The Ministry of Finance has responded to citizens’ petitions from several localities regarding personal exemptions.
In a document sent to the National Assembly’s Petitions Committee, citizens from six provinces (Binh Dinh, Ha Giang, Thai Nguyen, Tra Vinh, Tuyen Quang, and Tay Ninh) proposed adjustments to the personal exemption amount for taxpayers and dependents, as well as a progressive tax rate structure that ensures alignment with reality.
In its response, the Ministry of Finance explained that the personal exemption amounts for taxpayers and their dependents are set based on the general social standard, regardless of income level and varying consumption needs. The law already provides tax reductions for individuals facing difficulties due to natural disasters, fires, accidents, or critical illnesses.
“The specific personal exemption amount needs to be carefully studied and calculated, ensuring it is higher than the per capita GDP, regional minimum wages, and per capita consumption expenditure over a certain period,” the Ministry of Finance stated.
Citizens from multiple localities have requested an increase in the personal exemption amount for taxpayers. In the picture, people are buying essential daily goods. (Photo: BGL)
Citing the 2023 Civil Living Standards Survey by the General Statistics Office, the Ministry of Finance stated that Vietnam’s average monthly per capita income in 2023 was 4.96 million VND. The top 20% of the population, considered high-income households, had an average monthly per capita income of 10.86 million VND.
The current personal exemption amount for taxpayers is 11 million VND per month, equivalent to 2.2 times the average per capita income (significantly higher than the range of 0.5-1 time commonly applied by other countries). The exemption amount for dependents, set at 4.4 million VND per person per month, is also close to the current average per capita income.
Regarding fluctuations in the consumer price index, the Ministry of Finance noted that according to data from the General Statistics Office, the consumer price index increased by 3.23% in 2020, 1.84% in 2021, 3.15% in 2022, and 3.25% in 2023. Since the last adjustment to the personal exemption amount in 2020, the consumer price index has increased by only 11.47%, which does not meet the criteria for adjusting the exemption amount as per regulations.
The Ministry of Finance is in the process of reviewing and evaluating the Personal Income Tax Law, including the provisions on personal exemption amounts and progressive tax rates. It is expected that the draft amended Personal Income Tax Law will be included in the law-building program in 2025, submitted to the National Assembly for consideration in October 2025, and approved in May 2026.
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