According to the Ministry of Finance, personal income tax (PIT) revenue in the first 9 months of 2023 reached VND 121,200 billion, VND 7,200 billion lower than the same period last year, equivalent to a decrease of 6%. This figure also only reached 78% of the estimated budget revenue in 2023 (VND 154,652 billion).
In the past 10 years, this is the first year that personal income tax revenue in 3 quarters of the year has negative growth.
The current Personal Income Tax Law was passed by the 12th National Assembly on November 20, 2007, replacing the Ordinance on Income Tax for High-Income Earners and officially took effect from January 1, 2009. Since then, revenue from personal income tax has contributed greatly to the state budget, with each year being higher than the previous year.
Personal income tax revenue from salaries and wages has always increased every year. Personal income tax revenue increased from nearly VND 38,500 billion (2011) to over VND 166,000 billion in 2022. Although personal income tax revenue for the first 9 months of 2023 decreased compared to 2022, the revenue for the first 9 months was still nearly equal to the revenue for the whole year of 2021.
2019 marked the first time personal income tax revenue exceeded VND100,000 billion, reaching VND109,400 billion.
In 2020 and 2021, despite being affected by the Covid-19 pandemic, personal income tax revenue still increased compared to previous years, reaching more than VND 115,000 billion.
According to the Ministry of Finance, with the current deduction for the taxpayer himself of 11 million VND/month and for each dependent of 4.4 million VND/month, people with income from salary and wages of up to 17 million VND/month (if there is 1 dependent) or up to 22 million VND/month (if there are 2 dependents) after deducting social insurance, health insurance, unemployment insurance... do not have to pay personal income tax.
The Ministry of Finance believes that: Personal income tax regulates personal income. The implementation of personal income tax policy plays a very important role in implementing redistribution policies according to each stage of development of socio-economic life. Along with other sources of revenue, revenue from personal income tax has created a state budget fund to meet many spending needs for development investment, national defense and security, ensuring social security, and poverty reduction.
Recently, the need to amend the Law on Personal Income Tax has been urgent. On March 16, 2023, the Government issued Report No. 71/BC-CP to the National Assembly Standing Committee on the results of implementing Plan No. 81/KHUBTVQH15 dated November 5, 2021 of the National Assembly Standing Committee, including the content of the Report on studying and reviewing the Law on Personal Income Tax and the roadmap for developing the Law on Personal Income Tax (amended) in accordance with the provisions of the Law on Promulgation of Legal Documents.
It is expected that the amendment to the personal income tax law will be submitted to the National Assembly for inclusion in the Law-making Program in May 2025, submitted to the National Assembly for the first comments in October 2025, and submitted to the National Assembly for approval in May 2026.
Speaking to the press on the sidelines of the National Assembly earlier this month, Finance Minister Ho Duc Phoc said that the family deduction compared to the average salary is high, but compared to the urban living standards of the people, the current tax calculation and family deduction are low.
In particular, before sharing about the income of 12 million VND/month in urban areas, Mr. Phoc assessed that this is not enough to live on.
Times of raising the family deduction level
According to the Law on Personal Income Tax, when the consumer price index (CPI) fluctuates by more than 20% compared to the time the Law takes effect or the time of the most recent adjustment of the family deduction level, the family deduction level will be considered for adjustment in accordance with price fluctuations applicable to the next tax period.
The Personal Income Tax Law (effective from January 1, 2009) stipulates that the deduction for taxpayers is 4 million VND/month (48 million VND/year); the deduction for each dependent is 1.6 million VND/month.
The Law amending and supplementing a number of articles of the Personal Income Tax Law No. 26/2012/QH13 (effective from July 1, 2013) stipulates that the deduction for taxpayers is 9 million VND/month (108 million VND/year); the deduction for each dependent is 3.6 million VND/month.
On June 2, 2020, the National Assembly Standing Committee issued Resolution No. 954/2020/UBTVQH14 on adjusting the family deduction level of personal income tax (applicable from the 2020 tax period). Accordingly, the deduction level for taxpayers is increased to VND 11 million/month (VND 132 million/year); the deduction level for each dependent is VND 4.4 million/month.
Source
![Charming Vietnam [ Cat Tien National Park ]](https://vstatic.vietnam.vn/vietnam/resource/IMAGE/2025/2/12/c05c34322e4f4cac874e7f971dfaddca)
Comment (0)