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Official Letter 2837/GLA-NVDTPC from the Gia Lai Provincial Tax Department has summarized 10 notable new points of the Law on Personal Income Tax 2025, which takes effect on July 1, 2026 (specifically, regulations related to business income, salaries, and wages of resident individuals will apply starting from the 2026 tax period).
The key new points include:
1. Taxable income (Article 3)
Adding a series of new taxable income streams to align with modern economic activities, including:
- Income from agency, brokerage, and business cooperation activities with organizations.
- Income from e-commerce business and business on digital platforms.
- Remuneration and monetary or non-monetary benefits in any form (under income from salaries and wages).
- Income from the transfer of the “.vn” national domain name.
- Income from the transfer of greenhouse gas emission reduction results and carbon credits.
- Income from the transfer of auctioned license plates.
- Income from the transfer of digital assets and gold bars.
2. Tax-exempt income (Article 4)
Expanding many tax-exempt income streams, specifically:
- Income from dividends of agricultural cooperative members; farmers signing contracts to participate in the “Large-scale field” model, production forest planting, and aquaculture.
- Interest on local government bonds.
- Wages for night shifts, overtime, or wages/remuneration paid for untaken statutory leave days.
- Income paid by supplementary pension insurance funds and voluntary pension funds.
- Income from the initial transfer of carbon credits/emission reductions; income from green bond interest and the initial transfer of green bonds.
- Income of foreign experts working on ODA projects, United Nations agencies, or individuals participating in peacekeeping.
- After-CIT income of owners of sole proprietorships and single-member LLCs.
3. Other tax exemptions and reductions (Article 5)
Adding term-based tax exemption and reduction preferential policies:
- 05-year tax exemption for salary and wage income of high-quality digital technology industry personnel and high-tech research and development personnel.
- Tax exemption for income from the transfer of open-ended fund certificates (established under the securities law) if held for 02 years or more.
- 50% tax reduction on the profit portion distributed to individual investors from securities investment funds and real estate investment funds.
4. Tax on business income of resident individuals (Article 7)
Comprehensively amending the tax calculation methods and tax payment thresholds:
- Non-taxable threshold: Individual businesses with an annual revenue at or below the Government’s prescribed level will not have to pay tax (according to Decree 141/2026/ND-CP, this threshold is 01 billion VND or less, applicable from January 1, 2026).
- Income-based tax calculation method: Applicable to individuals with revenue over 03 billion VND (or revenue above the prescribed threshold who voluntarily register). Formula: Tax = (Revenue – Expenses) x Tax Rate. Tax rates: Revenue up to 03 billion VND (15%); over 03 – 50 billion VND (17%); over 50 billion VND (20%).
- Revenue-based tax calculation method: Applicable to individuals with revenue exceeding the prescribed threshold up to 03 billion VND. Tax is calculated as a percentage (from 0.5% to 5% depending on the industry) multiplied by the revenue portion exceeding the prescribed threshold.
- Real estate leasing: Tax equals the revenue portion exceeding the prescribed threshold multiplied by a 5% tax rate.
5. Partially progressive tax schedule (Article 9)
Amending the tax schedule applied to salaries and wages in a more favorable direction: reducing from 07 brackets down to 05 brackets and widening the income gaps between brackets:
- Bracket 1: Taxable income portion/month up to 10 million VND (5% tax rate).
- Bracket 2: Over 10 million to 30 million VND (10% tax rate).
- Bracket 3: Over 30 million to 60 million VND (20% tax rate).
- Bracket 4: Over 60 million to 100 million VND (30% tax rate).
- Bracket 5: Over 100 million VND (35% tax rate).
6. Family circumstance deductions and other deductions (Articles 10, 11)
- Deduction for the taxpayer: Increased to 15.5 million VND/month (equivalent to 186 million VND/year).
- Deduction for dependents: Increased to 6.2 million VND/month for each dependent.
- New deductions: Expenses for healthcare and education-training of the taxpayer and their dependents will be deducted from income before tax calculation (specific levels to be prescribed by the Government).
7. Tax on income from capital transfer (Article 13)
In cases of capital transfer where the purchase price and related expenses cannot be determined, PIT will be simply calculated as: Transfer price x 2% tax rate. This regulation also applies to non-resident individuals (under Article 23).
8. Timing for determining taxable income from real estate transfers (Article 14)
The time for determining taxable income is the time the transfer contract takes legal effect, or the time of registering the real estate use rights and ownership.
9. Raising the taxable income threshold for certain incomes (Articles 15 – 19)
Raising the income value threshold subject to tax from 10 million VND to 20 million VND for the following categories: Winnings; Royalties; Franchising; Inheritances and gifts; and Other incomes.
10. Tax on other incomes (Articles 19, 27)
Clearly stipulating the tax rates for newly added taxable income streams:
- Applying a 5% tax rate (on the income portion exceeding 20 million VND): For income from the transfer of the “.vn” domain name, the transfer of carbon credits/emission reduction results, and the transfer of auctioned license plates.
- Applying a 0.1% tax rate (on the transfer price): For income from the transfer of digital assets and gold bars.
