[TÀI CHÍNH KINH DOANH] Đề xuất tăng ngưỡng chịu thuế thu nhập cá nhân lên 150 triệu đồng/ tháng

Brief Summary

The National Assembly delegates discussed revisions to the personal income tax law, focusing on making it fairer and more reasonable. Key points included adjusting family deductions to reflect actual living expenses, re-evaluating tax rates, considering the imposition of taxes on gold bar transactions, and raising the revenue threshold for tax exemptions for business households. The goal is to create a transparent and feasible law that encourages contributions to a sustainable financial system.

• Family deduction levels should account for healthcare and education costs and vary by region due to differing living costs.
• The gap between tax rates in the progressive tax schedule is too large, and the highest tax rate threshold should be raised to 150 million VND per month.
• Taxing gold bar transactions requires careful consideration to avoid affecting savings and should include a specific value threshold.
• The tax exemption threshold for business households should be raised to 400-500 million VND per year to reflect current prices and living costs.

Family Deductions and Living Expenses

Delegates discussed that the current fixed family deduction level doesn't adequately address varying living expenses. They suggested incorporating essential costs like healthcare and education into the deduction, supported by invoices and documents. Applying a uniform deduction across the country is deemed unfair due to significant regional differences in the cost of living, housing, education, and healthcare. The current Labor Code defines four minimum wage zones, and a similar approach could be applied to family deductions in relation to the progressive tax schedule.

Progressive Tax Schedule and Tax Rates

The proposed reduction in tax rates from seven to five levels was discussed, but delegates noted that the gaps between the rates remain too large, causing significant jumps in tax liability. For instance, moving from a 5% to a 15% rate is considered unreasonable and may disincentivize individuals from striving for higher income. The highest proposed tax rate of 35% for taxable income above 100 million VND per month was also questioned, as this rate was initially set in 2009 for an income of 80 million VND. Given the increase in per capita income since then, delegates proposed raising the highest taxable income threshold to around 150 million VND per month.

Taxation of Gold Bar Transactions

The imposition of personal income tax on gold bar transactions at a rate of 0.1% on the transfer price was a significant point of discussion. Concerns were raised about the impact on individuals who buy gold as a form of savings, as gold has traditionally been considered a stored asset for difficult times. Delegates emphasized the need for careful calculation to ensure transparent market management without affecting legitimate savings practices. They also noted the increasing popularity of gold rings, with prices nearing those of gold bars, and questioned whether taxing gold bar transfers might lead to market distortions.

Value Thresholds for Gold Taxation

To stabilize the market and limit speculation, delegates proposed setting a specific value threshold before applying tax on gold transactions. This would avoid taxing small transactions or individuals saving gold for long-term goals like buying a house. One suggestion was to align the threshold with the value of social housing, currently around 700-800 million to 1 billion VND. Additionally, delegates proposed calculating tax only on the price difference (actual profit) to avoid taxing the capital when transferring gold bars.

Tax Exemption for Business Households

The draft law maintains the exemption from personal income tax and value-added tax for business households with revenue less than 200 million VND per year. However, many delegates argued that this revenue level is outdated and no longer reflects current prices and living costs. They suggested raising the tax exemption threshold to 400-500 million VND to ensure fairness and alleviate the burden on small businesses that contribute to job creation and the local economy. Calculations were presented to illustrate that even with a revenue of 41.6 million VND per month, the resulting income after deducting the highest profit rate would be minimal.

Proposed Adjustments to Tax Exemption Threshold

Expanding on the discussion of tax exemptions for business households, delegates proposed raising the threshold to 500-600 million VND or more. They argued that business owners need to recover capital, pay wages, and generate profits. Calculating labor and profit at approximately 30%, they suggested that a daily revenue of 2 million VND or more, translating to an annual revenue of at least 540-600 million VND, would be a more satisfactory level given current market conditions.

Building a Fair and Sustainable Tax Policy

The discussions on family allowances, taxes on gold bars, and business households reflect a shared desire among National Assembly delegates and experts to create a tax policy that is fair and aligned with people's lives. The aim is to develop a well-structured, transparent, and feasible law that encourages citizens to contribute and collaborate with the state in building a sustainable financial system.