The National Assembly of Vietnam approved the revised Law on Personal Income Tax on 10 December 2025. The revised Law on Personal Income Tax will come into force on 1 July 2026. However, certain provisions related to income from salaries, wages and business activities will be implemented from 1 January 2026. The key amendments to the Law on Personal Income Tax include:
Simplify Progressive Tax Brackets
The progressive tax rate for income from salaries and wages has been simplified from current seven brackets to five. The lowest rate remains at 5% and the highest rate remains at 35%. But the taxable income for each bracket has been adjusted. The new progressive tax rate for income from salaries and wages will be implemented from 1 January 2026. The specific tax rates are as follows:
NO.
Monthly Taxable Income
Tax Rate
1
Up to VND10 million
5%
2
Over VND10 million, up to
VND30 million
15%
3
Over VND30 million, up to
VND60 million
25%
4
Over VND60 million, up to
VND100 million
30%
5
Over VND100 million
35%
Raise Deductions for Taxpayer and Dependent
From 1 January 2026, the monthly deduction for the taxpayer will be increased to VND15.5 million, while the deduction for each dependent will be increased to VND6.2 million per month.
Increase Taxable Revenue Threshold for Household Business
From 1 January 2026, the annual tax-exempt revenue threshold for household businesses will be increased from the current VND100 million to over VND500 million. Household businesses with annual revenue of VND500 million or less will not be subject to personal income tax.
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