Consolidated Document No. 112/VBHN-VPQH on Personal Income Tax Law, dated 20 May 2026, issued by the National Assembly Office, consolidating the Personal Income Tax Law and its effective amending and supplementing laws for unified reference purposes.

1. Application of a 5-tier Progressive Tax Schedule Instead of the 7-tier Schedule

• The applicable tax rates are 5%, 10%, 20%, 30%, and 35%, respectively. The 5% tax rate applies to taxable income of up to VND 10 million per month. The highest rate of 35% applies to the portion of income exceeding VND 100 million per month.

2. Monthly Income of VND 17 Million Is Not Subject to PIT in 2026

• The family circumstance deduction for 2026 has been increased to VND 15.5 million per month (VND 186 million per year) for the taxpayer and VND 6.2 million per month for each dependent.
• Under the new family circumstance deduction threshold, individuals without dependents earning VND 17 million per month (after deducting compulsory insurance contributions) will be exempt from Personal Income Tax from 2026 onwards.

3. Night Shift and Overtime Wages Are PIT-exempt Income

• From 01 January 2026, wages earned from night work, overtime work, and salaries/wages paid for unused annual leave days in accordance with the law shall be exempt from Personal Income Tax.

4. Changes to the PIT Calculation Method for Business Activities in 2026

• Annual revenue of up to VND 1 billion: Exempt from Personal Income Tax.
• Annual revenue exceeding VND 1 billion and up to VND 3 billion (Method 1): PIT = (Revenue – VND 1 billion) × Percentage Rate (rates: 0.5%, 1.5%, 2%, 5%, or 1%, depending on the business sector). Quarterly tax declaration is required, with payment due on the last day of the first month of the following quarter.
• Annual revenue exceeding VND 1 billion and up to VND 3 billion (Method 2): PIT = (Revenue – Expenses) × 15% (excluding real estate leasing activities). Quarterly provisional tax declarations and annual tax finalization are required, with the filing deadline being 31 March of the following year.
• Annual revenue from over VND 3 billion to VND 50 billion: PIT = (Revenue – Expenses) × 17% (excluding real estate leasing activities). Quarterly provisional tax declarations and annual tax finalization are required, with the filing deadline being 31 March of the following year.
• Annual revenue exceeding VND 50 billion: PIT = (Revenue – Expenses) × 20% (excluding real estate leasing activities). Monthly provisional tax declarations and annual tax finalization are required, with the filing deadline being 31 March of the following year.

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