The Ministry of Finance is urgently finalising the draft Law on Personal Income Tax to submit to the government. As anticipated, PIT rates could be set at a start level of 5% instead of the current 10%.
According to the tax policy department of the Ministry of Finance, during the drafting of the Law on Personal Income Tax, many authorities said that the government should regulate less tax levels with the lower initial PIT rate than the prevailing rate (about 5%) and the highest progressive tax rate aimed at ensuring the harmonisation amongst benefits of sides. Other income tax types such as incomes from financial investments, capital transfer, property trade and so forth will be issued with reasonable tax rates in order to encourage the development of transactions of these markets.
Authorities also said that the government should expand the list of taxpayers by reducing the threshold rate for Vietnamese tax payees from the current five million dong to an as yet unspecified lower level.
These kinds of income tax will be classified clearly according to each type of taxpayers as individual employees or business households.