New benefits of taxpayers from July 1, 2026

The Personal Income Tax Law 2025 takes effect from July 1, 2026, except for regulations related to income from business, from salary and wages of resident individuals applied from the tax period in 2026.

First of all, the family deduction is significantly increased. Accordingly, taxpayers are entitled to a deduction of 15.5 million VND/month (equivalent to 186 million VND/year), while the deduction for each dependent is 6.2 million VND/month. At the same time, the Government is assigned the authority to adjust the flexible family deduction level on the basis of fluctuations in the price index and actual income in each period.

Regarding the tax calculation method, the partial progressive tax schedule for income from wages and wages is shortened from 07 places to 05 places, with the tax rate from 5% to 35%. The simplification of the tax schedule contributes to facilitating tax calculation, and at the same time ensures transparency and ease of application.

For the deductions when determining taxable income, in addition to family deductions and compulsory insurance, the taxpayer is entitled to supplement the right to deduct valid expenses for health and education – training of himself and his dependents, provided that there are complete invoices and vouchers according to regulations.

For business households and individuals, the tax calculation mechanism is adjusted in a more flexible direction. In case the revenue does not exceed the threshold prescribed by the Government, there is no obligation to pay PIT. In case of exceeding the threshold, the tax is determined according to actual income or ratio on revenue depending on the business sector.

The Personal Income Tax Law has also added a number of new taxable incomes such as income from the transfer of digital assets, gold bars, results of reducing greenhouse gas emissions, carbon credits and winning license plates. At the same time, expand the tax exemption area for some incomes from science and technology activities, commercialize research results, invest in innovative start-ups, green bonds and transfer carbon credits for the first time.