In the Draft Resolution of the National Assembly Standing Committee on adjusting the family deduction level, which is being consulted by the Ministry of Finance , the Ministry of Finance proposes two options for increasing the deduction level.
Option 1, adjusted according to the growth rate of the consumer price index (CPI). The cumulative CPI from 2020 to 2025 increased by about 21.24%. Accordingly, the Ministry of Finance proposed to increase the family deduction for taxpayers to 13.3 million VND/month and for dependents to 5.3 million VND/month, applicable from 2026.
According to the Ministry of Finance, this plan is in accordance with the current Law on Personal Income Tax, closely following the basis for applying deductions according to essential living needs and inflation from the time of adjusting the most recent family deduction level (2020).
Option 2: Adjust the family deduction level according to the growth rate of per capita income and per capita GDP. The Ministry of Finance proposes to increase the deduction level for the taxpayer himself to 15.5 million VND/month and for dependents to 6.2 million VND/month, applicable from 2026.
According to the Ministry of Finance's calculations, this policy will reduce state budget revenue by about VND12,000 billion under option 1 and VND21,000 billion under option 2. However, state budget revenue can be partially offset by increased revenue from other consumption taxes due to increased disposable income of taxpayers.
Regarding the progressive tax schedule, in the Draft, the Ministry of Finance proposes two options to reduce the number of levels and widen the income gap, in order to ensure more effective regulation for high-income groups.
Option 1, taxable income is divided into 5 levels: Taxable income up to 10 million VND/month applies a tax rate of 5%; income from over 10 to 30 million VND is subject to a tax rate of 15%; over 30 - 50 million VND is 25%; over 50 - 80 million VND is at 30%; over 80 million VND is subject to a tax rate of 35%.
Option 2, still 5 tax brackets but adjusting the income gap to widen at higher brackets.
Specifically, taxable income up to 10 million VND/month is subject to a tax rate of 5%; income over 10 to 30 million VND is subject to a tax rate of 15%; over 30-60 million VND is subject to a rate of 25%; over 60-100 million VND is 30%; over 100 million VND is subject to a tax rate of 35%.
According to current regulations, the family deduction for taxpayers is 11 million VND/month and each dependent is deducted 4.4 million VND/month.
The progressive tax schedule for wage earners currently consists of 7 levels, with tax rates ranging from 5% to 35%, but the tax schedule is dense.
Source: https://hanoimoi.vn/de-xuat-muc-giam-tru-gia-canh-cho-nguoi-nop-thue-len-15-5-trieu-dong-thang-709916.html
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