The Ministry of Justice has just released the assessment document for the draft Resolution of the Standing Committee of the National Assembly on adjusting the personal income tax deduction for dependents.
According to the draft proposal, the Ministry of Finance has proposed two options for adjusting the personal allowance deduction level for submission to the competent authority for consideration and decision.
Option 1: Adjust the personal allowance according to the CPI increase rate as stipulated. Accordingly, the personal allowance for the taxpayer themselves would increase from 11 million VND/month to approximately 13.3 million VND/month; the allowance for dependents would increase from 4.4 million VND/month to 5.3 million VND/month.
Option 2: Adjust the personal allowance based on the growth rate of average per capita income and average per capita GDP. The personal allowance for the taxpayer could be adjusted from VND 11 million/month to approximately VND 15.5 million/month, and the allowance for each dependent from VND 4.4 million/month to VND 6.2 million/month.
Based on the compiled opinions, the Ministry of Finance submitted a report to the Government and the Standing Committee of the National Assembly proposing to adjust the personal allowance deduction level according to Option 2.
Under Option 2, the Ministry of Finance calculated that individuals earning 15 million VND per month from salaries and wages would not have to pay personal income tax after deducting social insurance, health insurance, and unemployment insurance contributions. Those earning 20 million VND or more would have to pay approximately 120,000 VND per month in tax after deducting insurance costs.
In the case of one dependent, an individual earning 25 million VND/month will pay 33,750 VND in tax; while an income of 30 million VND/month will incur a personal income tax of 265,000 VND.
If there are allowances, subsidies, or voluntary retirement insurance contributions that are deductible before calculating tax, then the amount of tax payable will be lower, or no tax will be payable at all.
However, there are still suggestions to raise the personal allowance deduction to a higher level than proposed in the draft.
Specifically, the Dien Bien Provincial National Assembly Delegation proposed that the Ministry of Finance increase the personal allowance to 20 million VND/month for taxpayers (240 million VND/year) and 10 million VND/month for each dependent. This proposal aims to ensure stability and alignment with the CPI growth rate in 2025 and the 2026-2030 period.
Meanwhile, the Ho Chi Minh City National Assembly delegation believes that, based on analytical data and recent price fluctuations, the predicted increase in the price index of basic commodities by the end of 2025 could reach 50% compared to the current level. Therefore, they propose adjusting the personal allowance for taxpayers by a corresponding 50% increase, to 16.5 million VND/month.
Simultaneously, with the increase in personal deductions, when drafting the amended Personal Income Tax Law, it is also necessary to change the tax brackets in the progressive tax schedule so that the income threshold for the highest tax rate bracket also increases by 50%, reaching 120 million VND/month.
In addition, it is proposed to increase the income threshold for determining dependents to 2.5 million VND/month and adjust the dependent's personal allowance to 6.6 million VND/month.
The draft resolution of the Standing Committee of the National Assembly will be considered, and if approved, it will apply to the 2026 tax year.
Source: https://baonghean.vn/tinh-thue-thu-nhap-ca-nhan-bo-tai-chinh-trinh-nang-giam-tru-gia-canh-len-15-5-trieu-thang-10306118.html
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