Today, November 25, the Ministry of Finance officially solicited public comments on the amendment of the shortcomings of the Personal Income Tax Law. The comprehensive amendment is intended to replace the current Personal Income Tax Law.
The Ministry of Finance has proposed a comprehensive revision of the Personal Income Tax Law. In the photo: a taxpayer is submitting a tax refund application at a tax office in Ho Chi Minh City - Photo: NGOC PHUONG
According to information from the Ministry of Finance, this amendment is a comprehensive amendment to the Law on Personal Income Tax.
Family deductions, tax bases... are outdated
In the draft proposal to develop the Law on Personal Income Tax (replacement), the Ministry of Finance said that the implementation of the Law on Personal Income Tax has demonstrated and promoted its role as an important tax in the current tax policy system of Vietnam.
However, the Ministry of Finance also acknowledged that the current Personal Income Tax Law has some limitations and shortcomings that need to be studied, reviewed and amended to suit reality, meet the requirements for personal income tax reform, and ensure transparency.
The proposed contents that need to be considered for amendment include provisions related to taxable income; tax-exempt income; tax bases and methods for determining the amount of tax payable on certain income items; personal income tax rates for income from salaries and wages; family deductions for taxpayers and dependents.
Talking to Tuoi Tre Online , tax experts and personal income taxpayers all suggested comprehensively amending the Personal Income Tax Law.
Because current regulations are outdated and out of date compared to the actual situation, causing taxpayers to be disadvantaged.
According to Mr. Nguyen Ngoc Tu - a tax expert, the current family deduction is outdated, such as the deduction of 4.4 million VND/month for dependents who are students. This level does not guarantee to cover the most essential expenses such as food, accommodation, transportation, and schooling for a child in the city.
Or the regulation that to be eligible for family deductions, dependents must have an average monthly income of no more than 1 million VND. This regulation has been in place for more than ten years while prices have fluctuated greatly.
On the other hand, the highest tax rate for personal income tax of up to 35% is too high, while the corporate income tax rate is 20%.
The replacement Personal Income Tax Law will be passed by the National Assembly in May 2026.
In a recent dispatch sent to ministries, sectors and localities asking for comments on the draft revised Law on Personal Income Tax, the Ministry of Finance said that the Government has reported to the National Assembly Standing Committee the results of research, review and proposal to develop a draft Law on Personal Income Tax (replacement).
At the same time, the Government has proposed to include the Personal Income Tax Law (replacement) in the 2025 Law and Ordinance Development Program, submit it to the National Assembly for comments at the 10th session (October 2025), and approve it at the 11th session (May 2026).
The Ministry of Finance requests that agencies, based on their functions and tasks, research and give opinions on the proposal to develop a draft Law on Personal Income Tax (replacement).
Suggested comments should be sent to the Ministry of Finance before December 20 for synthesis and reporting to the Government.
Need to comprehensively amend the Personal Income Tax LawSource: https://tuoitre.vn/bo-tai-chinh-de-xuat-sua-toan-dien-luat-thue-thu-nhap-ca-nhan-202411251150164.htm
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