This morning, the National Assembly heard Finance Minister Nguyen Van Thang, authorized by the Prime Minister, present the draft amendment of the Personal Income Tax Law.

One of the notable new proposals is a personal income tax of 0.1% on gold bullion transfers.

According to Minister Nguyen Van Thang, the revised law adds several new sources of income subject to taxation, including earnings from the transfer of Vietnam's national domain name “.vn”, license plate auction transfers, digital asset transfers, and gold bullion transfers.

For gold bullion transactions, the proposed 0.1% tax rate aims to improve market transparency and curb speculation. The government will define the taxable value threshold, effective date, and tax rate adjustments in alignment with its roadmap for managing the gold market.

The proposal notes that gold bullion trading is a conditional business activity. Only enterprises and credit institutions licensed by the State Bank of Vietnam may legally trade in gold bullion. Any trading activity without such a license is a legal violation.

Therefore, individuals are not permitted to trade gold bullion commercially. If they do so and earn income, it is classified as “other income” rather than business income.

Presenting the assessment of the bill, Phan Van Mai, Chair of the Economic and Financial Committee, shared that several opinions recommend caution in applying the tax on gold bullion transfers, especially for individuals whose transactions are not driven by speculative or commercial intent.

“Taxing gold-based savings may lack social and economic sensitivity,” the committee stated, urging the government to clarify the intended timeline for implementing this regulation.

Clear regulations needed for family deductions

Beyond the gold-related tax, the draft law also proposes revisions concerning family deduction thresholds and the progressive tax bracket structure.

Minister Thang stated that on October 17, 2025, the National Assembly Standing Committee approved a resolution to adjust the personal and dependent deductions. Under the resolution, personal deductions will rise from 11 million VND to 15.5 million VND (approximately 620 USD) per month, and dependent deductions from 4.4 million VND to 6.2 million VND (approximately 176 USD to 248 USD) per month.

These deductions will be periodically adjusted by the government based on price changes and income levels.

The draft also proposes reducing the number of progressive tax brackets for individuals earning wages or salaries from seven to five. The income ranges between brackets would be 10, 20, 30, and 40 million VND, with corresponding tax rates of 5%, 15%, 25%, 30%, and 35%. The highest rate of 35% would apply to monthly taxable income exceeding 100 million VND (approximately 4,000 USD).

However, the Economic and Financial Committee cautioned that the new bracket structure could create tax disparities. Some income groups might end up paying more tax than under the current law, while others pay less, creating concerns over tax fairness among income groups.

Regarding the authority to adjust family deductions, the committee emphasized that such provisions directly affect taxpayers’ obligations and must comply with the constitutional principle that state budget revenue and expenditure must be stipulated by law.

As such, most committee members recommended that the law should explicitly state the deduction thresholds for both personal and dependent allowances, following the current Personal Income Tax Law.

Additionally, it should define the government’s authority to propose adjustments to the Standing Committee of the National Assembly in response to price fluctuations or changes in the country’s socio-economic conditions.

The revised Personal Income Tax Law is expected to take effect on July 1, 2026. However, regulations related to individual business income, progressive tax brackets, and income from wages and salaries will come into force earlier, on January 1, 2026, coinciding with the new family deduction rates.

Thanh Hue