On June 02, 6, the Standing Committee of the National Assembly issued a decision to increase the level increase the family deduction from 9 million VND / month to 11 million VND / month and the deduction for dependents from 3,6 million VND / month to 4,4 million VND / month.
This Resolution takes effect from the date of 01 month 7 year 2020 , and Apply from the calculation periodYes year 2020.
Provisions on raising the level of family allowances deduction Personal income tax
The family allowances specified in Clause 1, Article 19 of the 2007 Law on Personal Income Tax (amended and supplemented according to the amended Law on Personal Income Tax 2012) are adjusted as follows:
- The deduction rate for the taxpayer himself is 11 million VND / month (132 million VND / year). Currently, this deduction is 9 million dong / month (108 million dong / year).
- The deduction level for each dependent is 4,4 million / month. Currently this deduction is 3,6 million / month.
With the increase or decrease of the taxpayer himself / herself up to 11 million VND / month, that does not mean that the individual will only spend about 11 million VND, which is only is the deductible before tax is calculated. After deducting salaries and wages, social insurance, health insurance and unemployment insurance deduction that the taxpayer pays, minus family allowances, charitable and humanitarian contributions ... the rest is income as a basis calculate personal income tax.
Accordingly, the milestones of non-tax income will increase to VND 11 million per month (without dependents); 15,4 million dong / month (with 1 dependent) and 19,8 million dong / month (with 2 dependents). Thus, a large proportion of people who are paying personal income tax at level 1 (accounting for 44% of the personal income taxpayers) will turn to non-tax payers. People with incomes below 15 million / month with dependents will not have to pay taxes.
The personal income tax payment is still applied according to the partially progressive tariff, the lowest is 5% and the highest is 35%. The rest after the PIT is the taxpayer.
Handling the calculated personal income tax according to the old rate
Cases of temporary tax payment according to the family circumstance-based reduction level specified in Personal income tax Law (family allowances from VND 9 million / month and dependents from VND 3,6 million / month) redefined revenueYes income cdemihumans are required to pay at a family circumstance-based deduction level specified in this Resolution when settling personal income taxăm 2020.