The National Assembly finalized a plan to impose a 35% tax on income over 100 million VND/month.

On the morning of December 10, the National Assembly voted to pass the amended Law on Personal Income Tax. With 438/443 delegates voting in favor, accounting for 92.54%, the National Assembly officially passed the Law on Personal Income Tax.

Minister of Finance Nguyen Van Thang. Photo: National Assembly Media

Accordingly, the family deduction is the amount deducted from taxable income before calculating tax on income from salaries and wages of taxpayers who are resident individuals. Family deduction includes:

The tax deduction for taxpayers is VND 15.5 million/month (VND 186 million/year);

The deduction for each dependent is 6.2 million VND/month.

The tax schedule has 5 levels with the distance between levels increasing gradually to 10, 20, 30, 40 million VND and tax rates of 5%, 10%, 20%, 30%, 35%. The final tax rate is 35% applied to taxable income over 100 million VND/month.

The progressive tariff schedule is as follows:

Progressive tariff schedule. Screenshot.

Previously, Minister of Finance Nguyen Van Thang reported on the reception, explanation, revision and completion of the draft Law on Personal Income Tax (amended).

View of the meeting. Photo: National Assembly Media

Regarding tax for business households and individuals, taking into account the opinions of the reviewers, the opinions of the Delegates and the opinions of the National Assembly Standing Committee, the Government has reviewed and adjusted the regulations on tax for business households and individuals as follows:

Firstly, adjust the tax-free revenue of business households and individuals from 200 million VND/year to 500 million VND/year and deduct this amount before calculating tax at the rate on revenue. At the same time, adjust the VAT-free revenue to 500 million accordingly.

Second, add a method of calculating tax on income (revenue - expenses) for households and individuals doing business with revenue from over 500 million VND/year to 3 billion VND and apply a tax rate of 15% (similar to the corporate income tax rate for businesses with revenue under 3 billion VND/year). At the same time, stipulate that these individuals can choose the method of calculating tax based on the rate on revenue.

Regarding the family deduction level, the Minister said that, taking into account the opinions of the reviewers, the opinions of the Delegates and the opinions of the Standing Committee of the National Assembly, the Government has included the family deduction level stipulated in Resolution No. 110/2025/UBTVQH15 of the Standing Committee of the National Assembly (the deduction level for the taxpayer himself is 15.5 million VND/month, for each dependent is 6.2 million VND/month) stipulated in the draft Law and assigned the Government to submit to the Standing Committee of the National Assembly to adjust this family deduction level based on fluctuations in prices and income to suit the socio-economic situation in each period.

Regarding the Partial Progressive Tax Schedule, the tax schedule has been adjusted to reduce the tax rate of 15% (at level 2) to 10% and the tax rate of 25% (at level 3) to 20% to avoid sudden increases between levels, ensuring the reasonableness of the Tax Schedule.

Source: https://laodong.vn/thoi-su/quoc-hoi-chot-phuong-an-ap-thue-35-voi-thu-nhap-tren-100-trieu-dongthang-1622972.ldo