Voters in the provinces of Binh Dinh, Ha Giang, Thai Nguyen, Tra Vinh, Tuyen Quang, and Tay Ninh simultaneously proposed adjusting the level of family deductions and partially progressive tax schedules to suit reality, especially after salary increases. from July 1. The Ministry of Finance has just issued a written response to voters' petitions.
The Ministry of Finance said that the Law on Personal Income Tax (PIT) applied from January 1, 2009 stipulates a deduction level for taxpayers of 4 million VND/month and a deduction level for each dependent of 1.6 million VND. million VND/month.
The Law amending and supplementing a number of articles of the Law on Personal Income Tax No. 26/2012 takes effect from January 2013, stipulating a taxpayer deduction of 9 million VND/month and a deduction for each dependent of 3.6 VND. million VND/month.
At the same time, adding a regulation that when CPI fluctuates over 20% compared to the time the Law takes effect or the time of adjusting the most recent family deduction, the Government submits to the National Assembly Standing Committee (UBTVQH) to adjust the reduction. Deduct family circumstances in accordance with price fluctuations to apply to the next tax period.
By June 2020, the National Assembly Standing Committee issued Resolution 954 increasing the deduction level for taxpayers to 11 million VND/month and the deduction level for each dependent to 4.4 million VND/month. The adjustment contributes to reducing obligations for taxpayers.
According to the Ministry of Finance, the specific deduction level needs to be carefully calculated, ensuring it is higher than GDP per capita, regional minimum wage, and average spending per capita in a certain period.
The Ministry of Finance cited the 2023 population living standards survey report published by the General Statistics Office showing that Vietnam's average income per capita/month in 2023 (at current prices) is 4.96 million VND. The group of households with the highest income (including the richest 20% of the population) average 10.86 million VND/month/person.
With the current deduction for taxpayers (11 million VND/month), 2.2 times higher than the average income per capita; The deduction level for dependents (4.4 million VND/month) is close to the current average income per capita.
Therefore, people with income from salary or wages are 17 million VND/month (if there is one dependent) or 22 million VND/month (if there are two dependents), after deducting social insurance payments. , health insurance, unemployment insurance... also do not have to pay personal income tax.
According to data from the General Statistics Office, CPI in 2020 increased by 3.23%; 2021 increases by 1.84%; in 2022 it will increase by 3.15% and in 2023 it will increase by 3.25%. CPI has fluctuated less than 20% since the time of adjusting the family deduction level most recently in 2020. According to current regulations, the family deduction level cannot be adjusted yet.
According to the Ministry of Finance, implementing personal income tax policy plays a very important role in implementing redistribution policy. Along with other revenue sources, revenue from personal income tax has created a state budget fund to meet many spending needs for development investment, national defense and security, and ensuring social security.
Currently, the Ministry of Finance is reviewing and evaluating the overall Personal Income Tax Law. Accordingly, the level of family deductions and progressive tax schedules will be reviewed to report to the Government and the National Assembly Standing Committee for consideration of amendments and supplements according to the National Assembly's Law-making Program. It is expected that the revised Personal Income Tax Law will be registered in the Law Development Program in 2025, submitted to the National Assembly for comments in October 2025, and approved in May 2026.
