The starting level for personal income tax can be raised to 10 million VND.

The Ministry of Finance has proposed to amend the Personal Income Tax (PIT) Law to use the minimum wage as the basis for calculating the taxable starting point. Accordingly, the new law may raise the taxable starting point to VND10 million.

In the revised law that the Ministry of Finance is conducting, the Ministry proposes to use the minimum wage as the basis for calculating the taxable starting level. With this option, the taxable starting level is equal to 8 times the minimum wage of the production and business sector and is changed annually according to the adjustment level of the minimum wage of the production and business sector.

The level of inflation is affecting the lives of workers.

The reason for using the minimum wage in the production sector as the basis for calculating tax is because this wage is often higher than the minimum wage in the administrative sector and is applied from January 1st every year, so it is more beneficial for taxpayers.

For example, if the minimum wage in the domestic production sector (calculated by region) is at least VND 830,000/month and at most VND 1,350,000/month, the corresponding taxable starting levels are VND 6,640,000 and VND 10,080,000.

Along with the above plan, the Ministry of Finance also considers amending the family deduction level to 3 times the minimum wage.

And a new point that the Ministry of Finance proposed to amend and supplement the law is to calculate tax by household, based on the total income of the whole family. The total income of a household (including income from salary, wages, securities transfer, house rental, etc.) will be divided equally among each person in the direct relationship.

Each working person is counted as one person, two dependents are counted as one person, then the total income is divided by the number of people in the family. If the average income of that household is less than the taxable starting point, then there will be no tax and vice versa. For convenience, if that household has to pay tax, it can be classified as one, the husband or wife will pay the tax and the tax will be deducted at the place where the income is paid...

According to a leader of the Ministry of Finance, the Ministry has just submitted to the Prime Minister a proposal to amend the Personal Income Tax Law. Because compared to the actual situation, the provisions in the law such as the starting tax rate of 4 million VND/month... applied from 2009 to now are outdated. Amending the law is very urgent when inflation is high, prices are increasing, significantly affecting people's lives.

According to Dan Tri