50th session of the National Assembly Standing Committee:

On the morning of October 17, continuing the 50th Session, the National Assembly Standing Committee discussed and approved the Resolution of the National Assembly Standing Committee on adjusting the family deduction level of personal income tax, applicable from the tax calculation period of 2026 and the tax settlement time will be in the first quarter of 2027.

Vice Chairman of the National Assembly Nguyen Duc Hai chaired the discussion session.

Vice Chairman of the National Assembly Nguyen Duc Hai speaks at the meeting. Photo: Quochoi.vn

On behalf of the Government, Deputy Minister of Finance Nguyen Duc Chi presented the Draft Resolution of the National Assembly Standing Committee on adjusting the family deduction level of personal income tax, stating that adjusting the family deduction level is considered necessary to suit the socio-economic situation and price fluctuations, in order to reasonably and fairly mobilize income and create motivation for taxpayers to accumulate and consume, contributing to promoting economic growth.

The Government submitted to the National Assembly Standing Committee two options for adjusting family deduction levels.

Option 1 is to adjust the family deduction level according to the CPI growth rate. Deputy Minister of Finance Nguyen Duc Chi said that according to data from the General Statistics Office, in the period from 2020 to the end of 2025, the cumulative CPI is expected to fluctuate by 21.24%, so it can be considered to adjust accordingly to the CPI growth rate. Specifically, the deduction level for the taxpayer himself will increase from 11 million VND/month to about 13.3 million VND/month (an increase of about 21.24% compared to the current level); the deduction level for each dependent will increase from 4.4 million VND/month to 5.3 million VND/month (an increase of about 21.24% compared to the current level).

Implementing this plan, the state budget is expected to decrease by about 12,000 billion VND/year compared to the revenue level and number of taxpayers according to current regulations.

With option 2, adjust the family deduction level according to the growth rate of average income per capita and the growth rate of average GDP per capita.

According to the General Statistics Office, the fluctuation in average income per capita and GDP per capita from 2020 to present is about 40-42%. Therefore, based on the growth rate of average income per capita and GDP per capita in 2025 compared to 2020 mentioned above, the family deduction level can be adjusted as follows:

The deduction for the taxpayer himself/herself increases from 11 million VND/month to about 15.5 million VND/month (an increase of about 40.9% compared to the current level); the deduction for each dependent increases from 4.4 million VND/month to about 6.2 million VND/month (an increase of about 40.9% compared to the current level).

Deputy Minister Nguyen Duc Chi said that according to this plan, an individual taxpayer (if there are no dependents) with an income of 17 million VND/month, after deducting insurance premiums of 10.5% (8% social insurance + 1.5% health insurance + 1% unemployment insurance), will have 1.785 million VND (17 million VND x 10.5%) + 15.5 million VND (deduction for the taxpayer himself) = 17.285 million VND, therefore, with an income of 17 million VND/month, this person still does not have to pay tax. The income exceeding 17.285 million VND/month will be subject to tax at a tax rate starting at 5%.

According to Deputy Minister Nguyen Duc Chi, implementing this plan, the state budget is expected to decrease by about 21,000 billion VND/year compared to the revenue level and number of taxpayers according to current regulations.

Through synthesis, Deputy Minister Nguyen Duc Chi said that the majority of opinions agreed with Option 2, based on the criteria of average income growth rate per capita and average GDP growth rate per capita, with an increase of about 40% to 42% from 2020 to present.

The Government proposes that this Resolution take effect from the date of signing and apply from the 2026 tax period.

Vice Chairman of the National Assembly Nguyen Duc Hai speaks at the meeting. Photo: Quochoi.vn

In a summary report on the examination of the Government's Proposal, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the Standing Committee of the Committee agreed on the need to adjust the family deduction level of personal income tax for taxpayers and dependents to suit the socio-economic situation and price fluctuations, contributing to reasonable and fair mobilization of income, creating motivation for taxpayers to accumulate and consume, contributing to promoting economic growth.

However, Mr. Phan Van Mai said that the Government has issued Document No. 844/TTr-CP dated September 29, 2025 on the Draft Law on Personal Income Tax (amended), which includes a proposal to amend and supplement the provisions on family deductions for taxpayers and dependents. The National Assembly Standing Committee has met and commented on the draft Law on Personal Income Tax (amended) and concluded that it is necessary to combine the draft Law on Personal Income Tax (amended) and the draft Resolution on adjusting family deductions to simultaneously resolve and specify in the Law the family deductions for taxpayers and dependents, assigning the Government the authority to submit to the National Assembly Standing Committee for consideration and adjustment of family deductions in necessary cases (similar to the provisions of the current Law on Personal Income Tax).

Therefore, from the perspective of the timing of issuance, the Standing Committee of the Economic and Financial Committee believes that the issuance of a separate Resolution by the National Assembly Standing Committee to adjust the family deduction level at the present time - at the same time as the National Assembly Standing Committee and the National Assembly are reviewing the draft Law on Personal Income Tax (amended) to amend the Law in a comprehensive manner and expected to pass it at the 10th Session - is not really appropriate, creating unnecessary complications for taxpayers in implementation.

Regarding the adjustment of the family deduction level of personal income tax, Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai said that the majority of opinions in the Standing Committee of the Committee agreed with the direction of increasing the family deduction level according to the criteria of the growth rate of average income per capita and the growth rate of average GDP per capita (Option 2) and basically agreed with the family deduction level proposed by the Government.

Through discussions of members of the National Assembly Standing Committee, opinions of the State Audit and explanations of Government representatives, concluding the discussion session, Vice Chairman of the National Assembly Nguyen Duc Hai stated that members of the National Assembly Standing Committee agreed with the contents proposed in the Government's Submission.

The National Assembly Standing Committee will issue a resolution on the time and level of personal income tax family deductions as proposed by the Government. The National Assembly Standing Committee also requested the Government to study the opinions raised at this session, such as reviewing the appropriate and necessary contents on the level of family deductions, tax calculation period and application, in order to serve the amendment of the Law on Personal Income Tax.

The National Assembly Standing Committee voted to pass a Resolution on adjusting the personal income tax deduction for family circumstances. Also at the working session, the National Assembly Standing Committee passed a Resolution on environmental protection tax rates for gasoline, oil, and grease in 2026.

Source: https://hanoimoi.vn/phien-hop-thu-50-uy-ban-thuong-vu-quoc-hoi-thong-qua-nghi-quyet-dieu-chinh-muc-giam-tru-gia-canh-719982.html