Taxable income is too low
Mr. Nguyen Dinh Duc is currently a mechanical worker in Ha Dong district (Hanoi), with a salary of about 10 million VND/month. Not yet married, this salary has helped Mr. Duc stay in the city for 3 years. Currently, Mr. Duc rents a house with a colleague from the same company.
The cost of renting a house, electricity and water, and food almost fly out of my salary. Fortunately, I don't have a family, but with my wife and children, I probably won't be able to bear it. After working for a few years, I have almost no savings, even if I am suddenly or sick, I have to borrow from friends, and have a salary to pay..., Mr. Duc said.
According to Mr. Duc, the current income of workers is basically just enough to live on, and his salary of 10 million VND is also "incubated" by the personal income tax (PIT) payable. However, when there is a bonus or a sudden overtime period that increases income, Mr. Duc has to pay personal income tax.
"The 2025 Lunar New Year bonus, I was classified as A according to the company's internal assessment, and was rewarded with 28 million VND. After calculating, I was deducted 1.8 million VND in income tax. In fact, with an amount of 1.8 million VND, I can buy a few gift packages for people during Tet. For workers, the more you earn, the more you earn, the more you value. I really hope to review the starting price for personal income tax, Mr. Duc shared.
Ms. Bui Thi Ha's family is currently renting a house in Thanh Liet ward (Hanoi), the couple are both workers in Thanh Liet industrial cluster. Ms. Ha and her husband have a daughter in grade 1 this year. The total income of the couple is about 19 million VND/month, of which Ms. Ha earns more than 8 million VND/month, her husband earns more than 11 million VND/month.
Living in the city, Ms. Ha has to save as much as possible to have enough money to rent a house, electricity and water bills, cover family expenses and take care of her daughter's education. "The child is young so there should be more milk and food for the child, and the loudspeaker cannot pass like in the couple. I have to save and calculate every hundred thousand to make a living. Every month, I get 1 million VND and feel very excited, said Ms. Ha.
Although the income level is not subject to personal income tax, Ms. Ha said that to reduce the tax burden for workers and match the cost of spending in the city, the family deduction level needs to be increased by a minimum of 13 - 14 million VND for individuals paying taxes and 5 million VND for 1 dependent.
"The current tax payment from 11 million VND is too low," said Ms. Ha.
Must be based on practice
Speaking to Lao Dong reporter, Mr. Le Quang Trung - former Deputy Director in charge of the Department of Employment said that the calculation of personal income tax and family deduction for employees must be based on reality to calculate correctly and fully, helping employees reduce difficulties.
Mr. Trung said that after 17 years of implementation, the Law on personal income tax has been amended many times, but some regulations have not yet kept up with real life, including family deductions.
Over the past 5 years, the basic salary has been adjusted twice, the regional minimum wage has been adjusted 3 times and is preparing to be adjusted for the 4th time. However, the family deduction level has not been adjusted, said Mr. Trung.
Mr. Trung added that in big cities, workers in region I can earn 15 - 17 million VND/month, but their living standards, living expenses, and study costs are much higher than in other areas. Therefore, it is still unsatisfactory to think that the income of workers and laborers at the above level is high because the cost of ensuring their lives is also very expensive.
Proposing to build a draft Law on personal income tax (replacement) recently, many ministries, branches and localities have proposed increasing the family deduction for taxpayers and dependents based on the basic salary at the time of applying the family deduction of 1.49 million VND/month, now 2.34 million VND/month (an increase of 57.05%).
The current deduction level is applied from 2020 according to Resolution No. 954/2020/UBTVQH14: 11 million VND/month applied to taxpayers themselves; the family deduction level is 4.4 million VND/month for each dependent of taxpayers.
