Personal Income Tax to Undergo Significant Changes
Individuals Earning Up to 17 Million VND/Month Exempt from Personal Income Tax Starting 2026
High-Profile Tax Evasion Cases: Costly Legal Lessons for the Wealthy
Amended Personal Income Tax Law Effective from July 1, 2026
On December 10, 2025, the National Assembly passed the amended Personal Income Tax Law, along with adjustments to the Tax Administration Law, set to take effect on July 1, 2026. Key updates include:
Increased Tax Exemption Threshold for Individuals and Households to 500 Million VND/Year
The tax-exempt revenue threshold for individuals and households has been raised from 200 million VND/year to 500 million VND/year, with this amount deducted before applying the tax rate on revenue.
The VAT exemption threshold has also been adjusted to 500 million VND/year.
Tax Calculation Based on Actual Income for Individuals and Households
For individuals and households with annual revenue between 500 million VND and 3 billion VND, the new law introduces a tax calculation method based on income (revenue minus expenses), with a 15% tax rate similar to that for small businesses.
Taxpayers in this category can choose between the revenue-based tax rate or the income-based method.
Revised Progressive Tax Brackets for Income from Salaries and Wages
The progressive tax brackets have been reduced from 7 to 5, with wider intervals and adjusted intermediate tax rates. The 15% rate in bracket 2 has been lowered to 10%, and the 25% rate in bracket 3 to 20%.
| Tax Bracket | Annual Taxable Income (Million VND) | Monthly Taxable Income (Million VND) | Tax Rate (%) |
|---|---|---|---|
| 1 | Up to 120 | Up to 10 | 5 |
| 2 | Over 120 to 360 | Over 10 to 30 | 10 |
| 3 | Over 360 to 720 | Over 30 to 60 | 20 |
| 4 | Over 720 to 1,200 | Over 60 to 100 | 30 |
| 5 | Over 1,200 | Over 100 | 35 |
2% Tax on Real Estate Transfers
The tax on real estate transfers is calculated as 2% of the transfer value.
The taxable income from real estate transfers is determined at the time the transfer contract takes effect or when the land use right or property ownership is registered.
0.1% Tax on Gold Bullion Transfers
The tax on gold bullion transfers is set at 0.1% of the transfer value per transaction.
Gold Bullion Transfer Tax = 0.1 × Transfer Value
The government will set the tax threshold, application timing, and adjust the tax rate in line with the gold market management roadmap.
2. Increased Family Circumstance Deductions from January 1, 2026
Under Resolution 110/2025/UBTVQH15, the deductions are adjusted as follows:
– Deduction for the taxpayer: 15.5 million VND/month (186 million VND/year).
– Deduction for each dependent: 6.2 million VND/month.
These changes take effect from January 1, 2026, and apply to the 2026 tax year. Compared to the current deductions of 11 million VND/month for taxpayers and 4.4 million VND/month for dependents, the new amounts reflect a 40% increase, aligning with average income and GDP growth from 2020 to 2025.
3. Increased Special Consumption Tax on Alcohol and Beer from January 1, 2026
The 2025 Special Consumption Tax Law, effective from January 1, 2026, introduces a phased increase in taxes on alcohol, beer, sugary drinks, and tobacco:
|
Date |
Tobacco |
Alcohol ≥ 20° |
Alcohol < 20° |
Beer |
Sugary Drinks (≥ 5g/100ml) |
|
1.1.2026 |
65% |
35% |
65% |
||
|
1.1.2027 |
2,000 VND/pack |
70% |
40% |
70% |
8% |
|
1.1.2028 |
4,000 VND/pack |
75% |
45% |
75% |
10% |
|
1.1.2029 |
6,000 VND/pack |
80% |
50% |
80% |
|
|
1.1.2030 |
8,000 VND/pack |
85% |
55% |
85% |
|
|
1.1.2031 |
10,000 VND/pack |
90% |
60% |
90% |
Continued Reduction of Environmental Protection Tax on Fuel and Lubricants in 2026
Under Resolution 109/2025/UBTVQH15, the environmental protection tax on fuel and lubricants (except aviation fuel) will remain at 50% of the 2025 rate throughout 2026.
Specifically, Article 1 of the resolution sets the following tax rates from January 1, 2026, to December 31, 2026:
| No. | Product | Unit | Tax Rate (VND/Unit) |
|---|---|---|---|
| 1 | Gasoline (excluding ethanol) | Liter | 2,000 |
| 2 | Aviation Fuel | Liter | 1,500 |
| 3 | Diesel | Liter | 1,000 |
| 4 | Kerosene | Liter | 600 |
| 5 | Mazut | Liter | 1,000 |
| 6 | Lubricating Oil | Liter | 1,000 |
| 7 | Lubricating Grease | Kg | 1,000 |
From January 1, 2027, the tax rates will revert to those specified in Resolution 579/2018/UBTVQH14 unless further reductions are enacted.
5. Extension of Agricultural Land Use Tax Exemption Until 2030
Resolution 216/2025/QH15 extends the agricultural land use tax exemption until December 31, 2030. This continues the exemptions provided by previous resolutions (55/2010/QH12, 28/2016/QH14, and 107/2020/QH14), aiming to alleviate the tax burden on agricultural land users.
6. Tax Incentives for Electronics Manufacturers from January 1, 2026
Circular 33/2025/TT-BKHCN, issued by the Ministry of Science and Technology, outlines criteria for electronics manufacturers to qualify for corporate income tax incentives, effective January 1, 2026. Eligible companies must meet at least one of the following criteria:
– Use of domestically produced semiconductor chips
– Engagement in research, technology development, and innovation
– Product design capabilities
– Development of domestic supply chains and technology transfer.
Exciting News for Real Estate Buyers, Sellers, and Landlords
The proposed tax scheme based on real estate trading profits has been officially dismissed, maintaining the fixed rate of 2% on the selling price to streamline administrative procedures.
Small Businesses with Annual Revenue Under 500 Million VND Exempt from Personal Income Tax
The National Assembly has approved an adjustment to the tax-exempt revenue threshold for households and individual businesses, increasing it from 200 million VND per year to 500 million VND per year.
Maximize Your Tax Savings: Claim Up to 4.4 Million VND/Month in Personal Income Tax Deductions on eTax Mobile – Act Now!
Each successfully registered dependent allows workers to deduct up to 4.4 million VND per month (set to increase to 6.2 million VND by 2026) from their taxable personal income.
Still Unsure About Gold Bullion Transaction Taxes?
Distinguishing between gold purchased for speculation, long-term accumulation, or special occasions like weddings can be surprisingly challenging, according to widespread opinion.
Why Not Implement the New Family Deduction Threshold Immediately?
The upcoming personal income tax settlement for this year is scheduled for the end of Q1/2026, sparking anticipation for the immediate application of newly approved deduction rates. However, the Ministry of Finance highlights several inconsistencies arising from this proposed implementation.
