Revenue from personal income tax in 2024 is estimated at about 189,000 billion VND, exceeding the yearly estimate of about 30,000 billion, according to the General Department of Taxation.
This year, the financial industry expects revenue from personal income tax to be about 160,000 billion VND. But according to information from the General Department of Taxation (Ministry of Finance), the estimated revenue from personal income tax for the whole year is 189,000 billion VND, up 20% over the same period last year (157,000 billion VND).
Thus, compared to the year’s plan, personal income tax reached 118.7% of the estimate, equivalent to exceeding 30,000 billion VND. This result is explained by the tax industry due to many revenue management measures such as guiding taxpayers, preventing loss of revenue in business, and transferring real estate. Tax authorities also have many solutions to exploit additional sources from digital business, e-commerce, affiliate marketing, online business individuals, livestream sales…
Last year, business households and individuals paid taxes of 25,900 billion VND, equal to 120% of the revenue in 2023 (21,639 billion VND). Of which, income from individual production and business was VND 7,987 billion, an increase of 15%. Revenue from property rental increased by 17%, about VND 3,235 billion.
Personal income tax includes taxes from salaried employees (mainly) and business individuals. This is one of the three pillar taxes of the budget, besides corporate income tax and value added tax (VAT). By the end of 2024, this tax revenue accounts for about 9.5% of total budget revenue, significantly higher than 5.33% in 2011.
However, the family deduction in the personal income tax calculation (VND 11 million and dependent deduction of VND 4.4 million) has been maintained since July 2020 and the progressive tax schedule is considered outdated. Inadequacies when spending, life is increasingly expensive. The Ministry of Finance acknowledges that many provisions of the Personal Income Tax Law need to be amended in accordance with socio-economic development, reducing the burden on taxpayers.
Therefore, in the proposal to amend this law in November 2024, the Ministry proposed adjusting the partially progressive tax schedule in the direction of reducing the number of steps and widening the income gap. They also believe that the regulations on family deductions need to be reviewed and amended to suit new conditions.
Currently, the whole country has nearly 725,000 organizations and individuals doing business on e-commerce platforms, with a total transaction value of more than 75,000 billion VND, according to data from 439 platforms provided to tax authorities. Tax revenue from this field has continuously increased over the past 3 years. Specifically, last year’s revenue was about 116,000 billion VND, a significant increase compared to the 83,000 – 97,000 billion VND recorded in the previous two years.
In addition, tax authorities also tightened management of revenues from foreign suppliers. There are currently 123 foreign suppliers registering for tax through the electronic information portal. Cumulatively since March 2022 – the time the electronic information portal for foreign suppliers operated, foreign businesses have paid about VND 20,000 billion. Among them, Meta group (Facebook), Google, Microsoft, TikTok, Netflix, Apple… hold about 90% of the market share of cross-border e-commerce service revenue in Vietnam.
2024 is also the year the tax industry records a record in state budget revenue, exceeding 1.7 million billion VND. With this progress, including the 2025 estimate, budget revenue for the 5-year period could reach over 9 million billion VND, exceeding 0.7 million billion VND compared to the target assigned by the National Assembly.