The Ministry of Finance is conducting a comprehensive review and assessment of the Personal Income Tax Law, including the issue of family deductions, to report to the Government, the National Assembly Standing Committee and the National Assembly for consideration of amendments and supplements in the coming time.
This comprehensive review and assessment is a move demonstrating the Ministry of Finance's active and timely listening and response, stemming from voters' recommendations in many localities, most recently from 6 provinces and cities: Hanoi, Ho Chi Minh City, Bac Kan, Dong Nai, Lang Son and Nghe An.
This is a reasonable and timely step in the context that the basic salary has increased by 30% since July 1, 2024, leading to an increase in the total income of officials and civil servants.
As a result, many people who were previously exempt from personal income tax are now subject to this tax. Meanwhile, commodity prices have increased along with wage increases, making the current family deduction (VND4.4 million) no longer enough to meet the spending needs of dependents.
In fact, since the Personal Income Tax Law was implemented, there have been two adjustments to the family deduction level to suit economic conditions.
For the first time in 2012, the National Assembly issued the Law amending and supplementing a number of articles of the Law on Personal Income Tax (No. 26/2012/QH13), increasing the family deduction for taxpayers from VND 4 million to VND 9 million per month.
For the second time in 2020, the National Assembly Standing Committee issued Resolution 954/2020/UBTVQH14, adjusting the family deduction to VND 11 million/month for taxpayers and VND 4.4 million/month for each dependent.
Currently, reality shows that the Personal Income Tax Law, especially the family deduction level, has revealed many shortcomings and become outdated compared to the actual situation.
As Dr. Nguyen Ngoc Tu - lecturer at Hanoi University of Business and Technology - commented on Lao Dong Newspaper that "the income of salaried workers is being eroded", so the adjustment again is also normal, inevitable and necessary.
However, the adjustment cannot take place immediately, although it is very urgent because, as Ms. Nguyen Phuong Thuy - Vice Chairman of the Law Committee of the National Assembly, at the closing press conference of the 7th Session of the 15th National Assembly, emphasized that although public opinion and National Assembly deputies all believe that this is an issue that needs to be implemented soon, in order for a draft law to be included in the law and ordinance making program of the National Assembly, strict procedures and processes must be followed.
However, taxpayers have the right to hope that this adjustment will soon become a reality because, as Ms. Thuy said: When the Ministry of Finance completes the preparation and advice to the Government on the draft amendment, the National Assembly Standing Committee will review and report to the National Assembly to add this project to the agenda of the nearest session possible!
