Vietnam proposes simplified 5-tier personal income tax system

HANOI, Sept. 5 (Xinhua) -- Vietnam's Ministry of Finance has proposed a draft amendment to the personal income tax law, planning to reduce the current seven-tier tax bracket structure to five tiers, local media VNExpress reported Friday.

Under the draft proposal, the lowest personal income tax rate of 5 percent would apply to monthly taxable income up to 10 million Vietnamese dong (about 382.3 U.S. dollars), an increase from the current threshold of 5 million dong (about 191 U.S. dollars).

Meanwhile, the top marginal rate of 35 percent would only apply to monthly taxable income reaching 100 million dong (about 3,822 U.S. dollars), compared to the current threshold of over 80 million dong (about 3,058 U.S. dollars).

The ministry said the new proposal, accompanied by increased personal and dependent deductions as well as other eligible exemptions, would reduce the tax burden for low- and middle-income earners.

According to data from the National Statistics Office in 2024, Vietnam's average income per capita is 5.4 million dong (about 206.3 U.S. dollars). Enditem