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Monday, August 18, 2025

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personal income tax

Redefining fairness for PIT

In the latest proposed revision of Vietnam’s personal income tax (PIT) policy, the Ministry of Finance suggests increasing personal and dependent deductions, reducing the number of tax brackets, and widening the income range between brackets. But will these changes address the core issue of tax fairness, especially as the structure of worker incomes and expenses has significantly evolved over the years? Higher deductions, fewer brackets After years of anticipation—particularly from salaried employees, the Ministry of Finance has released two key draft documents concerning personal income tax: a draft Resolution from the National Assembly Standing Committee on adjusting family-based deductions, and a draft Law on Personal Income Tax (replacement version). The draft Resolution on increasing the family circumstance deduction, or the personal and dependent deduction, is expected to be reviewed and passed during the National Assembly Standing Committee’s session in September 2025 and take effect from the 2026 tax year. The ministry has proposed two options: – Option 1: Based on a projected 21.2% increase in the Consumer Price Index (CPI) between 2020 and 2025, taxpayers would be allowed a deduction of VND13.3 million/month and VND5.3 million/month per dependent. – Option 2: Based on growth in average per capita income and […]
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A roadmap, not a leap

The draft of the amended Personal Income Tax Law recently released by Vietnam’s Ministry of Finance has sparked significant debate with a notable proposal:...

Taxing real estate

The Ministry of Finance has proposed amending the method for calculating personal income tax on real estate transfers, shifting from a flat 2% tax...

Daily Round-up: June sees record-high number of new business registrations

Today’s Top Headlines – July 3, 2025: Vietnam’s exports to U.S. subject to 20% tariff Personal income tax deductions proposed for education, healthcare June...

Personal income tax revenue beats annual target

HCMC – Vietnam’s personal income tax (PIT) revenue amounted to VND170 trillion in the first 11 months of this year, surpassing the full-year target...

Ministry proposes expanding personal income tax exemptions

HCMC – The Ministry of Finance has introduced a draft law to reform personal income tax (PIT), focusing on expanding exemptions and reductions to...

Does the pay raise lift quality of life?

The recent increase in salaries and allowances has brought joy to tens of millions of people in Vietnam. However, whether the quality of life...

Taxman eyes dividends, bonus shares

HCMC – The General Department of Taxation has called for local tax offices to prevent possible losses of personal income tax from those shareholders getting...

Personal income tax and economic growth

Rising living costs and high personal income tax rates have forced many households and individuals to tighten their spending as their disposable income has...

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