The Ministry of Finance does not propose to tax personal income tax on savings interest.

According to the Ministry of Finance, in the latest proposal to develop the Law on Personal Income Tax (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.

Bank savings - an important capital mobilization channel for the economy

The Ministry of Justice has held a meeting to appraise the proposal to develop the Law on Personal Income Tax (replacement). After receiving written appraisal opinions from the Ministry of Justice, the Ministry of Finance will complete the proposal dossier to develop 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 the development of the Personal Income Tax Law (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, and personal income tax in particular, as determined in documents and resolutions of the Party and the State.

In particular, regarding interest on savings deposits, according to the Ministry of Finance, 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 the regulation on personal income tax exemption for interest on savings deposits as currently regulated.

Previously, public opinion was particularly interested in the information and comments on the draft submission on the development of the Personal Income Tax Law (replacement) of a locality proposing, researching and expanding the tax base, in the direction of only exempting personal income tax on small-scale savings interest and considering applying tax to high-income households. The reason this locality made the above proposal was to expand the tax base, ensuring budget revenue.

According to current regulations, individuals who receive interest from deposits at credit institutions are exempt from tax. Experts affirm that the regulation on exemption of personal income tax on income from interest from deposits at credit institutions is aimed at encouraging individuals who do not have the need to directly invest in production and business to deposit savings through banks - an important capital mobilization channel for the economy; this is also a welfare policy for those who are unable to work (retirees, disabled people, etc.) who have idle money deposited in banks to receive interest. If tax is paid on bank deposits, this capital mobilization channel will lose its advantage in attracting customers, causing a loss of resources for economic development.

Source: https://thoibaonganhang.vn/bo-tai-chinh-khong-de-xuat-danh-thue-thu-nhap-ca-nhan-voi-lai-tien-gui-tiet-kiem-160666.html