About to increase family deductions, deductions for education and medical expenses

In the upcoming draft of the Law on Personal Income Tax, in addition to family deductions, the drafting agency plans to add deductions in a number of areas such as education and healthcare.

This is the information shared by Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision ( Ministry of Finance ) at the regular press conference of the second quarter of 2025 of the Ministry of Finance on the afternoon of July 2.

Specifically, updating on the progress of the project to build a replacement Law on Personal Income Tax (PIT), Mr. Tuan said that the Ministry of Finance has coordinated with ministries, branches and localities to propose building a replacement Law on PIT, reporting to the Government and the National Assembly Standing Committee to add to the National Assembly's 2025 law-making program.

Based on the presentation of the Ministry of Finance, on June 21, at the thematic meeting on legal policy development in June, the Government gave opinions on this content and issued a related resolution, assigning the Ministry of Finance two tasks.

Taxpayers are expected to be able to deduct expenses for health care and education.

One is to represent the Ministry of Finance, report to the National Assembly Standing Committee to add the draft Law on Personal Income Tax to the 2025 law-making program, and submit it to the National Assembly at the October session. In particular, the Law on Personal Income Tax is a law that comprehensively amends current regulations. "The Ministry of Finance is currently implementing this content," Mr. Tuan shared.

Second task, the Government assigned the Ministry of Finance to urgently develop a draft Law to submit to the Government and the National Assembly in October.

The representative of the Ministry of Finance said that in the proposal to develop a replacement Personal Income Tax Law, the Ministry of Finance reported to the Government its plan to revise the entire legal provisions, focusing on 6 main contents including revising and perfecting regulations related to determining taxable income, calculating tax on each income item in accordance with the current context; reviewing and supplementing tax-exempt income items according to the policies recently issued by the Party and the State, such as high-tech and green fields...

Notably, Mr. Tuan also said that in the upcoming draft of the Law on Personal Income Tax, the drafting agency will study increasing the family deduction level when calculating tax to promptly reflect changes in people's living standards.

Along with that, the Ministry will report to the Government and the National Assembly to add deductions when calculating personal income tax to promote development and support people in a number of areas such as education and health.

The new law will also amend the progressive tax schedule for wages and salaries, in a streamlined manner.

"Currently, there are 7 tax rates, which are expected to be reduced in the near future," he said. In addition, the Ministry of Finance will review the provisions of the Personal Income Tax Law related to the provisions of recent resolutions of the National Assembly such as the Resolution on science and technology development, international financial centers, private economic development, etc.

Source: https://cand.com.vn/Xa-hoi/sap-nang-muc-giam-tru-gia-canh-giam-tru-cho-chi-phi-giao-duc-y-te-i773508/