>> No changes in personal income tax law this year

>> Finance Ministry proposes personal income tax changes

>> NA official: No resolution on personal tax exemption

The Ministry of Finance will seek approval from the government and the National Assembly to raise the personal income tax threshold to over VND9 million (USD436.8).

The Ministry of Finance will seek approval from the government and the National Assembly to raise the personal income tax threshold to over VND9 million

The ministry will also propose personal income tax (PIT) exemptions for some groups of people.

The two proposals have been submitted to Truong Tan Sang, permanent member of the Secretariat of the Communist Party of Vietnam Central Committee, and will send them to the government’s regular meeting late June and the National Assembly’s session in July.

The move is aimed to support middle-income earners while they wait for a revision of the Law on Personal Income Tax.

Under the ministry’s proposals, a person who earns less than VND5 million (USD242.7) and has a dependant will be exempted from a personal income tax of 5%.

According to the ministry, single people who earn less than VND9 million (USD436.8) will not have to pay personal income tax. A person who has a dependant will have to pay the tax if he/she has a monthly income of over VND10.6 million (USD514.5).

If this is approved, the maximal monthly personal income tax exemption will be VND250,000 (USD12).

The ministry has also proposed PIT exemptions on people who has monthly income of up to VND6.6 million (USD320.3) and a dependant and those with income of VND8.2 million (USD398) with two dependants.

The approval of these exemptions will save people VND50,000 (USD2.42) a month, benefiting around 250,000 people.

The ministry plans to seek permission from the government and the National Assembly for PIT exemptions on securities investment from August 1 this year to the end of 2012. This would leave dividend incomes free from PIT payments.

The Ministry of Finance has proposed widening the scope of corporate tax delay to labour-intensive companies like apparel and footwear producers - a favour currently granted to small and medium-sized enterprises.

According to the Ministry of Labour, Invalids and Social Affairs, the Ministry of Finance recommended reducing half of corporate income tax and value added tax for businesses, so that they could reduce operational costs and instead focus on higher staff wages.