Law on Personal Income Tax approved
VGP - Lawmakers on Wednesday approved the revised Law on Personal Income Tax (PIT), scheduled to take effect from July 1, 2026.
The new law represents a significant overhaul of the current 2007 legislation (amended in 2012 and 2014) to better align with contemporary economic realities and international practices.
Key amendments
The the annual tax-exempt revenue threshold for business households shall be increased to VND 500 million (over US$18,000) from current VND200 million. This means around 2.3 million household businesses shall shall not be subject to revenue tax.
PIT also raises family deductions. Accordingly, deduction for taxpayers shall increase to VND 15.5 million per month per dependent (VND 186 million annually), a significant rise from the current VND 11 million.
The progressive tax schedule for income from salaries and wages has been streamlined from current seven brackets to five. The top statutory rate remains at 35 percent, but the income threshold for this top bracket is raised to monthly income above VND 100 million (up from the current VND 80 million).
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| Cột 3 | Cột 4 | Cột 5 | Cột | ||||
|---|---|---|---|---|---|---|---|---|---|
Up to VND10 million (Up to US$400) | 5% | ||||||||
Over VND10-30 million (Over US$400 to US$1,200) | 15% | ||||||||
Over VND 30-60 million (Over US$1,200 to US$2,400) | 25% | ||||||||
Over VND 60-100 million (Over US$2,400 to US$4,000 | 30% | ||||||||
Over VND 100 million (Over US$4,000) | 100% |
