For now, only dependents arising from July 1st will need to be issued a tax code immediately.

Mr. Nguyen Van Phung - Deputy Director of the Tax Policy Department (Ministry of Finance) has just announced that the Ministry is completing the draft decree guiding the revised Law on Personal Income Tax. The spirit is that the guiding document will be simple, easy to understand and control the income of taxpayers.

To control tax fraud, including false declarations to receive family deductions, Mr. Phung said that from July 1, the tax sector will issue tax codes to dependents so that it can monitor whether individuals' tax declarations are honest or not.

This information makes many people worried because it will require additional procedures for those who are entitled to deductions. However, Ms. Ta Thi Phuong Lan - Deputy Director of the Department of Personal Income Tax Collection Management (General Department of Taxation) - said that to avoid causing disruptions affecting the rights of taxpayers, for now, only dependents arising from July 1 will have to be issued a tax code immediately. Dependents who are being deducted will still be calculated normally until the tax authority issues a tax code for them. The tax authority will proactively issue a tax code for dependents without the taxpayer having to register.

In addition, according to Mr. Nguyen Van Phung - Deputy Director of Tax Policy Department:Notably, securities traders have the right to choose to pay tax at the rate of 0.1%/selling price or 20%/difference between selling price minus purchase price. According to the old regulation, those who want to pay tax by the difference method must register before December 31 of the previous year. Now, according to the new regulation, at the end of the year, people calculate by themselves, then see which method is beneficial and then register, not necessarily from the beginning of the year. This regulation is very positively received by investors.

In addition, according to the draft decree guiding the Law on Personal Income Tax being submitted, monthly and quarterly tax declaration and payment will be guided by reducing the frequency of tax declaration and payment. Specifically, according to the old regulations, units deducting personal income tax, if the personal income tax amount is 5 million VND/month or more, must declare and pay tax monthly, below that amount, they must declare and pay tax quarterly. In the future, the deducted tax amount of 5 million VND or more will also be reconsidered, so that the number of units declaring monthly will be reduced and the number of quarterly declarations will be increased, thus creating convenience for taxpayers and income payers.

Regarding tax declaration and tax settlement for individuals with income sources outside the main place of activity. For example, teachers teach in many places, the place where they register their social insurance book has been deducted at a progressive rate with VAT, and deductions at other places, if there is a tax code, the deduction is 10%, if there is no tax code, the deduction is 20%. From now on, in cases where taxes have been paid at the place of deduction at a rate of 10%, and later the taxpayer feels that the amount outside is not more than 10 million VND/month, it will not be necessary to declare and settle, thus reducing procedures for the taxpayer. By doing so, the budget may lose a little, but the benefit for the whole society is that the procedures are greatly reduced.

Regarding tax refunds, Ms. Nguyen Thi Cuc - former Deputy Director General of the General Department of Taxation said that in our country, tax deduction is very fast, but refund is slow. Like other countries, tax is refunded through the taxpayer's account. People's tax money is being appropriated by the State. Because according to regulations, personal income tax is declared and paid monthly.

Every year, income in January, February, and March will be higher than other months because it is usually during the Tet holiday. However, if the income for the whole year is not enough to pay tax, they have to wait until March of the following year to get a refund of the tax that was temporarily deducted from the previous year.

Therefore, Ms. Cuc recommends considering the option of tax refund through personal accounts to avoid inconvenience for both taxpayers and tax authorities./.

(According to VOV) -LH