The government’s report highlights that by the end of 2025, the Consumer Price Index (CPI) will have fluctuated by over 20% compared to the last adjustment of the family deduction rate in 2020, reaching 21.24%. This provides a legal basis for revising the family deduction rate.
After careful consideration, the Ministry of Finance has proposed two adjustment plans for the family deduction rate:
Plan 1 adjusts the family deduction rate based on the CPI increase. Under this plan, the deduction for the taxpayer themselves would rise from the current 11 million VND/month to approximately 13.3 million VND/month (an increase of about 21.24%). Similarly, the deduction for each dependent would increase from 4.4 million VND/month to 5.3 million VND/month (also a 21.24% increase).
“Implementing this plan is expected to reduce the state budget by approximately 12 trillion VND annually compared to current revenue and the number of taxpayers,” stated Deputy Minister of Finance Nguyễn Đức Chi.
Deputy Minister of Finance Nguyễn Đức Chi at the meeting.
Plan 2 proposes adjusting the family deduction rate based on the average income growth rate per capita and the average GDP growth rate per capita.
Under this plan, the deduction for the taxpayer themselves would increase from 11 million VND/month to approximately 15.5 million VND/month (a 40.9% increase). The deduction for each dependent would rise from 4.4 million VND/month to about 6.2 million VND/month (also a 40.9% increase).
With Plan 2, an individual taxpayer (with no dependents) earning 17 million VND/month, after deducting insurance (10.5% or 1.785 million VND) and the 15.5 million VND deduction for themselves, would not be subject to tax (only income exceeding 17.285 million VND/month would be taxed at a starting rate of 5%).
For a taxpayer with one dependent earning 24 million VND/month, after deducting insurance (2.52 million VND), the 15.5 million VND deduction for themselves, and the 6.2 million VND deduction for the dependent, they would also not be subject to tax (only income exceeding 24.22 million VND/month would be taxed at a starting rate of 5%).
Only income exceeding 186 million VND/year will be subject to personal income tax.
For a taxpayer with two dependents, an income of 31.155 million VND/month would still not be subject to tax (only income exceeding 31.155 million VND/month would be taxed at a starting rate of 5%). Implementing this plan is expected to reduce the state budget by approximately 21 trillion VND annually compared to current revenue and the number of taxpayers.
According to Mr. Chi, the majority of opinions support Plan 2. Therefore, the government has submitted to the National Assembly Standing Committee the adjustment of the family deduction rate according to Plan 2: increasing the deduction for the taxpayer themselves to 15.5 million VND/month and the deduction for each dependent to 6.2 million VND/month.
After discussion, the National Assembly Standing Committee approved the resolution. Consequently, the deduction rate for taxpayers is set at 15.5 million VND/month (186 million VND/year), and the deduction for each dependent is 6.2 million VND/month.
This resolution takes effect from the date of signing and will be applied from the 2026 tax year.
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