Deputy Secretary General of the National Assembly said that the National Assembly Standing Committee had agreed to increase the personal income tax deduction from 9 to 11 million dong.
At a press conference on the afternoon of May 18, Mr. Nguyen Truong Giang – Deputy Chairman of the Law Committee and Deputy Secretary General of the National Assembly said that last week, the meeting of the National Assembly Standing Committee considered and decided to increase the tax rate. reduce family circumstances to 11 million dong according to the Government’s report.
Thus, the deduction for family circumstances increased from 9 million to 11 million dong a month, dependents from 3.6 million to 4.4 million dong per month. The government says about 1 million people will not have to pay personal income tax with the new deduction.
Mr. Giang added, under the authorization of the National Assembly, the Standing Committee of the National Assembly does not have the right to decide who is subject to tax, but only decides to adjust the increase or decrease in deductions for family circumstances if the CPI fluctuates more than 20% on the basis of taxable income. proposed by the Government. In fact, from 2013 to now, CPI has increased by 23.2%.
“The Government’s proposal to increase the family deduction to 11 million dong is in line with the increasing fluctuation of CPI,” said Truong Giang.
The new family circumstance-based deduction will apply to the 2020 tax period, because according to the current regulations for the salary tax period, the enterprise’s salary is calculated on an annual basis, from January 1. The cases that have temporarily paid tax according to the family circumstance-based deduction rate of 9 million VND per month and 3.6 million VND per dependent will be re-determined when finalizing personal income tax in 2020.
Agreeing with the reduction in family circumstances proposed by the Government, but the Finance and Budget Committee of the National Assembly proposed that the Government review and evaluate the overall implementation of the PIT Law in the period 2011-2020 to correct the situation. radically and comprehensively.
Commenting earlier, many experts assessed that the family deduction of 11 million dong was “outdated”, insensitive, especially in the context that the economy had grown much more recently than the adjustment from 9 million dong. to 11 million.
Also at the press conference, Mr. Do Van Sinh – Standing member of the Economic Committee said that the agency found that 8 North-South expressway component projects can all be invested in the form of public private investment (PPP) or government’s Invest. But according to Resolution 52 of the National Assembly, only projects that cannot be implemented will be reported to the National Assembly for a change in investment form. And currently only a section of Vinh Hao – Phan Thiet project has no investors, the remaining 7 other component projects have been pre-qualified for investors.
“The spirit is only to change the form of investment in some sections, but not to transfer all eight component projects of the North-South expressway to public investment,” said Mr. Sinh.
The government will further clarify the need to transform investment forms. It is expected that the Government’s supplementary report will be submitted to the National Assembly Standing Committee at the 45th session of the second session (expected to take place in early June, between the two sessions of the 9th session).
Thus, the new deduction will be officially applied from July 1, 2020 according to Resolution No. 954/2020/UNTVQH14 signed on June 2, 2020.
