A series of provinces including Ha Tinh, Bac Giang, Son La, Quang Binh… and ministries such as National Defense, Information and Communications, Health… also proposed to increase the family deduction level. The highest proposed level is 18 million VND/month.
Ministries and localities have simultaneously proposed to increase the family deduction level for taxpayers and dependents (photo of people and businesses settling taxes at the Ho Chi Minh City Tax Department) - Photo: TTD
Family deduction level must increase according to basic salary level
Comments on the proposal to build the draft Law on Personal Income Tax (replacement) recently sent by the Ministry of Finance to the Government, family deduction is the content that ministries, localities, and taxpayers focus on proposing amendments.
Specifically, Ha Tinh province proposed to increase the family deduction for taxpayers with income from wages and salaries to 18 million VND/month; for dependents it is 8 million VND/month.
The reason is that, according to the Personal Income Tax Law, the deduction for taxpayers is 9 million VND/month, and for dependents is 3.6 million VND/month, applied from July 1, 2013. At that time, the basic salary was 1,150,000 VND. Up to now, the basic salary has increased 2.03 times, to 2,340,000 VND. Therefore, it is necessary to increase the family deduction in accordance with the increase rate of the basic salary.
The Ministry of National Defense proposed raising the family deduction to 17.3 million VND/month for taxpayers, and the deduction for dependents from 4.4 million VND/month to 6.9 million VND.
Because in 2020 - the time the current deduction was issued, the basic salary was 1.49 million VND/month. Up to now, the basic salary is 2.34 million VND, an increase of more than 57%.
Son La province proposed to increase the deduction for taxpayers to 16 million VND/month, and for dependents to 5 million VND/month. Ninh Thuan province proposed to increase the deduction for taxpayers to 14 million VND/month, and for dependents to 6 million VND.
The deduction for single parents should be higher than the general level.
Along with the proposal to increase the family deduction level, many localities and ministries also proposed adding deductions to support costs for education, healthcare, housing, voluntary social insurance and investments for human development.
At the same time, additional deductions are provided to support special cases such as employees who are single parents or have relatives with serious illnesses. Accordingly, individual taxpayers in this category should be subject to higher deductions than the general level.
On the other hand, Bac Giang province proposed to increase the current family deduction level and apply it appropriately to the actual living conditions of each region and area in the country instead of applying a single level as it is now. Because the minimum wage is divided into 4 regions. In addition, the price of goods is increasing, leading to an increase in daily living expenses, so the current level is no longer suitable.
Responding to the above proposals, the Ministry of Finance said that the draft Law on Personal Income Tax has raised this issue. That is, studying to increase the family deduction level for taxpayers and dependents, to ensure consistency with the developments of the consumer price index and macroeconomic indicators in recent years, contributing to reducing the burden on taxpayers.
On the other hand, the Ministry of Finance also proposed adding other specific deductions such as medical and educational expenses.
In addition, this is only the stage of drafting the outline, so it only focuses on clarifying the problems and shortcomings that need to be revised and supplemented. The detailed content and specific assessment will be studied and proposed by the Ministry of Finance when the law is included in the law and ordinance-making program of the National Assembly.
Source: https://tuoitre.vn/de-nghi-nang-muc-giam-tru-gia-canh-cao-nhat-la-18-trieu-thang-20250208174043381.htm
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