Comprehensive review, many comments on policies
The Ministry of Finance is urgently completing the draft Law on Personal Income Tax (replacement) to submit to the National Assembly for consideration at the October 2025 session. This is an important step to update and comprehensively amend inappropriate regulations, towards a fair, transparent and synchronous tax system, meeting the practical requirements of socio-economic development and institutionalizing major policies of the Party and State.
The draft Law on Personal Income Tax is widely consulted and commented on with the goal of ensuring fairness among target groups and creating consensus in society. The focus of this process is to adjust inadequacies in tax calculation methods, taxable incomes, tax exemptions, tax management procedures, etc.
According to Mr. Truong Ba Tuan - Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance), this draft law is built on the basis of comprehensive assessment of current regulations. The amended content focuses on major groups of issues such as: Completing regulations on taxable income and tax calculation methods; reviewing and supplementing tax exemptions; amending regulations on tax declaration and deduction. One of the important contents is to adjust the progressive tax table, family deduction levels and add special deductions.
Currently, the progressive tax table partially applies to income from salaries and wages, including 7 levels. The Ministry of Finance is studying a plan to reduce the number of steps and simplify the tax table to facilitate taxpayers, while ensuring reasonableness and fairness among income groups.
In addition, regulations on declaration, deduction and settlement will also be reviewed to unify with the Law on Tax Administration and other relevant laws, in order to reduce procedures and improve management efficiency.
This comprehensive amendment is expected to create a modern, fair tax system, in line with development trends, both ensuring sustainable revenue and contributing to promoting major goals such as green transformation, human resource development and quality growth.
Completing policies, creating social consensus
One of the most concerned issues is the family deduction policy. Deputy Minister of Finance Cao Anh Tuan said that the accumulated consumer price index (CPI) from the most recent adjustment period has nearly reached 20% - the prescribed level to activate the adjustment. Therefore, the ministry has proactively submitted to the National Assembly Standing Committee an adjustment plan this year.
According to the Deputy Minister, the Ministry of Finance is calculating many options to increase the family deduction level, in which the national average will be more beneficial for people in poor provinces, remote areas. However, the policy needs to ensure fairness and avoid sudden impacts on budget revenue.
Deputy Minister Cao Anh Tuan emphasized that the Law on personal income tax was promulgated in 2007, applied since 2009, and has been in place for more than 15 years. Therefore, reviewing and amending is necessary to keep up with actual fluctuations. He said that the Ministry is calculating a suitable adjustment roadmap, which can last for the next 5 years.
"Tax collection must ensure the nature of income, in accordance with international practices and practices. However, it is also necessary to pay attention to the characteristics of Vietnam and the rapid fluctuations of markets such as real estate, stocks, and digital platforms. The Ministry of Finance will continue to listen to opinions from businesses, associations, localities and experts to build fair and transparent policies, while contributing to stabilizing the economy and increasing budget revenue sustainably" - the Deputy Minister of Finance affirmed.
The tax authority also said that it is actively participating in policy making and completion. Mr. Mai Son - Deputy Director of the Tax Department - affirmed: "We will fully absorb the opinions of people, organizations and experts in the process of perfecting policies to ensure close practice and create high consensus in society. Our goal is to build a policy that is both suitable for management practices and creates favorable conditions for taxpayers to fulfill their obligations according to regulations, towards a more equal and modern business environment".
