According to the draft Resolution on adjusting the family deduction level of the National Assembly Standing Committee sent to the Ministry of Justice for appraisal, the Ministry of Finance proposed to increase the family deduction for taxpayers from 11 million VND/month to 15.5 million VND, and for dependents from 4.4 million VND/month to 6.2 million VND.
This plan is built on the basis of the growth rate of per capita income in the period of 2020 - 2025, about 40 - 42%. Thus, the new deduction corresponding to an increase of about 40.9% compared to the current regulation.
The Ministry of Finance said that this adjustment will directly affect millions of people working in salary earners, in which groups with average and low incomes will benefit significantly.
In case the individual does not have dependents, for example, a person 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 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.
According to the Ministry of Finance, raising the family deduction level is in line with the context of high living prices, contributing to reducing the burden on salaried workers, creating financial space for households, thereby stimulating consumption and promoting growth.
However, the state budget will reduce part of the revenue from personal income tax. The Ministry of Finance affirmed that it will carefully balance between supporting people and ensuring resources for the budget, in which social security factors are prioritized.
