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04/01/2026
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Source: Internet

On December 10, 2025, the National Assembly officially passed the draft amended Law on Personal Income Tax ("2025 PIT Law"), expected to take effect on July 1, 2026, including the following prominent highlights.

1. Adjustment of the Progressive Tax Scale

From July 1, 2026, the progressive tax scale is officially simplified from 7 brackets to 5 brackets, widening the gaps between brackets. The lowest tax rate of 5% applies to monthly taxable income up to 10 million VND, and the highest rate of 35% applies to monthly taxable income over 100 million VND (instead of 80 million VND under current law).

Tax BracketAnnual Taxable Income (Million VND)Monthly Taxable Income (Million VND)Tax Rate (%)
1Up to 120Up to 105
2Over 120 to 360Over 10 to 3010
3Over 360 to 720Over 30 to 6020
4Over 720 to 1200Over 60 to 10030
5Over 1200Over 10035

2. Adjustment of Personal Tax Relief Levels

The amended Law on Personal Income Tax specifies that the "deduction for the taxpayer is 15.5 million VND/month (186 million VND/year)" and the "deduction for each dependent is 6.2 million VND/month." These are also the levels stipulated in Resolution 110/2025/UBTVQH15 of the National Assembly Standing Committee, which takes effect on January 1, 2026.

Based on price fluctuations and taxpayer income, the Government will submit to the National Assembly Standing Committee for regulations on personal tax relief levels appropriate to the socio-economic situation in each period. The determination of tax relief for dependents follows the principle that each dependent is only counted for relief once for one taxpayer.

3. Addition of Tax-Exempt Income Items

According to regulations, the new PIT Law will include many tax-exempt income items. Among these are: income from transferring, inheriting, or receiving real estate as gifts; income from transferring a residence or land use rights if the individual owns only one house or plot of land; income from the value of land use rights assigned by the State; income of households and individuals directly producing agricultural products such as crops, livestock, aquaculture, or unprocessed/simply processed salt production; etc. Additionally, the Law specifies tax exemptions for interest from Government bonds, municipal bonds, and bank deposits; overseas remittances; night work and overtime pay; pensions; and scholarships.