return icon

PIT law out of date, burdening taxpayers

The prices of essential goods and services have been increasing rapidly, while the personal income tax (PIT) has remained unchanged over the six years.

Le Kim in district 7, HCMC, said her elder daughter, a Foreign Trade University student, had to pay tuition of VND18 million for the 2016-2017 academic year. Meanwhile, the tuition has been raised to VND24 million.



Her son, a student of the Le Hong Phong High School, has to pay tuition of VND1.5 million a month.

She has to pay for English classes and extra training courses for the two children.

“I have to spend no less than VND15 million a month to fund their studies. The amount of money doesn’t include spending on food, clothes, healthcare and other needs. Meanwhile, under the current law, the family circumstance deduction is VND3.6 million for one independent person,” she said.

Analysts pointed out that the prices of essential goods and services have increased sharply, while the tax policy remains unchanged. This means that people have to pay higher tax.

Analysts pointed out that the prices of essential goods and services have increased sharply, while the tax policy remains unchanged. This means that people have to pay higher tax.

 Over six years, a liter of petrol has increased by 12-15 percent in price, and electricity by 23.5 percent.

Under the current laws, if the CPI increases by more than 20 percent than that at the time PIT Law took effect, the government can propose to the National Assembly’s Steering Committee to adjust the family circumstance deduction.

The CPI has increased by 24 percent over the last six years, while the increase is expected to hit 26 percent this year end, but the outdated tax rates have stayed unchanged.

“The PIT Law has become outdated compared with economic development. It is the right time to amend so that taxpayers don’t feel unfairly treated,” said Le Dat Chi from the HCMC Economics University.

Chi said it is necessary not only to adjust the family circumstance deduction levels for tax payers and independent people, but also to reconsider the gaps among tax rates.

It is also necessary to reconsider what ‘high income’ means so as to properly define tax rates.

The 10 percent tax rate on income of VND5-10 million a month, for example, is high. It is also unreasonable to tax 20 percent on the income between VND18-32 million.

Meanwhile, an analyst pointed out the discriminatory treatment to taxpayers. He said the people who earn big money from online trading only have to pay small fixed tax, while employees have to pay too much.

Lawyer Tran Xoa from Minh Dang Quang Law Firm noted that the National Assembly’s agenda for 2019 and 2010 doesn’t include reconsideration of PIT Law. Meanwhile, it will always take time to amend laws.

Mai Chi



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.  

Vietnam’s GDP per capita to increase 4-fold by 2030

Vietnam’s GDP per capita to increase 4-fold by 2030

Vietnam is predicted to join an exclusive list of economies expected to sustain growth rate of around 7% during 2020s, translating into a 4-fold increase in the country’s capital income from US$2,500 in 2018 to US$10,400 by 2030.  


Credit package for social housing not as productive as hoped

Few have benefited from the VND15 trillion credit package for social housing as there is a limited supply of low-cost homes.


More effective tax collection of e-commerce necessary


Cultural industry to contribute 10% of Hanoi’s GRDP by 2045

Authority warns of scam South Korea labour export programmes

The Department of Overseas Labour under the Ministry of Labour, Invalids and Social Affairs have warned about scams targeting people who want to work in technical occupations in South Korea.

Textile firms call for favourable policies amid pessimistic prospects

With a pessimistic outlook for the second half of 2022, textile firms are calling for favourable governmental policies to turn their situation around.

Enterprises ignoring waste management to face penalty

Enterprises that are required to manage their waste and have yet to fulfill their payment obligations will be inspected, with a possible fine of up to VND2 billion for violations.

Favorable conditions pledged for Qatar’s funds, enterprises

Competent Vietnamese agencies are willing to create favorable conditions for Qatar’s investment funds and enterprises to seek investment opportunities in the country.

Woman posing for Tiktok video at Phu Quoc airport banned from flying for six months

The head of the Civil Aviation Authority of Vietnam Dinh Viet Thang has decided to issue a flight ban on a woman posing for a TikTok video at the Phu Quoc Airport tarmac for six months.

“1,000 public employees quitting jobs each month is inaccurate data”: HCM City

The Ho Chi Minh City Department of Home Affairs says the information that 6,177 public employees quit their jobs in the first half of 2022 is incorrect. These are actually statistics from January 1, 2020 to June 30, 2022.

Gov't sets up six working groups to inspect disbursement of public investment capital

Prime Minister Pham Minh Chinh has tasked six working groups to inspect disbursement of public investment capital in 41 ministries, state agencies and 18 localities where disbursement is below the national average rate of 34.47 percent as of July 31.

Vietnam to mobilise $360 billion for sustainable development targets

Vietnam needs to mobilise $360 billion for implementing its green and sustainable development targets by 2030.

Vietnam to make Apple Watch, MacBook for first time

Apple is in talks to make Apple Watches and MacBooks in Vietnam for the first time as the US tech giant looks to diversify production away from China, Nikkei Asia reported.

Japanese firm buys 35.1% stake at Vietnam’s power company

JERA Inc., a power generation company of Japan, has signed a deal to buy a 35.1% stake at Vietnam’s Gia Lai Electricity JSC (GEC) to tap the Southeast Asian nation's growing demand for electricity and further its own decarbonisation efforts.

Goalkeeper Dang Van Lam officially signs contract with Binh Dinh

Goalkeeper Dang Van Lam has signed a three-year contract with Binh Dinh FC and is expected to play his first match for his new team in the V.League 1 this weekend.

Vietnam faces shortage of Protamine sulfate

The Drug Administration of Vietnam (DAV) has sent a letter to provincial and municipal departments of health, hospitals and drug importers, asking them to supply information on stocks of Protamine sulfate.