>> Finance Ministry proposes personal income tax changes
>> NA official: No resolution on personal tax exemption
The National Assembly has turned down a proposal by the Ministry of Finance for changes in the personal income tax law this year.
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| No changes in personal income tax law this year |
The NA’s National Financial Supervisory Commision puts off enforcement of the changes until 2012. These changes in the regulations would have included tax reductions and heightened the threshold for tax exemptions.
The proposal recommended that exemptions should be given to those who make from VND5 million (USD239,234) per month for individuals, and VND6.5 million (USD311) for those with 1 to 2 dependents.
Also recommended was a rise in the personal income tax threshold, from VND4 million (USD193.2) to VND10 million (USD483.09).
There was also an increase in the deductions that could be claimed for dependents.
Dinh Van Nha, Vice Chairman of the committee, said the laws for personal income tax were implemented just two years ago, and should not be changed because of the current, short-term, and economic climate.
Le Dinh An, Director of the National Centre for Socio-economic Information and Forecast under the Ministry of Planning and Investment, dissented. He said that the proposed tax reductions were necessary under the current circumstances of high inflation.
Dr. Tran Du Lich, on the other hand, said that the Government should first consider increasing deductions for dependents. After that, he said, more careful consideration should be taken before making any changes in the personal income tax code.
The ministry has said that the Government had already agreed to an income tax exemption for 5% on dividends, and 0.1% on securities. This proposal, however, is still pending on the National Assembly’s approval.
