Abstract
Individual income tax revenue accounts for a high proportion of Vietnam's total tax revenues. The purpose of the article is to study the factors affecting individual income tax revenue in Vietnam. The findings show that there are three factors to be the strongest impact on the individual income tax revenue including GDP at current prices, individual income tax burden and inflation. Based on the empirical results, the article proposes some policy implications that can increase the individual income tax revenue without exceeding the people's endurance.
Highlights
The individual income tax was applied hundreds of years ago, in present it has become one of the most commonly taxes was applied in most countries in the world
In Vietnam, this tax has been applying for many years, but from 2008 and earlier applied the individual income tax ordinance, unsecured perfection level, executable apparatus not yet been professional, economic transactions mainly be paid in cash, tax evasion and some other reasons, the individual income tax revenues was lost
Vietnam's individual income tax revenue during 2002 2011, the results showed that when GDP at current price is an increase of 1 billion VND, the individual income tax revenue will increase to 0.020162 billion VND (Nguyen Huu Cung et al, 2013)
Summary
The individual income tax was applied hundreds of years ago, in present it has become one of the most commonly taxes was applied in most countries in the world. If the individual income tax burden is reasonable may both stimulate economic growth and increase the state budget revenue. In Vietnam, this tax has been applying for many years, but from 2008 and earlier applied the individual income tax ordinance, unsecured perfection level, executable apparatus not yet been professional, economic transactions mainly be paid in cash, tax evasion and some other reasons, the individual income tax revenues was lost. After moved from the Ordinance to the Law, perfection and professionalism be improved, the types of income that be not previously included in the Ordinance be adjusted in the Law, from which the revenue was be increased quickly
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