Viet Nam to amend personal income tax law
VGP – The Ministry of Finance has put forward five personal income tax (PIT) rates for taxable income in the latest PIT bill.
Under the bill, monthly taxable income is taxed at a progressive rate from 5 percent to 35 percent for a tax resident as in the chart below:
| No. | Current regulations | New bill | ||
| Monthly taxable income (VND) | PIT rate (%) | Monthly taxable income (VND) | PIT rate (%) | |
| 1 | 0-5,000,000 | 5 | 0-10,000,000 | 5 |
| 2 | > 5,000,000-10,000,000 | 10 | > 10,000,000-30,000,000 | 15 |
| 3 | > 10,000,000-18,000,000 | 15 | > 30,000,000-60,000,000 | 25 |
| 4 | > 18,000,000-32,000,000 | 20 | > 60,000,000-100,000,000 | 30 |
| 5 | > 32,000,000-52,000,000 | 25 | Above 100,000,000 | 35 |
| 6 | > 52,000,000-80,000,000 | 30 | ||
| 7 | Above 80 | 35 | ||
The above chart shows that the highest PIT rate would be 35 percent, equivalent to that of regional peers like Thailand, Indonesia and the Philippines.
PIT has been the third biggest source of State budget revenue after value-added tax and corporate income tax.
Viet Nam's GDP per capita reached US$4,700 in 2024, an increase of US$377 from 2023. If the national economy expands 6.5 percent over the next 20 consecutive years, the GDP per capita would be around US$1,500 by 2045 and US$20,000 by 2050./.
