The Ministry of Finance has just submitted a draft Resolution of the National Assembly Standing Committee on adjusting the family deduction level in calculating personal income tax, applicable from the tax calculation period in 2026.
The content of the draft is of interest to workers, because the proposal of a new personal income tax policy will affect the lives of many people and many families.
The family deduction applied from July 2020 to present for individuals is 11 million VND/month and for each dependent is 4.4 million VND/month.
The Ministry of Finance proposes 2 options, in which option 2 (high level) increases the deduction for taxpayers to 15.5 million VND/month (186 million VND/year); each dependent is deducted 6.2 million VND/month. This adjustment is 4.5 million VND/month and 1.8 million VND/month respectively.
The majority of opinions said that the above proposal of the Ministry of Finance is consistent with reality. Prices fluctuate, current spending levels are different from previous years, from consumer goods to services for living and travel.
The lives and activities of the people have been increasingly improved, each individual not only needs food and clothing but also spiritual and cultural dishes, including artistic enjoyment, cinema, tourism...
Individuals with a stable income at a high level must always improve their professional qualifications and update with new knowledge. They must have the cost of studying, researching, and tools to supplement knowledge.
An individual always has social relationships and interacts with the community. On holidays or "ban, hon, tang, ho", everyone participates, that is the cultural tradition of the nation, connecting human affection with the community. These relationships, although not many, still account for a part of the family's expenses.
Meeting the above needs, only packaging in 11 million VND/month is not enough. Therefore, if personal income tax is imposed at this level, it is inappropriate and unfair to taxpayers.
For each dependent, the family deduction of 4.4 million VND/month is outdated. Raising a child of school age requires not only clothing costs, but many other expenses, especially education. For elderly parents, there is an additional cost for health care, that is the big deal.
