Proposal to increase by more than 40%, assigning the Government to make flexible adjustments
On the afternoon of October 13, the National Assembly Standing Committee gave its opinion on the draft revised Law on Personal Income Tax. The report submitted by the Ministry of Finance, which outlined many important changes, notably adjusting the family deduction level.
According to the draft, the family deduction for taxpayers and dependents will be assigned to the Government to stipulate in accordance with the socio-economic situation of each period, to ensure flexibility and implementation of decentralization and delegation of authority policies.
The Government has drafted a resolution to submit to the National Assembly Standing Committee at the October 2025 session, in the direction of increasing the family deduction level by more than 40% compared to the current level. From 11 million VND/month for taxpayers and 4.4 million VND/month for each dependent, it will increase to 15.5 million VND and 6.2 million VND, respectively.
The adjustment is calculated based on the increase in GDP per capita and average income in the period of 2020 - 2025.
In addition, the draft also amends regulations on charitable and humanitarian contributions that are deducted to suit reality and encourage social activities.
Another change is the adjustment of the progressive tax table in part applied to income from salaries and wages. The new tax rate is reduced from 7 levels to 5 levels (5%, 15%, 25%, 30%, 35%) and expands the gap between levels. Level 1 (5%) raises the tax rate from 5 to 10 million VND/month, level 2 (15%) from 15 to 30 million VND/month, the highest level (35%) from 80 to 100 million VND/month.
Should be adjusted in 2025
Reviewing the content of the bill, Chairman of the Economic and Financial Committee Phan Van Mai said that amending the family deduction level is necessary, in line with the actual situation and has received great attention from the people.
Previously, on October 4, the Ministry of Finance responded to voters in Dong Thap province about promptly adjusting the family deduction level. According to the Ministry of Finance, the consumer price index (CPI) for the period 2020 - 2025 is expected to fluctuate over 20% (about 21.24%), exceeding the prescribed threshold to consider adjustment. Therefore, increasing the deduction level is an urgent issue.
However, the new draft only proposes to be applied from the 2026 tax calculation period, causing many National Assembly deputies to think that it is not suitable for the current context.
The National Assembly Delegation of Quang Tri province proposed to apply it right from the 2025 tax calculation period to promptly share difficulties with taxpayers. According to the group, from 2020 to now, the family deduction has remained the same while living expenses, prices of goods and services have increased sharply, especially in large cities.
The National Assembly Delegation of Cao Bang province also said that it should be applied right from the 2025 tax calculation period, not wait until 2026, because if delayed, the policy will go beyond reality and cause disadvantages for taxpayers.
Similarly, the Gia Lai Provincial National Assembly Delegation determined that the application of the new family deduction level from 2026 is not appropriate. If the resolution is passed in the coming months, it will still be promptly applied to the tax settlement period in 2025, avoiding taxpayers' losses.
Concerns that the new family deduction level is still outdated
According to Dr. Nguyen Ngoc Tu, lecturer at Hanoi University of Business and Technology, the increase of more than 40% for the period 2020 - 2025 is relatively close to reality, but has not met practical expectations.
"In the context of recent adjustments to reduce pressure from previous years, this figure has not met expectations. A regulation when changed, especially the family deduction level, needs to be taken into account that this regulation will be implemented in the future, otherwise it will become outdated by 2027 - 2028," said the expert.
He said that from 2025 onwards, the economy will enter a new stage of development, with increased domestic and foreign investment capital, a forecast growth rate of high, causing workers' income to increase, and commodity prices to increase. A bowl of pho today will not be flat in the following years. Mr. Tu also emphasized the need to prepare for the period of 2026 - 2030, even until 2035.
