Personal income tax family deduction may be adjusted next October

ANTD.VN - A representative of the Ministry of Finance said that the adjustment of the personal income tax family deduction level may be included in the meeting of the National Assembly Standing Committee in October 2025.

Recently, many opinions have said that the current personal income tax family deduction is outdated and needs to be adjusted soon to reduce the tax burden for salaried workers.

Regarding this issue, Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance) said that the family deduction level may be adjusted next October.

A representative of the Ministry of Finance said that according to current regulations, in case the consumer price index (CPI) fluctuates by more than 20% compared to the most recent adjustment of family deductions, the Government will report to the National Assembly Standing Committee to adjust the family deduction level accordingly.

"We have been closely monitoring the CPI since the National Assembly Standing Committee last adjusted the family deduction (2020) until now. Based on CPI developments, the updated CPI for 2024 is 3.63%, up to now the CPI has not exceeded the 20% threshold," said Mr. Tuan.

Modern CPI fluctuations have not reached the threshold for adjusting the personal income tax family deduction level

However, Mr. Tuan said that the Ministry of Finance forecasts that the CPI will fluctuate in 2025 and may have to adjust this deduction level. Therefore, this agency will study and report to the Government to submit to the National Assembly Standing Committee a Resolution on adjusting the family deduction level to suit reality, without waiting for a law amendment.

"The October meeting of the National Assembly Standing Committee may have content related to the resolution on adjusting family deductions according to CPI fluctuations," Mr. Tuan informed.

According to the representative of the Ministry of Finance, 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 expenditure in a certain period.

In parallel with adjusting the family deduction level, the Ministry of Finance is also assessing the Law on Personal Income Tax (including the content on family deduction level...) to report to the Government, the National Assembly Standing Committee, and the National Assembly for consideration of amendments and supplements, ensuring compliance with Vietnam's socio-economic conditions and international practices.

“The Ministry of Finance has compiled the opinions and suggestions of ministries, branches and localities on this draft law. The Ministry will send the draft law to the Ministry of Justice for appraisal according to the prescribed procedures. This draft law will be registered in the 2025 law and ordinance making program and is expected to be submitted to the National Assembly for comments in October 2025 and approved in May 2026,” informed Mr. Truong Ba Tuan.

Previously, in the draft proposal to develop the latest Personal Income Tax Law (replacement) announced by the Ministry of Finance for comments, the Ministry of Finance proposed to consider studying the option of assigning the Government to regulate the family deduction level to ensure flexibility and proactive adjustment to suit the reality and requirements of the country's socio-economic development in each period. Currently, this adjustment is decided by the National Assembly Standing Committee.

The Ministry also proposed to supplement the scope of determining deductible charitable and humanitarian contributions (social funds, charity funds); study and supplement other specific deductions (medical and educational expenses); and assign the Government to specify details and provide implementation instructions to suit emerging practices.

The Ministry of Finance also proposed to study and adjust the Progressive Tax Schedule applicable to resident individuals with income from salaries and wages in a downward direction compared to the current 7 levels, while at the same time, widening the income gap in tax levels.

Source: https://www.anninhthudo.vn/co-the-dieu-chinh-giam-tru-gia-canh-thue-thu-nhap-ca-nhan-vao-thang-10-toi-post600653.antd