Finalize raising family deduction to 15.5 million VND/month

On the morning of October 17, the National Assembly Standing Committee voted to pass a Resolution on adjusting the family deduction level of personal income tax.

According to the Resolution, the deduction for taxpayers is 15.5 million VND/month (186 million VND/year). The deduction for each dependent is 6.2 million VND/month. This Resolution will apply from the 2026 tax period.

With the new family deduction, an individual taxpayer (without dependents) with an income of 17 million VND/month still does not have to pay tax. Income exceeding 17,285 million VND/month will be subject to tax at a tax rate starting at 5%.

In case the individual taxpayer has 1 dependent with an income of 24 million VND/month, he/she still does not have to pay tax. The income exceeding 24.22 million VND/month will be subject to tax with a tax rate starting from 5%. In case the individual taxpayer has 2 dependents, the income exceeding 31.155 million VND/month will be subject to tax.

Before the Resolution was passed, presenting the report, Deputy Minister of Finance Nguyen Duc Chi said that the Government had proposed two options for adjusting the personal income tax family deduction level.

Option 1: Increase family deduction from 11 million VND/month to 13.3 million VND/month; at the same time, increase deduction for each dependent from 4.4 million VND/month to 5.3 million VND.

Implementing this plan, the state budget is expected to decrease by about 12,000 billion VND/year compared to the revenue level and number of taxpayers according to current regulations.

Option 2 : Adjust the family deduction to 15.5 million VND/month and the deduction for each dependent to 6.2 million VND/month.

Implementing this plan, the state budget is expected to reduce about 21,000 billion VND/year compared to the revenue level and number of taxpayers according to current regulations.

Presenting the review of this content, Chairman of the Economic and Financial Committee Phan Van Mai said that the majority of opinions in the Standing Committee of the Economic and Financial Committee agreed with the direction of increasing the family deduction level and basically agreed with the family deduction level proposed by the Government.

However, some opinions say that the proposed family deduction level may be appropriate at the present time, but because it is only calculated based on the growth rate of the indicators in 2025 compared to 2020, it does not meet practical requirements.

Therefore, it is recommended that the Government consider to have the necessary space, accordingly, it can consider the option of calculating the increase rate according to the growth rate of income or GDP per capita estimated to be implemented in 2025 or expected in 2026 and the following years compared to the implementation in 2020.

In addition, some opinions proposed to stipulate a higher family deduction level than the Government's proposed plan.

Regarding the effective date, Mr. Phan Van Mai said that many opinions suggested applying the regulation immediately in the 2025 tax period. However, some opinions agreed with the proposal to apply the regulation from the 2026 tax period to ensure convenience in tax management.

vtv.vn

Source: https://baolaocai.vn/chot-nang-muc-giam-tru-gia-canh-len-155-trieu-dongthang-post884706.html