Collected nearly 190,000 billion VND from personal income tax

Personal income tax revenue in 2024 is estimated at VND189,000 billion, exceeding the annual estimate by about VND30,000 billion, according to the General Department of Taxation.

This year, the financial sector expects personal income tax revenue to be around VND160,000 billion. However, according to information from the General Department of Taxation ( Ministry of Finance ), the estimated personal income tax revenue for the whole year is VND189,000 billion, an increase of 20% over the same period last year (VND157,000 billion).

Thus, compared to the annual plan, personal income tax revenue reached 118.7% of the estimate, corresponding to exceeding 30,000 billion VND. This result was explained by the tax industry due to many revenue management measures such as guiding taxpayers, preventing revenue loss in business, and real estate transfer. The tax authority also has many solutions to exploit additional sources from digital business, e-commerce, affiliate marketing, online business individuals, livestream sales...

Last year, business households and individuals paid VND25,900 billion in taxes, equal to 120% of the revenue in 2023 (VND21,639 billion). Of which, revenue from individual production and business was VND7,987 billion, up 15%. Revenue from property leasing increased by 17%, about VND3,235 billion.

Personal income tax including taxes from wage earners (mainly) and business individuals. This is one of the three main pillars of the budget, along with corporate income tax and value added tax (VAT). By the end of 2024, this tax revenue will account for about 9.5% of total budget revenue, significantly higher than the 5.33% level in 2011.

However, the level family deduction The method of calculating personal income tax (VND 11 million and dependent deduction of VND 4.4 million) maintained since July 2020 and the progressive tax schedule are considered outdated and inappropriate when spending and life are increasingly expensive. The Ministry of Finance acknowledges that many provisions of the Personal Income Tax Law need to be amended in accordance with socio-economic development, reducing the burden on taxpayers.

Therefore, in the proposal to amend this law in November 2024, the Ministry proposed to adjust the progressive tax schedule in a way that reduces the number of levels and widens the income gap. They also said that the regulations on family deductions need to be reviewed and amended to suit the new conditions.

Currently, the country has nearly 725,000 organizations and individuals doing business on e-commerce platforms, with a total transaction value of more than VND75,000 billion, according to data from 439 platforms provided to tax authorities. Tax revenue from this sector has continuously increased over the past three years. Specifically, last year's revenue was about VND116,000 billion, a significant increase compared to the VND83,000 - 97,000 billion recorded in the previous two years.

In addition, the tax authorities have also tightened management of revenue from foreign suppliers. Currently, there are 123 foreign suppliers registering for tax through the electronic portal. Accumulated from March 2022 - the time the electronic portal for foreign suppliers was put into operation, foreign enterprises have paid about 20,000 billion VND. Of which, the Meta group (Facebook), Google, Microsoft, TikTok, Netflix, Apple... hold about 90% of the market share of cross-border e-commerce service revenue in Vietnam.

2024 is also the year the tax industry records record Regarding state budget revenue, it exceeded 1.7 million billion VND. With this progress, including the 2025 estimate, the budget revenue for the 5-year period could reach over 9 million billion VND, exceeding 0.7 million billion compared to the target assigned by the National Assembly .

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