In the proposal dossier for the development of the Personal Income Tax Law (replacement) sent to ministries, branches, localities and people for comments, the Ministry of Finance proposed to continue to maintain the regulation on exemption of personal income tax on savings interest as currently regulated.
According to the Ministry of Finance, this is to encourage individuals who do not have a need to directly invest in production and business to deposit savings through banks – an important capital mobilization channel for the economy, and at the same time, it is also a welfare policy for those who are unable to work (retirees, disabled people…) who have idle money to deposit in banks to receive interest.
This policy also helps banks mobilize long-term capital to serve credit growth and investment in economic development. Maintaining this regulation is considered an important measure to stabilize the financial system and protect people’s rights.
In the proposal dossier for the development of the Personal Income Tax Law (replacement) sent to ministries, branches, localities and people for comments, the Ministry of Finance proposed to continue to maintain the regulation on exemption of personal income tax on savings interest as currently regulated.
According to the Ministry of Finance, this is to encourage individuals who do not have a need to directly invest in production and business to deposit savings through banks – an important capital mobilization channel for the economy, and at the same time, it is also a welfare policy for those who are unable to work (retirees, disabled people…) who have idle money to deposit in banks to receive interest.
This policy also helps banks mobilize long-term capital to serve credit growth and investment in economic development. Maintaining this regulation is considered an important measure to stabilize the financial system and protect people’s rights.
The dossier proposing to develop the draft Law on Personal Income Tax (replacement) is expected to be reported to the Government to report to the National Assembly to propose overall amendments to regulations related to current personal income tax policies with 7 policy groups.
Many contents, once approved by competent authorities, will contribute to reducing tax obligations for taxpayers, ensuring compliance with the direction of reforming the tax policy system in general and personal income tax in particular, as determined in the documents and resolutions of the Party and State.
Specifically: Adjusting the increase in family deductions for taxpayers in accordance with changes in living standards, price indexes and macroeconomic indicators in the recent period and forecasts for the coming period;
Amending and supplementing the deductible charitable and humanitarian contributions as well as other specific deductions when determining taxable income to institutionalize the policies of the Party and State in promoting the development of areas such as healthcare and education;
Adjust tax rates and income gaps within tax brackets of the Progressive Tax Schedule;
Supplementing regulations on tax exemption and reduction to implement the Party and State’s policies and orientations on a number of priority areas, on attracting high-quality human resources for socio-economic development…