Ministry of Finance proposes to continue exempting personal income tax on savings interest

In the proposal dossier for the development of the Personal Income Tax Law (replacement) sent to the ministries, branches, localities and people for comments, the Ministry of Finance proposed to continue to maintain the regulation on exemption of personal income tax on savings interest as currently regulated.

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 a need to directly invest in production and business to deposit money. save Through banks - is an important capital mobilization channel for the economy, this is also a welfare policy for those who are unable to work (retirees, disabled people...) who have idle money deposited in banks to receive interest.

In order to carry out the assigned tasks, 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 drafting of the Personal Income Tax Law on the Government's Electronic Information Portal and the Ministry of Finance's Electronic Information Portal. After that, the Ministry of Finance compiled and fully explained the participating opinions.

On January 22, 2025, the Ministry of Finance issued Official Dispatch No. 930/BTC-CST to the Ministry of Justice for comments.

On February 12, 2025, the Ministry of Justice held a meeting to review the proposal to develop a 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.

After receiving written comments from the Ministry of Justice, the Ministry of Finance will complete the dossier proposing the development of the 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.

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 the current personal income tax policy with 7 policy groups. Many contents, after being approved by competent authorities, will contribute to reducing tax obligations for taxpayers, ensuring compliance with the direction of reforming the tax policy system in general, personal income tax in particular, as determined in documents and Resolutions of the Party and the State, specifically: Adjusting the increase in family deductions 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 the deductible charitable and humanitarian contributions as well as other specific deductions when determining taxable income to institutionalize the policies of the Party and the State in promoting the development of areas such as health and education; Adjust tax rates as well as income gaps in tax brackets of the Progressive Tax Schedule; supplement regulations on tax exemption and reduction to implement the Party and State's policies and orientations for a number of priority areas, on attracting high-quality human resources for socio-economic development...

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 ministries, branches, localities and people for comments, the Ministry of Finance proposed to continue to maintain the regulation on exemption of personal income tax on savings interest as currently regulated.

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