On the morning of December 10, 2025, during the 10th Session, the 15th National Assembly officially passed the amended Law on Personal Income Tax (PIT) with a high approval rate. This is a significant legal milestone, marking major changes in tax policy to better align with the current socio-economic situation.
Crowe Vietnam presents a summary of the notable points of the Law on Personal Income Tax 2025 and the legal framework applicable to the 2025 fiscal year.
Highlights of the Law on Personal Income Tax 2025 (Effective from Jan 01, 2026)
Based on the approved draft Law, Crowe Vietnam summarizes the 05 largest changes directly impacting taxpayers:
1. Adjustment of Family Deduction Levels
According to Resolution 110/2025/UBTVQH15, the new family deduction levels applicable from 2026 have been significantly increased:
- Deduction for the taxpayer: 15.5 million VND/month (equivalent to 186 million VND/year).
- Deduction for each dependent: 6.2 million VND/month.
Impact: Individuals with no dependents who have income from salaries and wages exceeding 15.5 million VND/month will now begin to pay tax.
This point is effective from January 1, 2026
2. Reduction of Tax Rates in the Partially Progressive Tax Tariff
The new tax tariff has been revised to reduce the tax burden on employees, specifically:
- Tax bracket 2 reduced: From 15% to 10% (for taxable income over 10 to 30 million VND/month).
- Tax bracket 3 reduced: From 25% to 20% (for taxable income over 30 to 60 million VND/month).
Specifics are as follows:
| Tax Bracket | Taxable Income/Year (million VND) | Taxable Income/Month (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 |
This point is effective from January 1, 2026
3. Increasing the Tax-Exempt Revenue Threshold for Business Households
The new Law strongly adjusts the revenue threshold subject to tax for individuals and business households:
- Raising the non-taxable revenue threshold from 200 million VND/year to 500 million VND/year.
- Synchronously adjusting the non-taxable revenue threshold for Value Added Tax (VAT) to a corresponding 500 million VND.
- (Note: previously, the Law on VAT 2024 stipulated a level of 200 million VND/year effective from 2026; however, the latest Law on PIT 2025 has raised this level to 500 million VND).
This point is effective from January 1, 2026
4. New Tax Calculation Method for Medium-Scale Business Households
For business households and individuals with revenue from over 500 million VND to 3 billion VND/year, the Law adds a method to calculate tax on income with a tax rate of 15% (similar to the Corporate Income Tax rate for small enterprises). Individuals have the right to choose to calculate tax based on a percentage of revenue or based on income.
This point is effective from January 1, 2026
5. Application of Tax on Gold Transfers
The draft Law stipulates PIT on gold bullion transfer transactions with a tax rate of 0.1% on the transfer price per occurrence. The Government will specify value thresholds to exclude small, accumulated transactions not intended for business purposes.
This point is effective from July 1, 2026.
