Revised law on personal income tax passed
The National Assembly passed amendments and supplements to the Law on Personal Income Tax with a majority of votes on November 22.
Under the revised law, the level at which taxpayers start paying personal income tax will be VND9 million per month, from the current VND4 million, and for each tax payer dependent the threshold will increase from VND1.6 million to VND3.6 million per month.
In the event of the consumer price index rising above 20 percent, or the adjustment of the ‘family circumstances’ income tax threshold is made before the law comes into effect, the Government will ask the National Assembly Standing Committee to adjust the dependents’ exemption level in line with inflation.
The law will come into effect on July 1, 2013.