The Minsitry of Finance will seek approval to revise income tax laws to adjust for heavy spikes in inflation.
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People are studying regulations on personal income tax |
According to the ministry, changes in personal income tax laws should include an increase in the taxable income threshold from VND4 million (USD200) per month to VND6 million (USD300) per month.
A widening of tax brackets is also under consideration, along with an increase in taxpayer deductions from VND1.6 million (USD80) to VND2.4 million (USD120), or three times higher than the minimum salary.
The ministry said that Vietnam has been seeing sharp annual rises in the consumer price index (CPI). Last year the increase was 11.75%, while in 2009 it rose by 6.88%. For this reason, the ministry has said that the laws on taxable income that have been in place since 2009 should be adjusted.
The Ministry of Finance is soliciting the input of localities and businesses for its amendments to PIT laws, to be submitted to the National Assembly for consideration.
Lawyer calls for widened tax brackets Current PIT laws have established a seven-level progressive tax scheme. Personal income of under VND5 million (USD250) per month is taxed at 5%. Monthly income of between VND5 million and VND10 million (USD500), is taxed at a rate of 10%. Tran Xoa, Director of the Minh Dang Quang Law Company, was recently cited by Thanh Nien as saying that the range of income tax brackets is too narrow. Xoa suggested that brackets should be changed so that the 10% rate be applied to monthly incomes of between VND5 million (USD250) and VND30 million (USD1,500); 20% for monthly incomes of between VND30 million (USD1,500) and VND60 million (USD3,000); capping off at 30% for incomes of more than VND60 million. |