News
On the 2nd of June 2020 the Standing Committee of the National Assembly passed Resolution No. 954/2020/UBTVQH14 adjusting the Personal Income Tax reduction based on family circumstances.
This new Resolution supersedes article 4 of Law No. 26/2012/QH13 on Personal Income Tax, and from the 1st of July 2020, the day on which it will take effect, it shall raise family circumstance-based PIT reduction calculation.
The previous Law No. 26/2012/QH13 on Personal Income Tax introduced a reduction of the tax base for the calculation of the PIT based on family circumstances in the two following ways:
Thanks to Resolution No. 954/2020/UBTVQH14, the PIT reduction has raised in the following way:
This reduction of the tax base for the PIT calculation is a significant gesture in the face of the difficult economic situation caused by the Covid-19 pandemic. This is a positive move of the State to support and share the burden with taxpayers. This Resolution will enable taxpayers to factually increase their incomes, and it will encourage them to reinvest in business and production activities, and it is expected that it will increase tax contributions on the long term.