Nhan Dan - The Ministry of Finance has proposed revision of the Law on Personal Income Tax (PIT) to increase the starting point of taxation on personal income from VND 4 million to VND 9 million per month.
The proposal was made at the monthly meeting of the Government Office in Hanoi on July 31.
According to the revision, the dependant deductions will be raised from VND 1.6 million to VND 3.6 million per dependent per month, equivalent to VND 43.2 million per year. Thus an individual who has one dependent and earns a monthly salary of less than VND 12.6 million would enjoy tax exemption.
The Finance Ministry reported that the amendments are based on GDP growth, consumption price index (CPI) fluctuations, the minimum salary level, the project on salary policy reform, and sociological surveys and opinions on living standards and income from people, ministries and sectors. If market prices vary more than 20%, the dependant deductions will be adjusted accordingly to respond to the changes.
The amended PIT is expected to be approved by the National Assembly in late 2012 and come into effect in July 2013.