Prior to proposing amendments, Vietnam’s Finance Ministry has asked provincial authorities and enterprises to report difficulties in implementing the personal income tax law.

The ministry will compile a report in the first quarter of 2011 and submit a proposal of amendments to the National Assembly, the country’s legislative body.

The law was approved by the National Assembly in late 2007 and went into effect on January 1, 2009.

It sets a taxable income threshold at VND4 million per month. It allows taxpayers to deduct VND1.6 million for each dependant.

But in the context of higher consumer prices, many people have been saying that taxable income levels should be higher and dependant deductions should be raised as well.

Finance Minister Vu Van Ninh told Thanh Nien that amending the law would take time and the ministry will consider the current economic situation before making any changes.