In the latest draft of the Personal Income Tax Law (amended), the Ministry of Finance proposed that taxpayers will be deducted from their income before calculating tax for expenses for health, education - training of themselves and their dependents. This is a new point compared to current regulations.
The scope of deductible expenses and the level of deductible expenses need to be considered and calculated appropriately to both achieve the set goals but also not reduce the role of personal income tax policies as a tool for income regulation and income redistribution in the economy.
The Ministry of Finance proposes to assign the Government to provide detailed regulations to be flexible and suitable for the socio-economic situation.
The current Law on Personal Income Tax stipulates that social insurance, health insurance, unemployment insurance, and occupational liability insurance contributions for some mandatory participating sectors and occupations are not included in taxable income; special subsidies and allowances; as well as charitable and humanitarian contributions.
This draft law also adds content to adjust the taxable income threshold for some income items. Accordingly, individuals with income from winning prizes, from copyrights, from commercial franchises, from inheritance and gifts will pay 10% tax on the income exceeding 20 million VND. Previously, the law stipulated the taxable threshold as over 10 million VND.
Through the consultation process, many opinions participated in the proposal to increase this taxable income threshold to synchronize with the adjustment of the family deduction threshold and tax payment revenue threshold for business individuals.
For real estate transfers, current law stipulates that the time to determine taxable income is when the transfer contract is effective. However, in reality, problems arise when the seller authorizes the buyer to pay taxes on behalf of the buyer, leading to the management agency only determining tax obligations when completing the name change procedure.
To overcome this, the Ministry of Finance proposes to add a provision: The time to determine taxable income from real estate transfers is when the contract is valid or when registering the right to use and own real estate at a state agency.
According to the plan, the Ministry of Finance will submit to the Government to submit to the National Assembly the draft Law on Personal Income Tax (amended) at the 10th session of the 15th National Assembly, taking place in October 2025. The law is expected to take effect from July 1, 2026.
