Consider deducting interest expenses for social housing loans when calculating personal income tax

Delegate Hoang Van Cuong ( Hanoi Delegation) gives comments on the draft Law on Personal Income Tax (amended). Photo: Quochoi.vn

Proposal for family deduction by region

On the afternoon of November 19, the National Assembly discussed the draft revised Law on Personal Income Tax (PIT).

Delegate Hoang Van Cuong (Hanoi Delegation) said that previously, the progressive personal income tax rate had 7 levels, the current draft law reduces it to 5 levels. This reduction of 5 levels has an advantage, it will be convenient, easy to manage, easy to calculate. However, it is inappropriate, the difference between the levels is very large.

For example, the delegate gave an example: the lowest tax rate is 5%, applied from 10 million VND; but at the second level from 11 million VND/month and up, the tax rate increases to 15%, creating a difference. The highest tax rate of 35% previously only applied to income of 80 million VND, but in this draft law, only 100 million VND applies the tax rate of 35%.

Meanwhile, our average adjusted family deduction increased by only 1.4 times. This is not appropriate. The delegate suggested reconsidering the tax brackets and maintaining 7 brackets with each bracket separated by 5% to spread out evenly and not create great pressure on tax burden.

National Assembly Delegate Tran Kim Yen speaks. Photo: Quochoi.vn

Delegate Tran Kim Yen (Ho Chi Minh City Delegation) said that it is necessary to consider adjusting family deductions according to regions and areas. Currently, the cost of living between urban areas, between urban and rural areas, and in remote areas has a very clear difference.

“The goal of this law amendment is an important opportunity for us to address existing problems and move towards a fair, humane tax system that is appropriate to the socio- economic situation.

"If we do not consider or research this issue because of difficulties or complications, it will not be in line with the goals we set," said the delegate.

The delegate also proposed to consider exempting or reducing personal income tax for couples who have given birth to two or more children at an appropriate rate.

According to delegates, this is an important solution to cope with the rapidly aging population.

Proposal to deduct home loan interest when calculating personal income tax

Delegate Le Thi Song An (Tay Ninh Delegation) proposed adding deductions when calculating personal income tax and interest expenses paid to credit institutions when people buy social housing or their first and only commercial house.

According to the delegate, for young people and middle-income households, home ownership largely depends on bank loans. If home loan interest is deducted when calculating personal income tax, this will be a practical support policy to help them reduce financial burden and soon stabilize their housing and life.

In fact, the current social housing fund is still limited, not everyone has the opportunity to access preferential loan policies. Therefore, not considering reducing loan interest costs for social housing buyers or first homes is not fair.

Furthermore, we are gradually integrating housing and land data into the national electronic identification system, allowing authorities to easily identify individuals who are first-time homebuyers or do not yet own real estate.

Applying this deduction policy is entirely feasible if accompanied by appropriate control mechanisms.

Source: https://laodong.vn/thoi-su/xem-xet-giam-tru-chi-phi-lai-vay-mua-nha-o-xa-hoi-khi-tinh-thue-thu-nhap-ca-nhan-1611909.ldo