Ministry of Finance proposes to continue tax exemption on savings interest

According to the Ministry of Finance, the regulation on exemption of personal income tax on income from interest on deposits aims to encourage individuals who do not need to directly invest in production and business to deposit savings through banks.

The Ministry of Finance has proposed to continue to maintain the regulation on personal income tax exemption for savings interest as currently regulated. (Photo: Vietnam+)

Information from the Ministry of Finance said that the proposal to develop the Personal Income Tax Law project is expected to report to the Government to propose continuing to maintain the current regulations on tax exemption for savings interest.

Specifically, on November 22, 2024, the Ministry of Finance issued Official Dispatch No. 12738/BTC-CST to widely solicit opinions from relevant organizations and individuals on the development of the draft Law on Personal Income Tax (PIT) on the Government's Electronic Information Portal and the Ministry of Finance's Electronic Information Portal.

After that, the Ministry of Finance has compiled and fully explained the comments. On January 22, the Ministry of Finance sent Official Letter No. 930/BTC-CST to the Ministry of Justice for comments. On that basis, on February 12, the Ministry of Justice held a meeting to review the proposal to develop the Law on Personal Income Tax (replacement).

The Ministry of Finance said that after receiving written comments from the Ministry of Justice, this unit will complete the dossier proposing to develop a draft Law on Personal Income Tax (replacement) to submit to the Government for consideration and decision before reporting to the National Assembly Standing Committee and the National Assembly.

Up to now, the dossier proposing to develop the draft Law on Personal Income Tax (replacement) is expected to be reported to the Government to report to the National Assembly to propose overall amendments to regulations related to 7 policy groups with many contents.

Specifically, adjusting the family deduction level for taxpayers in accordance with changes in living standards, price indexes and macroeconomic indicators in the recent period and forecasts for the coming period; Amending and supplementing deductible charitable and humanitarian contributions as well as other specific deductions when determining taxable income to institutionalize the policies of the Party and State in promoting the development of areas such as health and education; Adjusting tax rates as well as income gaps in tax brackets of the Progressive Tax Schedule; supplementing regulations on tax exemptions and reductions to implement the policies and orientations of the Party and State for a number of priority areas, on attracting high-quality human resources for socio-economic development...

In Article 19 of the draft Law on Personal Income Tax, many opinions proposed to increase the family deduction level for taxpayers to match the basic salary of 2.34 million VND/month, an increase of 57.05% compared to when the Law was promulgated.

Regarding interest on savings deposits, the current Personal Income Tax Law stipulates tax exemption for income from interest on deposits at credit institutions, interest from life insurance contracts, interest on government bonds, pensions, etc. In the proposal dossier for the development of the Personal Income Tax Law (replacement) sent to solicit opinions from ministries, branches, localities and people, the Ministry of Finance proposed to continue to maintain this provision.

According to the Ministry of Finance, the regulation on exemption of personal income tax on income from interest on deposits at credit institutions aims to encourage individuals who do not have the need to directly invest in production and business to deposit savings through banks. This is an important capital mobilization channel for the economy, and it is also a welfare policy for those who are unable to work (retirees, disabled people, etc.) who have idle money to deposit in banks to receive interest.

Source: VNA

Source: https://baophutho.vn/bo-tai-chinh-de-xuat-tiep-tuc-mien-thue-doi-voi-lai-tien-gui-tiet-kiem-228305.htm