On June 27th, at a press conference announcing the results of the 9th session of the 15th National Assembly, Deputy Pham Thi Hong Yen, a full-time member of the National Assembly’s Committee for Economic and Financial Affairs, responded to media inquiries regarding the progress of adjusting the personal exemption amount.
National Assembly Deputy Pham Thi Hong Yen. Photo: Pham Thang
According to the current Law on Personal Income Tax, if the consumer price index (CPI) fluctuates by more than 20% compared to the time the law took effect or the time the personal exemption amount was last adjusted, the Government shall submit to the National Assembly’s Standing Committee (NA Standing Committee) a proposal to adjust the personal exemption amount accordingly with price fluctuations for the next tax period.
Ms. Pham Thi Hong Yen stated that based on the current regulations, the Government will consider submitting to the NA Standing Committee for consideration of adjusting the personal exemption amount when there are changes in the above factors in reality.
The deputy also shared that the Government is preparing to submit to the National Assembly for a comprehensive revision of the Law on Personal Income Tax at the 10th session later this year. Accordingly, the comprehensive revision of this law will include content related to the personal exemption amount.
According to Ms. Yen, in case the Government submits to the NA Standing Committee for adjustment of the prescribed personal exemption amount, without amending the law, the NA Standing Committee will issue a resolution within its competence to adjust the personal exemption amount.
At the questioning session on June 19th, in response to National Assembly deputies’ inquiries about tax and fee policies to support people and businesses in the future, Minister Nguyen Van Thang added that the Ministry of Finance is advising the Government to submit to the NA Standing Committee for the issuance of a resolution adjusting the personal exemption amount in the Law on Personal Income Tax.
Previously, during the discussion on socio-economic issues, National Assembly deputy Tran Hoang Ngan (Ho Chi Minh City delegation) proposed adjusting the personal exemption amount to match reality and emphasized that this “cannot be delayed any further.”
At the questioning resolution of the 9th session, which the National Assembly passed on the morning of June 27th, the National Assembly requested the Government and ministries to study, supplement, and perfect tax mechanisms and policies to support increasing purchasing power and stimulating domestic consumption and tourism.
According to current regulations, the personal exemption amount for taxable individuals is VND 11 million/month, and the exemption amount for each dependent is VND 4.4 million/month. Many opinions evaluate that this personal exemption amount is no longer suitable for the present.
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