Proposing to increase the deduction for family circumstances when calculating personal income tax because the CPI has now increased in excess of 20% compared to 2013. At the same time, it will tighten the personal income tax for online dealers, singers, actors.
Ms. Vu Thi Mai, Deputy Minister of Finance informed to the public at the regular Government press conference on the evening of March 3.
To answer the question of the reporter who suggested that the recent proposal to adjust the personal income tax (PIT) was unreasonable, Deputy Minister of Finance Vu Thi Mai said the Ministry of Finance has sent a request for extensive comments on the draft resolution on adjusting the family circumtance deduction of personal income tax deduction to the Standing Committee of the National Assembly
This proposal is based on the provisions of the Law on Personal Income Tax, which stipulates if the CPI has fluctuated more than 20% since the law took effect or since the last adjustment, the Government submitted to the National Assembly Standing Committee for adjusting the family circumtance deduction.
“We have regularly updated the consumer price index, since the law took effect, so far the CPI has increased by over 20%, we based on the provisions of the law to propose adjustments” – Ms. Mai said.
In response to a reporter’s question about collecting taxes on singers, actresses or online merchants, Ms. Mai said: “Regarding tax administration for some subjects such as singers or online business, this issue has been stipulated in the Tax Administration Law, which will be applied manage more closely “.
Reportedly, the Ministry of Finance has proposed increasing the family allowances for PIT to 11 million for taxpayers and 4.4 million for dependents to apply for the tax period 2020.
Accordingly, from 2020, the deduction level for taxpayers who have income from salaries and wages is expected to increase to 11 million VND / month, dependents 4.4 million VND / month instead of 9 million and 3.6 million today.
According to the Ministry of Finance, the figures provided by the General Statistics Office, the CPI at the end of December 2013 increased by 23.2% compared to July 1, 2013.
Based on current regulations and the real situation, the Ministry of Finance suppose that, it is necessary to adjust the family circumtance deduction of personal income tax. Therefore, the Ministry of Finance has consulted extensively with other ministries and branches to submit a draft resolution on adjusting the family circumtance deduction of personal income tax to the Government.