The National Assembly Standing Committee has just officially issued Resolution 954 on adjusting the family deduction of personal income tax.
According to a new resolution issued by the National Assembly Standing Committee: From July 1, 2020, the family deduction for taxpayers is adjusted from 9 million VND/month to 11 million VND/month.
Accordingly, the family circumstance-based deduction for taxpayers specified in Clause 1, Article 19 of the Law on Personal Income Tax 2007 (amended and supplemented with a number of articles under the revised Personal Income Tax Law 2012) is adjusted. from 9 million VND/month to 11 million VND/month (equivalent to 132 million VND/year).
Thus, people with incomes over 11 million VND/month must pay personal income tax.
In addition, the deduction for each dependent is also adjusted from 3.6 million VND/month to 4.4 million VND/month.
This resolution takes effect from July 1, 2020 and will be applied from the tax period 2020.
The cases in which tax has been temporarily paid according to the family deduction rate specified in Clause 1, Article 19 of the Law on Personal Income Tax 2007 (amended and supplemented with a number of articles under the 2012 Amended Personal Income Tax Law) are determined. pay personal income tax at the rate of family deduction specified in this Resolution when finalizing personal income tax in 2020.
According to previous calculations by the Government, about 1 million people will not have to pay personal income tax with the new deduction. With this decision, the amount of tax payable will be reduced for all taxpayers, in which the reduction in tax payable of the group of taxpayers at the lower tier will be greater than that of the taxpayers at the higher tier.
