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2026 Updates in Vietnam´s Personal Income Tax Law
- From News from ASEAN - Q1 2026
- Adjustment of progressive tax rates for salary and wage income
- Additional types of income eligible for PIT exemption
- Increase in PIT revenue threshold for individuals and household businesses
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The Office of the National Assembly of Vietnam passed Law No. 109/2025/QH15 on Personal Income Tax (PIT) at the 10th session of the 15th National Assembly on 10 December 2025, amending the current PIT Law. The new law will take effect on 1 July 2026. The regulations related to income from salaries and wages of resident individuals will apply starting from the 2026 tax period.
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Below please find some of the key updates to PIT:
Adjustment of progressive tax rates for salary and wage income
The progressive tax rates have been reduced from 7 levels to 5 levels as follows:
| Level | Assessable Income/Month (million VND) | Tax Rate (%) |
| 1 | < 10 | 5 |
| 2 | > 10 to 30 | 10 |
| 3 | > 30 to 60 | 20 |
| 4 | > 60 to 100 | 30 |
| 5 | > 100 | 35 |
Additional types of income eligible for PIT exemption
Tax exemption income includes wages for night work, overtime wages, salaries and remuneration paid for days on which statutory annual leave is not taken in accordance with the Law.
Increase in the PIT revenue threshold for individuals and household businesses
The annual revenue threshold for PIT exemption applicable to individuals and household businesses has been increased from VND 100 million to VND 500 million.
Increase in family circumstance-based deductions
- Personal deduction: increased from 11 million VND per month (132 million VND per year) to 15,5 million VND per month (186 million VND per year); and
- Dependent deduction: increased from 4 million VND to 6,2 million VND per dependent per month.