Noteworthy points of the Personal Income Tax (PIT) Law amended in 2025

The revised Personal Income Tax (PIT) Law 2025 (approved by the National Assembly on December 10, 2025) is one of the most anticipated laws because of its direct impact on the pockets of tens of millions of workers and business households.

Below is a summary of the new “landmark” points of this Law:

1. Strongly increase the level of family deductions

This is the most important change to offset price inflation (CPI) and improve people’s lives. The new deduction level will be applied for the tax period from January 1, 2026:

– For taxpayers themselves: Increased from 11 million VND to 15.5 million VND/month (186 million VND/year).

– For dependents: Increased from 4.4 million VND to 6.2 million VND/month.

Table comparing starting income to pay tax (after deducting social insurance):

| Number of dependents | Old level (until the end of 2025)| New level (from 2026) |

| There is no                 | > 11 million VND/month         | > 15.5 million VND/month |

| 1 person                    | > 15.4 million VND/month      | > 21.7 million VND/month |

| 2 people                    | > 19.8 million VND/month      | > 27.9 million VND/month |

2. Shorten the progressive tax schedule (From 7 levels to 5 levels)

To simplify and reduce the burden on the middle income group, the partially progressive tax schedule has been redesigned. The reduction from 7 to 5 steps helps workers easily calculate and reduce the amount of tax payable at the middle income “segments”.

Highest level (35%): Only applies to taxable income over 100 million VND/month (instead of over 80 million VND as before).

3. “Relaxation” for Business Households and Individuals

Law 2025 brings 3 great news for small business groups:

– Raising the tax-free revenue threshold: Business households with a revenue of less than 500 million VND/year will be completely exempted from personal income tax and VAT (previously this threshold was only 100 million, then 200 million was proposed, but the final version is 500 million).

– More fair tax calculation: Allow business households to deduct the threshold of 500 million before multiplying the tax rate (For example: Revenue of 600 million will only calculate tax on the excess 100 million).

– Choose tax calculation method: Business households with revenue under 3 billion VND/year have the right to choose to pay 1.5% tax on revenue OR 15% on profit (same as businesses).

4. 𝙌𝙪𝒂̉𝙣 𝙡𝒚́ 𝙩𝙝𝙪 𝙣𝙝𝒂̣̂𝙥 𝙩𝒖̛̀ 𝙏𝒂̀𝙞 𝙨𝒂̉𝙣 𝙨𝒐̂́ 𝙫𝒂̀ 𝙆𝙞𝙣𝙝 𝙙𝙤𝙖𝙣𝙝 𝙨𝒐̂́

– Digital asset tax: For the first time, the law officially includes income from digital asset transactions (digital assets) as taxable to fill the revenue loss gap.

– Synchronized with the Law on Tax Administration: Payment of personal income tax to sellers on Shopee and TikTok Shop will be automatically deducted by the floor at 1.5% and paid on their behalf, individuals do not need to declare themselves monthly.

5. 𝘽𝒐̂̉ 𝙨𝙪𝙣𝙜 𝙘𝒂́𝙘 𝙠𝙝𝙤𝒂̉𝙣 𝙘𝙝𝙞 𝙥𝙝𝒊́ dd𝒖̛𝒐̛̣𝙘 𝙜𝙞𝒂̉𝙢 𝙩𝙧𝒖̛̀ 𝙢𝒐̛́𝙞

– The law paves the way for reducing the actual costs that people have to bear:

– Proposal to allow deductions for dependents’ critical medical expenses and university tuition fees (if there are valid invoices and documents).

– Raise the taxable threshold for income from copyright, inheritance, and gifts to a level exceeding 20 million VND/time (instead of 10 million VND).

𝑳𝒐̣̂ 𝒕𝒓𝒊̀𝒏𝒉 𝒂́𝒑 𝒅𝒖̣𝒏𝒈 𝒕𝒉𝒖̛̣𝒄 𝒕𝒆̂́

– From July 1, 2025: The law takes general effect.

– Tax finalization period 2025 (implemented in early 2026): Old deduction levels still apply (11 million and 4.4 million).

– From January 1, 2026: Officially apply the new deduction levels (15.5 million and 6.2 million) to the monthly payroll.

𝗟𝘂̛𝘂 𝘆́: If you have personal income tax debt, please settle it before January 1, 2025 to avoid being automatically placed on exit suspension by the system according to the new regulations of the Law on Tax Administration.