The Ministry of Finance is currently conducting a comprehensive review and assessment of the Personal Income Tax Law, including the issue of family deductions, to report to the Government, the National Assembly Standing Committee and the National Assembly for consideration of amendments and supplements.
Recently, the Ministry of Finance has responded to the petitions of voters from 6 provinces and cities: Hanoi, Ho Chi Minh City, Bac Kan, Dong Nai, Lang Son and Nghe An regarding the amendment of the Personal Income Tax (PIT) Law, in the direction of increasing the family deduction for taxpayers, in line with the current socio-economic situation and living standards, as well as closely following the State's salary increase policy from July 1.
Currently, employees with a salary of 17 million VND/month (with 1 dependent), after deducting social insurance and health insurance, still do not have to pay personal income tax.
Under current regulations of the Personal Income Tax Law, taxpayers are allowed to deduct items such as social insurance, health insurance, unemployment insurance and professional liability insurance for certain mandatory occupations, along with family deductions, charitable contributions, subsidies and allowances as prescribed. The remaining income will be the basis for calculating personal income tax.
The current deduction for taxpayers (VND 11 million/month) is 2.2 times the average income per capita, higher than in other countries (usually 0.5 to 1 times) and also exceeds the income of the top 20% of income earners. The deduction for dependents is almost equivalent to the average income per capita.
With the current family deduction of VND11 million for the taxpayer and VND4.4 million for each dependent, a person with an income of VND17 million/month (with 1 dependent) or VND22 million/month (with 2 dependents), after deducting insurance premiums, still does not have to pay personal income tax.
Based on the 2023 Population Living Standards Survey Report of the Directorate of Statistics, the average income per capita in Vietnam in 2023 reached 4.96 million VND/month. The richest household group (accounting for 20% of the population) had an average income of 10.86 million VND/person/month.
