return icon Vietnamnet.vn

Personal income tax rates out of date, need amending

The Ministry of Finance (MOF) says that personal income tax (PIT) rates have become out of date after six years of application and need amendment.

According to Ta Thi Phuong Lan, deputy director of the PIT Tax Management, under the PIT Law, which took effect on July 1, 2013, when the CPI increases by more than 20 percent, the government will report to the National Assembly to adjust tax deductions for family circumstances.

 

{keywords}



She said after six years of application, many regulations are no longer suitable to the new conditions. The CPI has increased by more than 20 percent after six years and living expenses are higher.

The Tax Policy Department is working on necessary amendments before MOF reports to the government which will submit the plan to the National Assembly.

Under current regulations, those who have to pay PIT are high income earners, understood as people with the monthly income of VND9 million or more, while the deduction for family circumstances is VND3.6 million per month per head.

The Ministry of Finance (MOF) says that personal income tax rates have become out of date after six years of application and need amendment.

Bui Sinh Quyen, a lawyer for the Hanoi Bar Association, has proposed amending both the taxation threshold and the deduction for family circumstances for every independent person.

He said that it would be better not to set the same taxation threshold for many different zones. It would be better to refer to minimum wages applied for Zones 1, 2, 3 and 4 to set the thresholds.


“The taxation threshold for taxpayers from 2019 should be four times the regional minimum wage, while the deduction should be 40 percent of the taxation threshold for every independent person."

The current tax rates, applied since 2013, observe the principle: the deduction for tax payer of VND9 million was 3.8 times higher than the minimum wage, and the deduction of VND3.6 million was equal to 40 percent of the deduction for taxpayer.

If following the principle, the figures should be VND16.72 million a month and VND6.7 million, respectively.

According to Nguyen Thi Cuc, chair of the Vietnam Tax Consultancy Association, the current tax rates, with the lowest rate of 5 percent and the highest rate of 35 percent, are relatively high, if noting that the corporate income tax has reduced from 32 percent to 28 percent, 25 percent and to 20 percent now.

While the corporate income tax has been cut many times, the PIT rate remains up to 35 percent since its application in 2013.

Ngo Tri Long, a respected economist, and Truong Thanh Duc from Basico Law Firm, attributed the tardiness in amending laws to red tape.

Kim Chi 

 

Vietnam’s GDP per capita is $3,000 per annum

Vietnam’s GDP per capita is $3,000 per annum

Vietnamese income has improved significantly, but it has not reached the $3,000per capita threshold as calculated by General Statistics Office, economists say.

Different scenarios for Vietnam's CPI in 2019 outlined

Different scenarios for Vietnam's CPI in 2019 outlined

Experts have outlined a number of different consumer price index (CPI) scenarios for this year, which are all below 4 per cent as requested by the National Assembly.  

MORE NEWS

Vietnam contributes to International Law Commission

Vietnamese Ambassador Nguyen Hong Thao has pledged to make more contributions to the progress and development of international law, for peace, friendship, cooperation and sustainable development worldwide.

Pencak silat fighter enjoys golden year

Pencak silat fighter Quang Thi Thu Nghia has had amazing year of competition when she has won titles from all competitions that she took part in.

Pop singer to compete at MTV Europe Music Awards

Pop singer Pham Dinh Thai Ngan from HCM City will represent Vietnam at the MTV Europe Music Awards (MTV EMA) 2022.

PM hosts national committee on digital transformation’s third session

Prime Minister Pham Minh Chinh chaired the third meeting of the National Committee on Digital Transformation on August 8 to assess digital transformation pace during the first half of 2022 and devise tasks for the time ahead.

Liem to face off against chess king Carlsen at FTX Crypto Cup

Vietnam’s leading chess player Le Quang Liem has revealed that he will take on Norwegian chess king Magnus Carlsen at the FTX Crypto Cup which is scheduled to take place in Miami, USA, from August 15 to August 21.

Vietnam ranks third overall at ASEAN Para Games 2022

Vietnamese athletes bagged seven more gold medals on August 5, the last competition day of the ASEAN Para Games 2022, retaining their third place in the medal tally.

Corporate bond market struggling with challenges

The size of the corporate bond market is estimated at some VND1,374 trillion, equivalent to 15% of GDP. The Government aims to raise this figure to 20% by 2025.

President requires greater efforts to promote value of Ngoc Linh ginseng

Ngoc Linh ginseng deserves the "National treasure" title, and it is necessary to strongly promote the role of this treasure in improving people's livelihoods, President Nguyen Xuan Phuc said .

EVFTA outpaces CPTPP in preference utilisation rate

The utilisation rate of tax incentives set out in the EU-Vietnam Free Trade Agreement (EVFTA) during Q1 soared by over 32%, representing a four-fold rise compared to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Refusal to issue visas to new VN passport causes problems for travel firms

The rejection of Vietnam’s new passport by some EU member countries is affecting HCM City tourism companies since their customers are unable to travel to those countries.

Vietnam set to scrap COVID quarantine for imported processed seafood

The Ministry of Agriculture and Rural Development has removed COVID-related quarantine requirements for frozen processed seafood products imported for the purpose of reprocessing for export.

HCM City seeks to boost technology transfer from universities

Huynh Kim Tuoc, managing director of Sai Gon Innovation Hub's (SiHub) Start-up Support Centre under the HCM City Department of Science and Technology, affirmed Vietnam holds tremendous potential for technology development

Vigilance urged against COVID-19 amid emergence of new epidemics

Prime Minister Pham Minh Chinh asked ministries, agencies and localities to maintain vigilance against COVID-19 while addressing a meeting in Hanoi on Saturday.

Vietnamese, British agencies coordinate in identifying fire victims

The Consular Department under the Ministry of Foreign Affairs and the Vietnamese Embassy in the UK will continue to coordinate with Vietnamese and British agencies to identify victims in a blaze in Greater Manchester on May 7.

Photo contest highlighting beauty of Vietnamese islands kicks off

Professional and amateur photographers across Vietnam are encouraged to compete in a photo contest highlighting the beauty of Vietnamese Hoang Sa and Truong Sa islands.
back_to_top