Vietnam's personal income tax revenue hits decade high

Personal income tax revenue in Vietnam reached VND166.73 trillion ($7.11 billion) in 2022, a decade high and up 27% year-on-year.

The figure exceeded the target by 38%, according to the General Department of Taxation (GDT).

The tax authority attributed the high revenue to strong growth on the stock and property markets in 2021, as taxes for income generated in 2021 were collected in 2022.

Another reason was digital tax payments, which was boosted by eTax Mobile, a mobile app helping taxpayers and linking tax payments with bank accounts, the GDT added.

Vietnam’s overall tax revenues went up 12.6% year-on-year to VND1,515 trillion ($64.62 billion) in 2022, exceeding the target by 29%.

The figure was 3.5 times and 1.5 times higher than in 2013 and 2020, respectively, when new personal income tax (PIT) rules allowed for bigger tax reductions and exemptions according to family circumstances.

Still, PIT revenues have grown steadily from VND65.24 trillion in 2016 to VND123 trillion in 2021, and then VND166.73 trillion ($7.11 billion) in 2022.

Due to this jump, laborers have raised concerns and urged authorities to amend the PIT policy toward more tax reductions based on family circumstances, in line with the government's hikes to minimum wage levels.

The biggest contributors to PIT were laborers, the GDT said. Other key sources included incomes from property transactions, inheritances, and incomes from the stock markets.