At the regular press conference for the second quarter of 2025 held on the afternoon of July 2, Mr. Truong Ba Tuan - Deputy Director of the Department of Tax, Fee and Charge Policy - said that the Ministry of Finance has submitted to the Government a dossier proposing to develop a Law on Personal Income Tax (replacement) to report to the National Assembly Standing Committee, adding it to the law and ordinance making program in 2025. The goal is to submit the draft law at the National Assembly session next October.
According to Mr. Tuan, the Ministry of Finance has comprehensively assessed the current Law, clearly identifying the problems and inadequacies in practice. One of the notable points is that the current progressive tax rate is considered complicated, creating an unreasonable feeling for the average income group. The Ministry is studying a plan to shorten the number of tax levels, extend the gap between taxable income levels to ensure fairness, transparency and easy access.
Another important content is to adjust the family deduction level. According to the Ministry of Finance, the current deduction is no longer suitable for price fluctuations and living standards. Therefore, the draft law is designed in the direction that the Government can adjust periodically, without having to wait for submission to the National Assembly. This approach aims to ensure flexible and timely policies in the face of changes in real life.
To reduce the spending burden for people, especially in urban areas, the Ministry of Finance is considering a plan to add special deductions for health and education costs - two areas that account for an increasingly large proportion of household spending. At the same time, the Ministry also reviewed all taxable incomes, in order to reduce administrative burdens and develop a stabilization method, accurately reflecting the nature of revenue sources.
On the other hand, tax-exempt incomes will also be carefully reviewed. The Ministry of Finance aims to use tax policies as a tool to support attracting high-quality human resources, especially technology experts, scientists, and creative workers - in line with the orientation set out in Resolutions 193 and 198 of the National Assembly.
Regarding the group of households and individuals doing business, Mr. Truong Ba Tuan said that the draft Law will also be adjusted in an open direction. Specifically, the revenue management model will not be strictly regulated in the law, but will build a flexible framework to adjust from time to time. This is to keep up with the development of new business models, especially in the field of e-commerce and digital services.
With an scope of impact for tens of millions of taxpayers, the new draft Law on Personal Income Tax is expected to create fundamental changes in tax management, ensuring harmony between reform requirements and socio-economic realities. "We have drafted the draft in a cautious but determined spirit, ensuring accurate reflection of the contribution capacity of each income group, while providing maximum support to people and businesses," Mr. Truong Ba Tuan emphasized.
