According to the Ministry of Finance, this tax exemption regulation is to encourage people to deposit savings, ensure capital for the economy, and at the same time support retirees and people with disabilities to have a stable source of income. This policy also helps banks mobilize long-term capital to serve credit growth and invest in economic development. Maintaining this regulation is considered an important measure to stabilize the financial system and protect the rights of the people.
Previously, on November 22, 2024, the Ministry of Finance issued Official Letter No. 12738/BTC-CST to widely seek opinions on the Government Information Portal. On January 22, 2025, the Ministry continued to send Official Letter No. 930/BTC-CST to the Ministry of Justice for appraisal opinions. On February 12, 2025, the Ministry of Justice held a meeting to appraise the proposal to develop a law.
The Ministry of Finance also refers to international experience, showing that many countries such as Thailand, China, and South Korea impose personal income tax on savings interest. However, the Ministry believes that if this tax is applied in Vietnam, it could negatively affect the psychology of depositors, reduce the amount of deposits in the banking system, thereby affecting the stability of the macro economy and the national financial system.
In addition to maintaining the regulation on exemption of savings interest, this draft also proposes important adjustments to personal income tax, including:
Reduce the personal income tax rate to below 7 to simplify the tax system, creating convenience for taxpayers.
Adjust the family deduction level in accordance with changes in living standards and consumer price index.
Supplementing regulations on deductions for charitable and humanitarian contributions to encourage the spirit of social responsibility.
Exemption and reduction of taxes for some priority areas to attract high-quality human resources to serve socio-economic development.
The Ministry of Finance is also considering improving procedures for declaring and settling personal income tax to reduce administrative burdens, creating more favorable conditions for individuals and businesses in the process of fulfilling tax obligations.
The Ministry of Finance affirmed that maintaining the exemption of personal income tax with savings interest and tax reforms this time is to ensure fairness and transparency in tax policy, while being consistent with the current socio-economic situation. After receiving official opinions from ministries, branches and localities, the Ministry will complete the dossier and submit it to the Government before reporting to the National Assembly for consideration and approval.
