly approved deduction plan, the deduction will be increased to VND15.5 million/month for taxpayers and VND6.2 million/month for dependents. The increase in the deduction is considered necessary, in line with the context of escalating prices and increasing living costs.

In the context of rising consumer prices, the increase in the family deduction to nearly 41% is good news for many taxpayers. In the photo: People shop at an electronics supermarket on Pham Van Thuan Street, Tran Bien Ward. Illustration: Kim Lieu

With the new deduction, people can keep more of their income, especially households with young children or elderly people who need care. Ms. Tran Thi Thu Hue, manager of a tourism service company (Tran Bien ward) shared: “I am really happy because the current deduction is not suitable for the cost of living in urban areas. Applying the new deduction will help me save a few million VND per month. I am raising two young children, my income is not high, so being able to reduce some of my taxes is also very happy.”

Similarly, Mr. Tran Van Lam, an IT employee at a facility in Trang Bom commune, said: “I am not married yet, so I only have personal deductions. Raising the family deduction from 11 million VND to 15.5 million VND also helps me significantly reduce my taxable income. I am very happy, it feels like I have a salary increase!”

Need to add annual adjustment mechanism

Preliminary calculations show that, for an individual with 2 dependents, according to current regulations, the total deduction is 19.8 million VND/month. When applying the new rate, this number will be up to 27.9 million VND/month. This is a significant increase, helping taxpayers reduce millions of VND in taxes each year. "I take care of my elderly mother and raise a young child. Before, every month I felt heartbroken when paying taxes because of limited spending. With the new deduction rate, I calculate that each year I can keep more than ten million VND - a very meaningful amount for workers like me" - Ms. Tran Hoang Yen (Tan Trieu ward) shared.

Adjusting the family deduction level is a necessary step to update tax policies according to real life and ensure fairness. Many experts assess: This policy not only reduces pressure on workers but also stimulates consumption and supports economic recovery. Applying option 2 is expected to contribute to reducing tax obligations for taxpayers at a higher level than adjusting according to the CPI index, helping people enjoy the fruits of socio-economic development.

On social networking forums, many opinions hope that this new tax policy will be applied as soon as possible and have an annual adjustment mechanism. “If approved, the tax calculation period should be applied to the 2025 tax calculation period, which means tax refunds in the first quarter of 2026. If the 2026 tax calculation period is applied and then we have to wait until 2027 to refund, it will take too long” - Facebook account meimei wrote.

Increasing the family deduction if calculated in a "mechanical" way without a periodic adjustment mechanism may become outdated. There are opinions suggesting that the family deduction should be more flexible according to the region, the standard of living, and the regional minimum wage. "Each time the regional minimum wage increases, the family deduction should also increase. As soon as we hear about the wage increase, the prices of essential goods in the market have already increased" - Mr. Le Dang Khoi (residing in Dong Xoai ward) confided.

Ms. Nguyen Thi Huong, an accountant at a manufacturing company in Trang Dai ward, commented: The new deduction level will be applied from the 2026 tax period, meaning that it will be until 2027 that people will clearly feel the "benefits" in tax refunds. "We hope to soon have specific instructions from the Ministry of Finance so that we can promptly apply them to salary calculation and tax deductions for employees," Ms. Huong suggested.

Although it cannot be applied immediately, the approval of the policy to adjust the family deduction level has created a positive signal from the State to the people. This is an important step in the process of reforming personal income tax policy, putting people at the center and aiming for fairness and reasonableness in income distribution.

Kim Lieu

Source: https://baodongnai.com.vn/kinh-te/202510/nguoi-nop-thue-phan-khoi-ve-viec-nang-muc-giam-tru-gia-canh-af6056c/