ANTD.VN - The Ministry of Finance continues to propose not to tax savings interest, in order to encourage people who do not need to invest in production to deposit money in banks.
The Ministry of Finance said that on November 22, 2024, the Ministry issued an official dispatch to widely solicit opinions from relevant organizations and individuals on the drafting of the Personal Income Tax (PIT) 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 the Law on Personal Income Tax (replacement). After receiving written comments from the Ministry of Justice, the Ministry of Finance will complete the dossier proposing 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.
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Ministry of Finance proposes to continue not to tax savings interest |
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 current personal income tax policies with 07 policy groups.
Many contents, once 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.
Specifically: adjusting the family deduction level for taxpayers to match 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 State in promoting the development of areas such as healthcare and education;
Adjust tax rates and income gaps within tax brackets of the Progressive Tax Schedule;
Supplementing regulations on tax exemption and reduction to implement the Party and State's policies and orientations on 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 to develop the draft Law on Personal Income Tax (replacement), the Ministry of Finance proposed to continue to maintain the regulation on exemption of personal income tax on savings interest as currently regulated.
However, in the contribution to this draft law, the proposal of the People's Committee of Can Tho City is noteworthy, in which the locality proposed that the drafting unit study and expand 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 the People's Committee of Can Tho City made the above proposal is to expand the tax base and ensure budget revenue. Because according to current regulations, individuals who receive interest on deposits from credit institutions are exempt from tax.
The above opinion immediately attracted public attention. However, the Ministry of Finance said that the current 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 - an important capital mobilization channel for the economy.
In addition, according to the Ministry of Finance, 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 tasks assigned by the Prime Minister in Decision No. 2114/QD-TTg dated December 16, 2021 promulgating the Plan to implement Conclusion No. 19-KL/TW of the Politburo and the Project on Orientation of the Law-making Program for the 15th National Assembly, the Ministry of Finance has conducted a review and overall assessment of the Personal Income Tax Law and researched and prepared a dossier to propose the development of a draft Law on Personal Income Tax (PIT) (replacement) to report to the Government, the National Assembly Standing Committee, and the National Assembly for consideration and amendment according to the National Assembly's Law-making Program, ensuring compliance with Vietnam's socio-economic conditions as well as international practices.
Source: https://www.anninhthudo.vn/bo-tai-chinh-noi-gi-ve-de-xuat-danh-thue-doi-voi-tien-lai-tiet-kiem-post604089.antd
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