Vietnam Finance Ministry plans relief for taxpayers

A higher disposable income as a result from the adjustment would boost household spending and economic growth, said the Ministry of Finance.

Vietnam’s Ministry of Finance (MoF) is proposing increasing the family circumstance-based deduction for each dependent of taxpayers from VND3.6 million (US$155.42) per month to VND4.4 million (US$189.96) per month.

 Illustrative photo. 

Additionally, the taxable personal income would be raised from VND9 million (US$388.55) per month to VND11 million (US$474.89) per month.

Under the law, a reduction based on family circumstances means a sum of money deductible from pre-tax income from businesses, salary or wage of resident taxpayers.

Once approved by the National Assembly in the upcoming session, the adjustment would take effect right in this fiscal year.

The MoF said such the move aims to better reflect Vietnam’s current socio-economic conditions and price fluctuations.

The Law on Personal Income Tax, which took effect in July 2013, stipulates that in case the consumer price index (CPI) rises more than 20% compared to the effective time of the law or the latest adjustment to the reduction based on family circumstances, the government would submit to the Standing Committee of the National Assembly for adjustment of the reduction based on family circumstances.

 

In fact, from July 2013 to the end of 2019, the CPI rose 23.2%. Under current legislation, an individual with income from VND9 million to VND15 million (US$388.55 – 647.58) would have to pay a tax amount of VND120,000 (US$5.18) for one dependent. However, with the new adjustment, the person would no longer have to pay tax.

With this adjustment, an individual with income less than VND20 million (US$863.44) and one dependent would have to pay tax of VND230,000 (US$9.93), 48% lower than the amount stipulated by the current law, while those with higher income would be subjected to a 7% reduction in tax amount.

In 2019, over 6.88 million people paid personal income tax of a combined VND79.2 trillion (US$3.41 billion). “The figure would be reduced to VND68.92 trillion (US$2.97 billion), down 13% year-on-year,” the ministry estimated.

The MoF expected a higher disposable income as a result of the adjustment would encourage household consumption and spur economic growth. Hanoitimes

Ngoc Mai

Tax reduction could help businesses recover from Covid-19

Tax reduction could help businesses recover from Covid-19

The tourism and service industry in Danang is expected to suffer losses of  US$30.4 million due to strong decreases among key tourist markets in the two months since the coronavirus (Covid-19) outbreak in Wuhan, China.

HCM City tourism industry seeks tax breaks to cushion coronavirus blow

HCM City tourism industry seeks tax breaks to cushion coronavirus blow

The HCM City Department of Tourism yesterday (Feb 20) called on the Vietnam National Administration of Tourism to seek preferential policies from the Government to soften the impact of the new coronavirus outbreak.

 
 

Other News

.
Curbed inflation eases concerns
Curbed inflation eases concerns
BUSINESSicon  13/11/2020 

The big rise in public investment disbursement will not cause high inflation this year due to a decline in public and business demand and oil price, as well as government efforts to stabilise prices.

Focus on efficiency for new incentives
Focus on efficiency for new incentives
BUSINESSicon  13/11/2020 

A list of sectors that could benefit from special tax incentives in Vietnam would be utilised to grow enthusiasm for overseas investors and, as a result, help to contribute towards luring more high-quality foreign direct investment.

Pressure on the Finance Minister
Pressure on the Finance Minister
FEATUREicon  13/11/2020 

As the holder of the keys of the national treasury, Finance Minister Dinh Tien Dung is facing great pressure.

Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
Demographics, rising income, geopolitical shifts to drive ASEAN’s growth
BUSINESSicon  13/11/2020 

10 ASEAN member states are on the cusp of a tremendous leap forward in socio-economic progress and their growth will be propelled by four mega-forces, including favourable demographics, rising income levels, geopolitical shifts and digital tailwinds.

Local firms told to prepare for RCEP export opportunities
Local firms told to prepare for RCEP export opportunities
BUSINESSicon  13/11/2020 

Vietnamese businesses should prepare to export their products to other ASEAN countries ahead of the possible signing of the Regional Comprehensive Economic Partnership (RCEP) this week. 

Pork prices drop after country flooded with imports
Pork prices drop after country flooded with imports
BUSINESSicon  14/11/2020 

Vietnam spent VND5 trillion ($214.78 million) to import pork in the first nine months of the year, leading to a drop in prices.

Hanoi authorities to inspect farmstay projects, land violations
Hanoi authorities to inspect farmstay projects, land violations
BUSINESSicon  13/11/2020 

The Hanoi People’s Committee has assigned the Department of Natural Resources and the Environment to set up a taskforce to inspect farmstay projects and deal with land law violations.

Daily visits to local e-commerce sites top 3.5 million: VECOM
Daily visits to local e-commerce sites top 3.5 million: VECOM
BUSINESSicon  12/11/2020 

Online shopping traffic in Vietnam so far this year rocketed over 150 percent against a year earlier, with daily visits to e-commerce sites growing to 3.5 million, 

RCEP - A new boost for regional enterprises
RCEP - A new boost for regional enterprises
BUSINESSicon  12/11/2020 

The Regional Comprehensive Economic Partnership (RCEP) agreement, expected to be signed on November 15 within the framework of the 37th ASEAN Summit in Hanoi, 

Enterprises need to be pro-active during the pandemic
Enterprises need to be pro-active during the pandemic
BUSINESSicon  13/11/2020 

Nguyen Bich Lam, former director general of the General Statistics of Vietnam, talks on what Vietnamese enterprises need to do to maintain their business production during the COVID-19 pandemic.

Black credit leading people to dead end, with no escape from debt
Black credit leading people to dead end, with no escape from debt
BUSINESSicon  12/11/2020 

Covid-19 has caused many people to lose jobs and has paved the way for black credit to emerge.

Pandemic causes bad debts to surge
Pandemic causes bad debts to surge
BUSINESSicon  12/11/2020 

Non-performing loans (NPLs) among commercial banks increased sharply in the first three quarters of this year due to the adverse impacts of the COVID-19 pandemic.

MoIT carries out solutions to boost domestic market growth
MoIT carries out solutions to boost domestic market growth
BUSINESSicon  11/11/2020 

The Ministry of Industry and Trade (MoIT) will promote domestic market consumption to contribute partly to enhancing socio-economic development.

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 13
VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 13
BUSINESSicon  13/11/2020 

Hope for Vietnam's billion-dollar export industry at year’s end

Consumers in Asia-Pacific to benefit most from industry 4.0
Consumers in Asia-Pacific to benefit most from industry 4.0
BUSINESSicon  11/11/2020 

Shifting businesses and enterprises into an intelligent and connected virtual space is no longer an option but a necessity to survive, primarily due to the added pressure brought about by the pandemic, a study by Deloitte said.

Vietnam should have law on supporting industry: VCCI chairman
Vietnam should have law on supporting industry: VCCI chairman
BUSINESSicon  11/11/2020 

Vietnam needs to have a law on the supporting industry to aid its development, according to the chairman of the Vietnam Chamber of Commerce and Industry (VCCI).

Vietnam targets private-sector development
Vietnam targets private-sector development
BUSINESSicon  14/11/2020 

Vietnam needs to develop a strategy to promote the development of the private sector over the next decade to maintain growth, speakers said at a conference on socio-economic development from 2021 to 2030 held in HCM City last week.

Vietnam boasts huge opportunities to attract foreign investment: WB official
Vietnam boasts huge opportunities to attract foreign investment: WB official
BUSINESSicon  11/11/2020 

Vietnam has tremendous opportunities to attract foreign investment as global companies are seeking for a destination promising continuity, World Bank Country Director for Vietnam Carolyn Turk said.

Marketplaces get ready for year-end sale season
Marketplaces get ready for year-end sale season
BUSINESSicon  11/11/2020 

Black Friday, Singles Day and Christmas are the time for e-commerce platforms to make big money.

Shocking smuggling case: 51kg of gold carried across border to Vietnam
Shocking smuggling case: 51kg of gold carried across border to Vietnam
BUSINESSicon  11/11/2020 

As gold prices in Vietnam are higher than international prices, smugglers are trying every possible way to slip gold into Vietnam to seek profits.

 
 
 
Leave your comment on an article

OR QUICK LOGIN