Vietnam to soon raise taxpayers' personal deduction: official

The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.

Dang Ngoc Minh, deputy head of the General Department of Taxation, made the statement at the seminar “Improving tax and customs policies to promote business development” held in Hanoi on Thursday.

The changes are mentioned in the draft amended Law on Personal Income Tax that the Government recently submitted to the National Assembly and is expected to be approved at the parliament's October 2025 session, according to Minh.

"The proposed adjustment to the family deduction level aims to reduce the tax burden on workers, ensure fairness and consistency with income and price fluctuations, especially in the context that the Government is implementing many measures to stimulate consumption and support social security," he added.

Minh noted that 2025 will be a pivotal year for the tax sector, as it simultaneously fulfills a heavy state budget revenue task while implementing major institutional, policy and organizational reforms, laying the foundation for full-scale digital transformation in tax administration.

Despite the impact of super typhoon Yagi at the end of 2024 and reciprocal tax measures from the United States disrupting supply chains, total budget revenue managed by the tax sector as of October 14 had reached VND1,744 trillion ($66.22 billion), exceeding the year's target by 1.5%.

To support businesses in recovery and growth, the Ministry of Finance has submitted to the Government and the parliament a series of fiscal policies to promote production and business.

Among them, the parliamentary Resolution No. 204/2025/QH15 continues the 2% reduction in VAT until the end of 2026 - a measure aimed at boosting consumption and supporting sustainable growth.

Additionally, the government's Decrees No. 81 and 82/2025/NĐ-CP have extended deadlines for the payment of VAT, corporate income tax (CIT), personal income tax (PIT), and land rent.

In the first six months of 2025 alone, the total value of deferred, exempted, or reduced taxes reached nearly VND97 trillion ($3.68 billion), helping enterprises maintain operations and protect jobs.

A notable reform, the Law on Corporate Income Tax No. 67/2025/QH15, effective from October 1, 2025, embodies a strong reform spirit by reducing CIT rates to 15% for enterprises with annual revenue under VND3 billion ($113,920), and 17% for those with revenue from VND3-50 billion ($1.9 million)

It also grants three years of tax exemption for newly established small and medium-sized enterprises, and two years for household businesses that convert into enterprises.