Ministry of Public Security proposes to exempt personal income tax on salaries from the budget

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

According to current regulations, individuals with income from salaries and wages pay taxes according to the progressive tax schedule, regardless of whether the paying unit is within or outside the State budget.

Commenting on the draft law, the Ministry of Public Security said that 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.

"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 other amounts of salary and wage nature to employees, then collecting personal income tax on the salaries and wages paid by the State budget to submit to the State budget creates additional processes, procedures, departments and personnel to collect the State budget," the Ministry of Public Security stated.

Responding to this proposal, the Ministry of Finance explained that the Personal Income Tax Law applies uniformly to all individuals with income reaching the taxable 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 to the above opinion, the Ministry of Public Security also proposed to study tax exemption for "overtime pay", "night shift pay", "severance allowance", "hardship allowance" because the above income has the nature of encouragement or risk compensation for employees.

Taxation will reduce the incentive of bonus policies, bonuses for exceeding labor productivity... and at the same time cause disadvantages for workers, especially night shift workers, overtime workers, and manual workers.

In addition, for taxable income from inheritance and gifts, the presiding agency needs to 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.

In response, the Ministry of Finance said that the current Law on Personal Income Tax has stipulated this content and the Law on Personal Income Tax (amended) continues to inherit it.

Source: https://dantri.com.vn/kinh-doanh/bo-cong-an-de-xuat-mien-thue-thu-nhap-ca-nhan-voi-tien-luong-tu-ngan-sach-20250916183640573.htm