The law is applying the provisions in Article 19 on family deduction, stating the deduction for taxpayers at 11 million VND/month, the deduction for dependents at 4.4 million VND/month and these levels are only adjusted when the consumer price index is over 20% compared to the time the law takes effect or the most recent adjustment time.
In the draft, the Ministry of Finance did not include this specific figure but proposed: The National Assembly assigned the Government to regulate the family deduction level in accordance with the socio-economic situation in each period.
With the new regulation in the Law on Personal Income Tax (replacement), flexibility has been much higher, closely following real life, instead of having to wait up to 5-7 years to amend it once as at present, helping to regulate the deduction level more appropriately for people, especially workers.
In the context of the Vietnamese economy gradually recovering and growing, global inflation and supply chain fluctuations, the role of workers is becoming increasingly important. Moreover, to complete the GDP growth target of over 8% in 2025 and double digits in the following years, policies need to propose solutions to remove the difficulties that workers are suffering. In particular, the draft amendment to the Law on Personal Income Tax needs to put employees at the center of the policy, with a more humane and timely viewpoint.
Talking with Lao Dong Dr. Nguyen Ngoc Tu (University of Business and Technology) proposed a deduction that should be increased to 18 million VND/month for taxpayers and 9 million VND/month for each dependent and should be applied right from the 2025 tax calculation period, instead of waiting until 2026.
This proposal is reasonable and technically feasible. Because personal income tax for 2025 will only be finalized in April 2026, there is still enough time to adjust the tax table, guide the implementation and update the tax declaration software. In the first 6 months of 2025, the personal income tax revenue reached nearly 70% of the estimate for the whole year - showing that there is still room for fiscal provisions. Once the budget is not negatively affected, "income liberation" for workers should be implemented more soon.
It should be emphasized that tax policies - especially personal income tax - are not only a tool for budget regulation, but also a clear manifestation of social justice. Employees who pay taxes in full, on time, and comply with the law also need to apply a tax rate appropriate to their living standards. Tax policies cannot be a burden, but must be a lever to motivate workers to work with peace of mind, increase consumption and contribute back to the economy as the main consumer force.
If they are supported at the right time and place, then the tax policy is not only to support individual workers, but also to support the entire economy. The Law on Personal Income Tax (replacement) when aimed at the rights and living standards of workers - will be a lever for a sustainable, fair and humane public finance system.
