Is the first home loan deductible for personal income tax?

(NLDO) - Some financial experts have proposed that the draft Law on Personal Income Tax (replacement) add a deduction for interest on loans to buy the first home.

Overview of the conference to collect comments on the draft Law on Personal Income Tax (replacement) organized by the Ho Chi Minh City Tax Consultants and Agents Association on the morning of August 5

Parents' expenses are also deductible from personal income tax.

According to the draft Law on Personal Income Tax (PIT), taxpayers are allowed to deduct from their taxable income expenses for healthcare, education and training, and expenses of their parents, spouses, and dependent children according to Government regulations.

Although this is the first time the Personal Income Tax Law clearly stipulates deductions for medical and education-training expenses, at the Conference to collect comments on the draft Personal Income Tax Law (replacement) organized by the Ho Chi Minh City Tax Consultants and Agents Association on the morning of August 5, Mr. Nguyen Thai Son, former Head of the Personal Income Tax Department (formerly Ho Chi Minh City Tax Department), said that these expenses must meet the conditions on invoices and documents as prescribed and cannot be paid from other sources.

At the same time, Mr. Son proposed that the Personal Income Tax Law (replacement) add deductions for expenses to meet essential needs such as rent, bank loan interest for a first-time home purchase, and the cost of purchasing an electric vehicle for commuting to work or on business trips.

Proposal for home loan to reduce personal income tax

According to Mr. Nguyen Duc Nghia, a member of the Ho Chi Minh City Tax Consultants and Agents Association, in reality, each person has different circumstances and spending needs to meet the search for higher income or cover unusual expenses in life, such as housing, education, healthcare, etc.

Therefore, Mr. Nghia proposed that the Personal Income Tax Law (replacement) add a specific deduction for the interest on loans to buy the first house, with a specific deduction limit, equivalent to the value of a 2-bedroom social housing apartment in the suburbs.

This not only helps to solve the housing needs of taxpayers but also contributes to stimulating the development of the real estate market.

Source: https://nld.com.vn/vay-ngan-hang-mua-nha-dau-tien-co-duoc-giam-tru-thue-thu-nhap-ca-nhan-khong-196250805112952123.htm