The Ministry of Finance believes that the family deduction level needs to be carefully studied and calculated, ensuring that it is higher than the average GDP per capita, the regional minimum wage, and the average spending level per capita in a certain period.
Ministry of Finance just responded to the petition of voters of relevant localities family deduction
In the document sent to the National Assembly's Petition Committee, voters Six provinces (Binh Dinh, Ha Giang, Thai Nguyen, Tra Vinh, Tuyen Quang and Tay Ninh) proposed adjusting the family deduction level for taxpayers and dependents and adjusting the progressive tax schedule to ensure it is consistent with reality.
Responding to this petition, the Ministry of Finance said that the level family deduction For taxpayers and taxpayers' dependents, the tax rate is specific according to the general level of society, regardless of whether they have high or low incomes or different consumption needs. For individuals facing difficulties due to natural disasters, fires, accidents, or serious illnesses, the law has provisions for tax reduction in these cases.
"The specific family deduction level needs to be carefully studied and calculated, ensuring that it is higher than the average GDP per capita, regional minimum wage, and average spending per capita in a certain period," said the Ministry of Finance.
Citing the 2023 population living standards survey report of the General Statistics Office, Ministry of Finance According to the report, Vietnam's average monthly income per capita in 2023 is 4.96 million VND. The group of households with the highest income, including the richest 20% of the population, has an average income of 10.86 million VND/month/person.
The current deduction for taxpayers is 11 million VND/month, equivalent to more than 2.2 times the average income per capita (much higher than the common level applied by other countries of 0.5-1 times). The deduction for dependents is 4.4 million VND/person/month, which is also close to the current average income per capita.
Regarding the fluctuation of the consumer price index, the Ministry of Finance said that according to the General Statistics Office, the consumer price index increased by 3.23% in 2020; 1.84% in 2021; 3.15% in 2022 and 3.25% in 2023. Thus, since the most recent increase in the family deduction level (2020) until now, the consumer price index has only increased by 11.47%, so according to regulations, the family deduction level cannot be adjusted.
The Ministry of Finance is reviewing and evaluating the overall Personal Income Tax Law including content on family deductions and progressive tax rates. It is expected that the draft revised Law on Personal Income Tax will be registered for the program. build Law in 2025, submitted to the National Assembly for comments in October 2025 and passed in May 2026.
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