Determinants of revenue of personal income tax in Vietnam

Abstract

Revenue of personal income tax has been accounting for a higher and higher proportion in Vietnam's total tax revenue. The purpose of this article is to combine some different methods to find the causes of this issue. The authors find that the growth rate of this tax depends on economic growth, perfection of tax law, professionalism of the tax authority system and some other factors. In which the increase of GDP/GDP per capita is themost important factor. In addition, the authors also find that the annual average burden of this tax in the applied period of the Ordinance is nearly 2.34 times lower than the applied period of the Law. © 2014 Springer-Verlag Berlin Heidelberg..