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.
Accordingly, 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.
Previously, the Ministry of Finance presented the Government's proposal on the draft resolution.
The Ministry of Finance said that according to this plan, in case individuals do not have dependents, for example, people with an income of 15 million VND/month, when deducting social insurance, health insurance, unemployment insurance, ... this person will not have to pay taxes.
With a salary of VND20 million/month, after deducting 10.5% insurance is VND2.1 million, the family deduction is VND13.3 million, the tax must be paid VND120,000/month, accounting for 0.6% of total income.
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%)...
In case the employee has 1 dependent, with an income from salary and wages of VND 25 million/month, after deducting social insurance, health insurance, unemployment insurance, etc., this person must pay personal income tax of VND 33,750/month.
Similarly, at the rate of 30 million VND/month, the tax amount is 265,000 VND.
In case an individual has two dependents, the total deduction (family income, dependence, insurance) can be up to 31.05 million VND, causing people with an income of 30 million VND/month not to have to pay taxes.
With an income of 80 million VND/month and one dependent, the current personal income tax payable is more than 13.53 million VND. If the new family deduction level is applied, the tax will be reduced to 11.64 million VND, saving 1.89 million VND.
People with an income of VND 100 million/month and a dependent currently have to pay VND 19.76 million. After adjustment, the tax amount decreased to 17.64 million VND, saving about 2.1 million VND.
