1. IntroductionThe personal income

1. Introduction
The personal income tax is a kind of tax emerged from hundred years ago, has applied commonly in
most countries around the world so far. From the objective reality shows that the application of the personal
income tax occurs in two trends: firstly, if the personal income tax burden were reasonable, it would be
likely to stimulate economic growth and increased the state budget revenues; secondly, if the personal
income tax burden were excessive, reverse effects would be likely to appear. From the changes of practice,
the developed countries as well as developing countries must conduct the reform process of the personal
income tax law to suit to the fluctuations of the socio-economic situation. Vietnam and China also have
selected and applied this tax law, however, the application of two countries is not the same from the number
of the reforms to the contents and implementation efficiency of the tax law. The question is what are the
special differences between the current personal income tax law of two countries? Which tax law has more
scientific and practical level? Which Nation apply the personal income tax more efficiently?
The purpose of this paper will focuss on analyzing the difference of the personal income tax regime
between Vietnam and China through the basic contents as taxpayers, taxable incomes, exemption-reduction
tax, tax rate, tax reduction method for taxpayers, family circumstances deduction, tax burden, impacts of the
changes in CPI and GDP per capita, and effectiveness of the enforcement of the tax law etc. From these
analyses, the authors will draw out lessons on policy for Vietnam’s reference on future tax reforms.