Latest information regarding personal income tax filing.

TPO - The Ministry of Finance has submitted a proposal to the Government to adjust and increase the income threshold used as a basis for provisional tax deductions. Taxpayers with one dependent and an income exceeding 28.6 million VND per month will now be required to pay personal income tax.

The Ministry of Finance has just submitted to the Government a draft Decree detailing certain provisions and measures for organizing and guiding the implementation of the Personal Income Tax Law.

Accordingly, for income payments under 5 million VND per payment, the organization or individual paying the income is allowed to deduct 10% tax if the individual requests it.

Organizations and individuals paying salaries, wages, or fees to resident individuals who do not have a contract or have a labor contract of less than 3 months, and whose income payment is 5 million VND or more per payment, must deduct tax, declare and pay the deducted tax at a rate of 10% on the income before paying the income to the individual.

In cases where the income payment is less than 5 million VND per payment, the organization or individual paying the income is allowed to deduct 10% tax if the individual requests it.

The proposal requests the government to increase the income threshold to be used as a basis for provisional tax deductions.

In addition, the Ministry of Finance proposes raising the threshold for incidental income exempt from tax settlement from 10 million VND to 15 million VND per month. Specifically, individuals with additional income from other sources averaging no more than 15 million VND per month during the year will continue to have 10% personal income tax deducted at source and will not be required to settle this income.

Regarding regulations related to tax deductions, tax declarations, and tax payments, the Ministry of Finance stated that, unlike the current decree (which specifies types of income subject to tax deduction and types of income not subject to tax deduction), the draft decree only specifies types of income not subject to tax deduction.

Individuals who receive income from other individuals, where the paying individual has not withheld tax; individuals who receive income from foreign organizations not registered for tax in Vietnam; and all other cases where tax withholding is not performed, must declare and pay tax.

The drafting agency also proposed adding a regulation allowing taxpayers to deduct up to 47 million VND per year from their taxable income for healthcare and education expenses before calculating personal income tax. The maximum deduction for healthcare and education expenses is 47 million VND per year. The Ministry of Finance estimates that implementing this plan would reduce budget revenue by approximately 7,697 billion VND per year.

Taxpayers with one dependent and an income exceeding VND 28.63 million per month are required to pay personal income tax.

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Source: https://tienphong.vn/thong-tin-moi-nhat-ve-viec-nop-thue-thu-nhap-ca-nhan-post1845204.tpo