Proposal on changes to personal income tax exemptions in Vietnam

Proposal on changes to personal income tax exemptions in Vietnam (Internet image) 

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Proposal on changes to personal income tax exemptions in Vietnam

On February 5, 2024, the Government issued Resolution 20/NQ-CP at the regular Government meeting in January 2024.

At the meeting, the Government assigned the Ministry of Finance to research and propose to the Government changes to personal income tax exemptions to support and remove difficulties in people's lives.

At the same time, synchronously and effectively implement solutions on taxes, fees, and charges that have been promulgated by competent authorities; promptly propose and report to competent authorities on exemption, reduction, and extension policies that need to be applied in the near future.

Promptly release national reserve goods in accordance with regulations to ensure social security, especially in areas affected by natural disasters, storms, and floods, to prevent people from going hungry during the Lunar New Year and border periods. .

In addition, improve the quality and efficiency of state budget revenue, ensure correct, complete, and timely collection, exploit available and potential revenue sources, expand the collection base, and prevent tax loss, especially for food service businesses, night-time economic activities, online businesses, business activities on cross-border platforms, etc.

- Continue to strengthen the management and use of electronic invoices for petroleum business and retail activities in accordance with the Prime Minister's instructions in Official Telegrams No.: 1123/CD-TTg in 2023, 1284/CD-TTg in 2023.

Coordinate with the Ministry of Industry and Trade to direct functional forces to strictly handle units and stores that intentionally violate and fail to comply with regulations on electronic invoices; in cases of necessity, revoke licenses and certificates of business conditions according to the provisions of law.

- Drastically and effectively deploy tasks and solutions under the Prime Minister's direction in Directive 01/CT-TTg, thoroughly cutting and saving state budget expenditures in 2024, especially regular expenses, expenses that are not really urgent to increase development investment expenses, salary deductions, and perform social security spending tasks. Strictly control overspending, public debt, government debt, and foreign debt within prescribed limits.

- Urgently review and synthesize issues related to the abolition of specific financial mechanisms to report to competent authorities for consideration and decision in accordance with the Prime Minister's direction in Decision 1600/QD-TTg in 2023, ensuring synchronous implementation of the new salary policy from July 1, 2024.

- Focus on implementing tasks and solutions to upgrade Vietnam's stock market from frontier market to emerging market as soon as possible to attract foreign investment capital and investment funds according to the direction of the Prime Minister in Official Telegram 1360/CD-TTg in 2023.

- Urgently complete the draft Decree amending, supplementing, (or replacing) the Government's Decrees on transforming state-owned enterprises and a one-member limited liability company with 100% charter capital invested by a state-owned enterprise into a joint stock company; on state capital investment in enterprises and management and use of capital and assets at enterprises according to the direction of Deputy Prime Minister Le Minh Khai in document 10038/VPCP-DMDN in 2023, submitted to the Government in the first quarter of 2024; submit to the Government a draft Decree amending Points 17 and 22, Article 2 of Decree 140/2020/ND-CP according to the direction of Deputy Prime Minister Le Minh Khai in Notice 206/TB-VPCP 2023 of the Government Office.

- Research, develop and submit to the Government in March 2024 a draft Decree regulating the preparation of estimates for the management and use of regular state budget funds to implement construction investment projects, renovation, upgrading, and expansion of already invested construction projects; property procurement; and the purchase, repair, and upgrade of equipment and machinery in accordance with the order, procedures, and regulations of the Law on Promulgation of Legislative Documents 2015 to promptly implement the conclusions of the National Assembly Standing Committee in the Notice 3307/TB-TTKQH in 2024.

- Report to the Government in February 2024 on the plan to allocate sources of increased central budget revenue in 2023, focusing on key and important national projects, ensuring sources of salary reform, and implementing social security policies.

- Focus on completing the draft project for establishing and developing a carbon market in Vietnam, reporting to Deputy Prime Minister Tran Hong Ha before February 28, 2024, according to the direction in Notice 09/TB-VPCP in 2024.

- Develop and promulgate a Circular guiding the management mechanism and use of state budget funds to implement the Program to support private sector enterprises with sustainable business in the period 2022–2025, according to Decision 167/QD-TTg 2022 of the Prime Minister.

- Preside and coordinate with the State Bank of Vietnam, Government Office, Ministry of Health, Ministry of Education and Training, Ministry of Labor, War Invalids and Social Affairs, ministries and localities, relevant agencies to guide the standardization of revenue data (fees, fees, hospital fees, tuition, etc.), online checking, and refund of financial obligations collected in the implementation of administrative procedures and public services paid into the state budget; completed in the first quarter of 2024.

Nguyen Ngoc Que Anh

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