The Ministry of Finance collects opinions on amending the Law on Personal Income Tax

The Ministry of Finance is collecting opinions on amending the Law on Personal Income Tax and 5 other tax laws including environmental protection tax, import and export tax…

Following the direction of the Government, the Ministry of Finance develops an outline of a research report, reviews, evaluates and proposes amendments to 6 tax laws, including the Tax Law: Personal income; Environmental Protection; Export – import tax; Use of agricultural land; Non-Agricultural Land Use and Resource Tax Law. Agencies with comments should send to the Ministry of Finance before April 15.

For the Law on Personal Income Tax, the Ministry of Finance requires an assessment of each group of issues including taxpayers, taxable income, tax-exempt income, tax bases and determination of payable tax amounts, tax rates, family deductions…

How to calculate personal income tax is a controversial issue for a long time. The family deduction has been adjusted from VND 9 million to VND 11 million from July 2020, but according to many experts, the family deduction of VND 11 million is “outdated and insensitive”, especially in the context of Recently, the economy has grown much more than this adjusted level.

Besides, the taxable threshold of VND 100 million for business individuals is also considered too low. This taxable income threshold according to experts is not even enough to cover their living needs, but asking them to pay taxes is not appropriate.

The essence of tax policy is to regulate from people with high incomes to minimize income disparity, the gap between rich and poor, and to consolidate budget revenues to fulfill public obligations. But the current personal income tax calculation method does not meet this, experts estimate.

Quynh Trang


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