The Ministry of Justice (MOJ) is nearly finalizing the drafting of the program on building laws and ordinances in 2024 and adjusting in 2023. One of the noteworthy items is the amended PIT Law.

The draft says that the PIT Law has played an important role in regulating the incomes of different classes of people, ensuring the reasonable mobilization of people’s incomes, encouraging the transparency of sources of incomes of individuals in working, production and business, and encouraging legitimate enrichment.

The implementation of policies related to PIT Law takes into account the steps suitable to the socio-economic conditions in Vietnam and international practice, thus reasonably mobilizing different resources for the state budget and helping solve problems in society.

However, some problems have arisen during the implementation of the law and they need to be amended to make the regulations suited to the new circumstances, so as to create more favorable conditions for taxpayers and ensure transparency and consistency of the legal system.

The government is going to propose an amended PIT Law, which is scheduled to be listed in the program on building laws and ordinances in 2025. It is expected that the draft law would be submitted to the National Assembly for opinions at the 10th session in October 2025 and get approval at the 11th session in May 2026.

The PIT Law was ratified by the 12th National Assembly on November 20, 2007 and took effect on January 1, 2009. The law was amended and supplemented twice in 2012 and 2014.

On July 1, 2020, the deduction for family circumstances was raised from VND9 million to VND11 million following the National Assembly approval. However, experts pointed out that the figure is unreasonable compared with the goods and service price increases.

Reports show that collection of PIT from individuals has increased from VND5 trillion in 2006 to hundreds of trillions of VND at present.

In 2019, PIT collections for the first time exceeded VND100 trillion threshold, reaching VND109.4 trillion. The figure continued to rise in 2020 and 2021, despite impacts from the Covid-19 pandemic, reaching VND110 trillion.

In 2022, the General Department of Taxation (GDT) planned to collect VND118.075 trillion from PIT. But in January-July, the revenue was VND106.527 trillion, or 90.1 percent of the yearly plan, accounting for 9.8 percent of total budget revenue.

Tran Chung