The Ministry of Public Security proposes to exempt personal income tax on salaries and wages from the budget.

The Ministry of Public Security proposes to study and supplement regulations on tax exemption for income from salaries, wages and other amounts of a wage nature paid from the state budget.

The summary table of comments, acceptance and explanation of comments on the draft Law on Personal Income Tax (amended) has just been announced by the Ministry of Finance .

Accordingly, in commenting on the draft law, the Ministry of Public Security said it is necessary to study and supplement regulations on tax exemption for income from salaries, wages and other amounts of a wage nature paid from the state budget.

The reason is that according to Point a, Clause 1, Article 5 of the State Budget Law 2025, tax revenues in general and personal income tax in particular are state budget revenues.

Therefore, the state budget paying salaries, wages and similar amounts to employees, then collecting personal income tax on the salaries and wages paid by the state budget to submit back to the state budget creates additional processes, procedures and personnel to implement.

The Ministry of Public Security proposed to exempt personal income tax on salaries from the budget.

Explaining the comments, the Ministry of Finance said that the Personal Income Tax Law applies uniformly to all individuals with income reaching the tax threshold. The issue of excluding salaries and wages paid by the state budget is inappropriate and can easily cause mixed reactions in public opinion.

The general principle of personal income tax law is that individuals with the same taxable income must fulfill their tax obligations equally, regardless of whether they work in the public or private sector. The deductions for individuals are also regulated the same.

In addition, the Ministry of Public Security also suggested studying tax exemption for overtime pay, night shift pay, severance pay, and hardship allowance.

The proposed reason is that the above incomes are meant to motivate or compensate for risks for workers. Taxing will reduce the incentive of bonus policies, bonuses for exceeding labor productivity... At the same time, it will cause disadvantages for workers (especially night shift workers, overtime workers, and manual workers).

In addition, the Ministry of Public Security suggested that for taxable income from inheritance and gifts, the presiding agency should clarify the criteria for determining unregistered assets to ensure transparency and avoid arbitrary application. On the other hand, research should be conducted to add digital assets (cryptocurrencies, virtual assets, etc.) to the taxable income to keep up with modern financial trends.

With this comment, the Ministry of Finance said that the current Law on Personal Income Tax has provisions and the Law on Personal Income Tax (amended) continues to inherit them.

Mr. Dau Anh Tuan: The boundary between crime and administrative violations has not been firmly established. Institutional and legal bottlenecks are hindering the development of the private economic sector, along with recommendations to amend legal regulations that risk criminalizing business activities, which were dissected by experts at VPSF 2025.

Source: https://vietnamnet.vn/bo-cong-an-de-xuat-mien-thue-thu-nhap-ca-nhan-voi-tien-luong-tu-ngan-sach-2443149.html