National Assembly Member: Outdated Personal Income Tax Calculation

In a debate at the National Assembly regarding personal income tax calculation and fiscal policies in Vietnam, Mr. Tran Van Lam, the Standing Member of the Financial and Budgetary Committee, expressed the view that regulations on personal income tax were outdated and in need of adjustment. He provided examples such as the taxable income threshold, family deductions, and tax brackets, suggesting that they have not been updated to account for changes in the minimum wage, cost of living, and inflation.

One specific point raised was the family deduction, currently set at 15.4 million Vietnamese dong (including an individual deduction of 11 million and a dependent deduction of 4.4 million), which has remained unchanged since July 2020. However, the cost of living for citizens has increased significantly after the Covid-19 pandemic, while family deductions have remained stagnant. Many other regulations concerning personal income tax have also become outdated and have been slow to adjust over the years.

The article also touches on fiscal matters, where members of the Financial and Budgetary Committee pointed out that budgetary overspending could negatively impact economic growth if not properly managed. Disbursing ODA (Official Development Assistance) funds has also been a challenge as projects funded from this source must adhere to complex procedures, leading to difficulties in fund disbursement. Some suggestions to address this issue include converting ODA loans into domestic bond issuance and utilizing Public-Private Partnerships (PPP) to attract investment.

In summary, the National Assembly’s discussion on personal income tax and fiscal matters aims to improve policies and ensure balance in the budget and investment.

(Summarized from