On October 17, 100% of members of the National Assembly Standing Committee present approved the resolution of the National Assembly Standing Committee on adjusting the family deduction level of personal income tax.
According to the resolution, the National Assembly Standing Committee decided to adjust the family deduction level of personal income tax as follows:
The deduction for taxpayers is 15.5 million VND/month (186 million VND/year). The deduction for each dependent is 6.2 million VND/month.
This Resolution takes effect from the date of signing and applies from the tax calculation period in 2026 (March 2027).
Thus, from the current level of 11 million VND/month for taxpayers and 4.4 million VND/month for each dependent, it has increased by over 40%, equivalent to 15.5 million VND and 6.2 million VND.
Previously, Deputy Minister of Finance Nguyen Duc Chi presented the Government's proposal on the draft resolution.
According to Deputy Minister Nguyen Duc Chi, this increase is due to the increase in per capita income and GDP per capita.
According to calculations, by the end of 2025, the consumer price index (CPI) has fluctuated over 20% compared to the time of adjusting the most recent family deduction (in 2020) of 21.24%, thereby ensuring the legal basis for adjusting the family deduction.
Adjusting the family deduction level needs to be consistent with price fluctuations, in addition to the consumer price index (CPI) which is an index reflecting general price fluctuations, there are other factors that also affect prices such as per capita income, average GDP, average spending per capita in a certain period...
According to data from the Statistical Office, the fluctuation in per capita income and GDP per capita from 2020 to present is about 40-42%.
Therefore, based on the growth rate of per capita income and GDP per capita in 2025 compared to the above-mentioned year in 2020, the family deduction level can be adjusted.
The deduction for taxpayers themselves is from 11 million VND/month to about 15.5 million VND/month (an increase of about 40.9% compared to the current level).
The deduction for each dependent increases from 4.4 million VND/month to about 6.2 million VND/month (an increase of about 40.9% compared to the current level).
According to this plan, individuals who are taxpayers (if there are no dependents) have an income of VND 17 million/month, after deducting insurance amounts of 10.5% (8% social insurance + 1.5% health insurance + 1% unemployment insurance) is VND 1.785 million (VND 17 million x 10.5%) + VND 15.5 million (deducted for taxpayers themselves) = VND 17.285 million.
Therefore, with an income of 17 million VND/month, this person still does not have to pay tax (The income exceeding 17.285 million VND/month is only subject to tax at a tax rate starting from 5%).
In case the taxpayer has 1 dependent with an income of VND 24 million/month, after deducting insurance amounts of VND 10.5% x 24 = VND 2.52 million + VND 15.5 million (deductible to the taxpayer himself) + VND 6.2 million (deductible to 1 dependent) = VND 24.22 million.
With an income of VND24 million/month, this person still does not have to pay tax (the income exceeding VND24.22 million/month is only subject to tax at a tax rate starting from 5%)...
Chairman of the Finance and Budget Committee Phan Van Mai said that the majority of opinions in the Standing Committee of the Committee agreed with the orientation of raising the family deduction level and basically agreed with the family deduction level proposed by the Government.
Regarding the effectiveness of the implementation, Mr. Phan Van Mai said that many opinions suggested applying it immediately in the 2025 tax calculation period. However, some opinions agreed with the proposal to apply regulations from the 2026 tax calculation period to ensure convenience in tax management.
