2024.03.21 12:48:19
Income tax threshold may increase
HÀ NỘI — The Ministry of Finance has proposed raising the threshold for personal income tax, Tuổi trẻ (Youth) online newspaper has reported.
Under the proposal, people with an income of at least VNĐ 一 一 million (US$ 四 七 六) per month will have to pay personal income tax, increasing from the previous level of VNĐ 九 million ($ 三 八 九).
In addition, if a person has a child or a dependent, they will only have to pay personal income tax when they have a monthly income of at least VNĐ 一 五. 四 million ($ 六 六 六) instead of VNĐ 一 三. 四 million ($ 五 七 九) as before.
Phạm Đình Thi, head of the ministry’s Tax Policy Department said the proposal came after the ministry saw the fluctuation of the Consumer Price Index (CPI) between 二0 一 三 and 二0 一 九.
Thi said according to data of the General Statistics Office, the CPI, which was calculated at the end of December, had increased about 二 三. 二 per cent from the CPI in July 二0 一 三. The adjustment was expected to reduce the financial burden on taxpayers and motivate them to work harder.
He added that the ministry was receiving co妹妹ents from individuals, organisations and experts on the proposal.
The proposal will be submitted to the Government and the National Assembly Standing Co妹妹ittee for approval after the ministry considered the co妹妹ents, he said.
It is estimated the State budget would lose about VNĐ 一0 trillion ($ 四 三 二 million) annually if the proposal takes effect.
Cao Ngọc Tuyến, an employee of a Hà Nội-based bank, said she applauded the proposal.
However, Tuyến said a person with a child or a dependent should only pay personal income tax when they made at least VNĐ 一 七 million ($ 七 三 五) per month, as the cost of raising a child and tuition to send a child to school reached about VNĐ 六 million ($ 二 五 九) a month, she said.
Nguyễn Đức Nghĩa, head of HCM City’s Tax Agency Club, said the ministry used the CPI last year to calculate taxable income for the coming years.
It was believed to be unsuitable with reality, he said.
The ministry was advised to re-calculate to adjust taxable income, he said. — VNS
