VCN- Deputy General Secretary of the National Assembly Nguyen Truong Giang said that the NA’s Standing Committee has approved increasing family circumstance deduction level from VND9 million to VND11 million.
|Business households have been offset Family Circumstance Deduction when calculating Personal Income Tax|
|Raising deduction for family circumstance will reduce difficulties for taxpayers|
|Adjustment of deductions for family circumstance consistent with price fluctuation|
|Illustrative photo. Internet.|
At a press conference on the tentative agenda of the 14th National Assembly’s 9th working session on May 18, Mr. Nguyen Truong Giang, Deputy Chairman of the NA’s Committee on Legal Affairs and Deputy General Secretary said that at the working session last week, the NA’s Standing Committee considered and decided to increase the family circumstance deduction level to VND11 million according to the Government's report.
Thus, the family circumstance deduction level increases from VND9 million to VND11 million/month; deduction for dependents increases from VND3.6 million to VND4.4 million/month. The Government said that about one million people will not have to pay Personal income tax with the new deduction level.
Giang added that under the authority of the National Assembly, the Standing Committee of the National Assembly has no competency to decide who is subject to tax, but it only adjusts the increase or decrease of family circumstances deduction level if the CPI fluctuates by more than 20% on the basis of proposal of the Government. In fact, from 2013 to now, the CPI has increased by 23.2%.
"The Government’s proposal increasing the family circumstance deduction level to VND11 million is consistent with the increase of CPI," Giang said.
The new family circumstance deduction level will apply to the tax term 2020, according to the current regulations, the wages and salaries of enterprises are calculated annually, from January 1. Businesses will deposit personal income tax and when implementing the tax finalization they will be refunded.
By Thanh Nguyen/Ngoc Loan