For now, only dependents whose dependents were added from July 1st onwards will need to be issued a tax identification number immediately.

Mr. Nguyen Van Phung, Deputy Director of the Tax Policy Department (Ministry of Finance), recently announced that the Ministry is finalizing a draft decree guiding the amended Personal Income Tax Law. The aim is for the guidance document to be simple, easy to understand, and effective in monitoring taxpayer income.

To control tax fraud, including falsely declaring dependents to claim personal deductions, Mr. Phung said that from July 1st, the tax authorities will issue tax identification numbers to dependents to monitor whether individuals' tax declarations are truthful.

This information has caused concern among many people because it will add extra procedures for those eligible for tax deductions. However, Ms. Ta Thi Phuong Lan, Deputy Head of the Personal Income Tax Collection Management Department (General Department of Taxation), stated that to avoid disruption affecting taxpayers' rights, only dependents who become dependents from July 1st onwards will need to be issued tax identification numbers immediately. Dependents who are already eligible for tax deductions will continue to be considered as normal until the tax authorities issue tax identification numbers to them. The tax authorities will proactively issue tax identification numbers to dependents without requiring taxpayers to register.

In addition, according to Mr. Nguyen Van Phung - Deputy Director of the Tax Policy Department:Notably, securities traders now have the option of paying tax at a rate of 0.1% of the selling price or 20% of the difference between the selling price and the purchase price. Under the old regulations, those wishing to pay tax using the difference method had to register before December 31st of the previous year. Now, under the new regulations, they can calculate the tax themselves at the end of the year, choose whichever method is most advantageous, and register then, rather than having to register at the beginning of the year. This regulation has been very positively received by investors.

Furthermore, according to the draft decree guiding the Personal Income Tax Law currently being submitted, the frequency of monthly and quarterly tax declarations and payments will be reduced. Specifically, under the old regulations, entities withholding personal income tax, if the amount withheld is 5 million VND/month or more, must declare and pay monthly; those below that amount must declare and pay quarterly. However, the threshold for withheld tax amounts of 5 million VND or more will be reviewed, reducing the number of entities declaring monthly and increasing the number declaring quarterly, thus creating convenience for taxpayers and income payers.

Regarding tax declaration and settlement for individuals with income sources outside their main place of work: For example, a teacher who teaches in multiple locations may have their social insurance contributions deducted at a progressive rate with a value-added tax (VAT) at the registered social insurance office, while deductions at other locations, if they have a tax identification number, are 10%; if not, they are 20%. Going forward, in cases where taxes have already been paid at the 10% deduction rate, if the taxpayer later finds that the amount of income from these sources outside their main place of work does not exceed 10 million VND per month, they will no longer be required to file a tax return. This will reduce the procedures for taxpayers. While this might slightly reduce the budget, it will greatly benefit society as a whole by significantly streamlining procedures.

Regarding tax refunds, Ms. Nguyen Thi Cuc, former Deputy Director General of the General Department of Taxation, stated that in Vietnam, tax deductions are very quick, but refunds are slow. Like in other countries, tax refunds are processed through taxpayers' accounts. However, the State is currently appropriating taxpayers' money. This is because, according to regulations, personal income tax is declared and paid monthly.

Annually, income in January, February, and March is higher than in other months because it's usually the Lunar New Year period. However, if their annual income is not yet at the tax threshold, they have to wait until March of the following year to receive a refund of the tax that was temporarily withheld from the previous year.

Therefore, Ms. Cúc suggested considering the option of refunding taxes through personal accounts to avoid inconvenience for both taxpayers and tax authorities.

(According to VOV) -LH