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Income tax should be amended this year: Experts
It is now time to make amendments to the law on personal income tax, experts told Tuoi Tre.
Taxpayers have complained the taxable threshold, deductions for dependents, and other related regulations as prescribed in the law are all outdated considering rising costs at the moment.
It is high time the law was amended, Dinh Xuan Thao, Director of the National Assembly’s Institute for Research on Legislation, said, adding the government will need to wait for an NA resolution before it can make any adjustments.
It even takes the legislative body merely one meeting to pass such a resolution, Thao said, further explaining revisions of the law will not take much time as only tax rates will be adjusted.
He believed the law can definitely be revised within this year and noted its terms governing deductions and tax rates should be considered so that they will be easily modified to suit a future situation.
Many had argued prior to the introduction of the law that any rigid provisions would not last for so long because the country’s economic conditions would frequently change over time, he said.
He suggested not fixing tax rates, specifically the personal deduction rates, because they may not be suitable any longer at some time in the future, which then may lead to another adjustment.
A law should not be continuously adjusted at the end of the day, Thao warned.
He highly appreciates the suggestion that a new taxable income threshold should be calculated against domestic firms’ minimum salary, which will automatically raise the threshold if there is any hike in the minimum salary.
Vietnam’s competent bodies should have earlier proposed modifications to the current VND4 million taxable income threshold, Nguyen Minh Phong, of the Hanoi Institute For Socio – Economic Development Studies, remarked.
Phong thought a quick decision should be made because tax adjustments will bring taxpayers more of a mental encouragement than of any economic relief at this difficult time.
He also complained tax rebate formalities are too complicated at the moment.
Phong reckoned that deductions for dependents should be lifted up and tax authorities should also issue tax codes for the dependents for regulatory purposes.
A revision to the law on personal income tax should be encouraged because it follows instructions recently given by the government, he concluded.
The law should be revised in this year to timely meet taxpayers’ expectations, according to Dang Van Thang, Chairman of the Vietnam Association of Accountants and Auditors.
The ball is now in the court of the government and the Ministry of Finance, he observed.
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