The proposal is included in the dossier for compiling the new PIT law, which has been sent to various ministries, agencies, localities and citizens for feedback.
According to the finance ministry, the regulations exempting PIT on interest income from bank deposits aim to encourage individuals without direct investment needs in production or business to deposit their savings through banks — an important channel in mobilising capital for the economy.
This is also a welfare policy for those unable to work, such as retirees and people with disabilities.
According to the dossier, the finance ministry proposes amendments to regulations that are expected to help reduce tax obligations for taxpayers, ensuring alignment with the general tax policy reform.
Specifically, the law will adjust personal tax deductions for taxpayers in accordance with changes in living standards, price indices, and macroeconomic indicators over the recent period and forecasts for the upcoming period.
The new law will also amend and supplement deductible charitable and humanitarian contributions as well as other specific deductions when determining taxable income; adjust tax rates and income thresholds in the progressive tax brackets; and add provisions on tax exemptions and reductions to implement the Party and State’s policies regarding priority sectors and attracting high-quality human resources for socio-economic development.
Regarding savings interest, the current PIT law stipulates exemptions for income from interest on deposits at credit institutions, life insurance contract interest, government bond interest and pensions.
