Nearly 190,000 billion VND collected from personal income tax.

According to the General Department of Taxation, revenue from personal income tax in 2024 is estimated at approximately 189,000 billion VND, exceeding the annual forecast by about 30,000 billion VND.

This year, the finance sector projected revenue from personal income tax at approximately 160,000 billion VND. However, according to information from the General Department of Taxation ( Ministry of Finance ), the estimated revenue from personal income tax for the whole year is 189,000 billion VND, an increase of 20% compared to the same period last year (157,000 billion VND).

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Thus, compared to the annual plan, personal income tax revenue reached 118.7% of the projected amount, exceeding the target by 30,000 billion VND. The tax authorities explained this result as being due to various revenue management measures such as guiding taxpayers, combating tax evasion in business and real estate transfers. The tax agency also implemented solutions to exploit additional revenue sources from digital businesses, e-commerce, affiliate marketing, online businesses, and livestream sales.

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The Ministry of Finance proposes continuing to exempt personal income tax on interest earned from savings deposits.

Personal income tax becomes a burden.

The proposal suggests the lowest personal income tax rate would be just 2.5%.

Last year, households and individual businesses paid 25,900 billion VND in taxes, equivalent to 120% of the 2023 revenue (21,639 billion VND). Of this, revenue from individual business activities was 7,987 billion VND, an increase of 15%. Revenue from property rentals increased by 17%, approximately 3,235 billion VND.

Personal income tax   This includes taxes from salaried employees (the main contributor) and individual business owners. It is one of the three main tax pillars of the budget, alongside corporate income tax and value-added tax (VAT). By the end of 2024, this tax revenue accounted for approximately 9.5% of total budget revenue, significantly higher than the 5.33% in 2011.

However, the level   personal allowance   The current method of calculating personal income tax (11 million VND plus dependent deductions of 4.4 million VND), maintained since July 2020, and the progressive tax rate schedule are considered outdated and inadequate given the increasingly high cost of living. The Ministry of Finance acknowledges that many provisions of the Personal Income Tax Law need to be amended to align with socio-economic development and reduce the burden on taxpayers.

Therefore, in its proposal to amend this law in November 2024, the Ministry proposed adjusting the progressive tax rate schedule by reducing the number of brackets and widening the income gap. They also argued that regulations on personal deductions need to be reviewed and amended to suit the new conditions.

Currently, nearly 725,000 organizations and individuals nationwide are doing business on e-commerce platforms, with a total transaction value exceeding 75 trillion VND, according to data provided to tax authorities from 439 platforms. Tax revenue from this sector has continuously increased over the past three years. Specifically, last year's revenue was approximately 116 trillion VND, a significant increase compared to the 83 trillion - 97 trillion VND recorded in the two previous years.

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The personal allowance deduction has not yet been adjusted.

Personal income tax revenue for the first 11 months exceeded the annual target by 10,000 billion VND.

Proposals to amend personal income tax as early as 2025.

In addition, the tax authorities are tightening tax collection from foreign suppliers. Currently, 123 foreign suppliers have registered for tax through the electronic portal. Since March 2022 – the time when the electronic portal for foreign suppliers became operational – foreign businesses have paid approximately 20 trillion VND in taxes. Among them, companies like Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple hold about 90% of the market share for cross-border e-commerce services in Vietnam.

2024 was also the year the tax sector recorded   record   Regarding state budget revenue, it exceeded 1.7 trillion VND. With this progress, including the 2025 budget estimate, budget revenue for the 5-year period could reach over 9 trillion VND, exceeding the target set by the National Assembly by 0.7 trillion VND.

Source: https://baoquangninh.vn/thu-gan-190-000-ty-dong-tu-thue-thu-nhap-ca-nhan-3338321.html