New deduction: less tax burden, but not enough to 'catch up' with expenses

Sharing with Tuoi Tre, Ms. MTC, an office worker living in Cau Ong Lanh ward (HCMC), said her income is about 20 million VND/month and she is raising a small child.

With the new family deduction, people with lower incomes will benefit more - Photo: TRI DUC

After deducting compulsory insurance, with the current deduction (VND11 million for herself and VND4.4 million for her children), the taxable income is about VND2.5 million, equivalent to about VND125,000/month in tax. "The amount doesn't look like much, but added up over the year, it's millions," she said.

According to Ms. C., if the family deduction under the new regulations increases to 15.5 million VND for the taxpayer and 6.2 million VND for each dependent, her total deduction will be 21.7 million VND per month. With her current income, she will no longer have to pay taxes. "That amount is not large, but it is enough to pay for electricity and water bills and have extra savings for her children," she shared.

According to her, the new policy reflects reality more accurately because the old deduction levels "are no longer suitable for the cost of living in the city".

She said: "A salary of 20 million seems high, but if you have to rent a house, raise children and pay for living expenses, there is almost nothing left. Now the rent, tuition, food, electricity and water bills have all increased, everything is escalating while the economy is difficult, every penny saved is a penny saved."

Raising two young children, Ms. Nguyen Thi Thu Thuy (An Phu Dong ward, Ho Chi Minh City) said that family expenses increased about 15 - 20% compared to last year because prices almost all increased such as electricity, water, garbage, essential food, school fees, milk for children...

The cost for each child is also 6 - 7 million VND/month; this is an amount that is almost impossible to reduce, and even has to increase when the child goes to a higher grade and eats more.

According to Ms. Thuy, the increase in family deductions is somewhat slow compared to the actual increase in people's living expenses in recent years, so it should be applied as soon as possible.

The family deduction for taxpayers increased to 15.5 million VND/month and for each dependent increased to 6.2 million VND/month is relatively suitable compared to people's current expenses, but in the near future people's expenses will increase, the inflation rate will also increase, so the adjustment of family deduction needs to be closer to reality and more timely.

"In reality, the current situation is that the basic cost of living increases almost every year, at least 8-10%," said Ms. Thuy.

Meanwhile, Mr. Le Van Vu (office worker, residing in Binh Quoi ward, Ho Chi Minh City) said that his current salary is about 16 - 17 million VND/month, but due to high expenses, there is almost nothing left.

According to Mr. Vu, the rent is 4 million VND/month, the average food cost is also 4 - 5 million VND/month and is clearly increasing every year, not to mention many other unnamed expenses.

In addition, every month I have to send money back to support my parents who are past working age and often sick in the countryside. Therefore, I don't have much left, but according to the new regulations, I still have to pay taxes.

"I think it is appropriate to increase the family deduction for each dependent to 7 - 7.5 million VND. In addition, we can consider additional cases of family deduction such as raising disabled people, cerebral palsy... with a higher level because the costs for these cases are very large, causing many impacts on the caregivers," said Mr. Vu.

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Source: https://tuoitre.vn/muc-giam-tru-moi-nhe-ganh-thue-nhung-chua-du-duoi-kip-chi-phi-20251018073712743.htm