Abolish 20% tax on stock and real estate interest
In the latest draft sent to the Ministry of Justice for appraisal, the Ministry of Finance withdrew the proposal to apply a tax rate of 20% on stock sales interest. Instead, income from stock transfers is still determined by selling price multiplied by a tax rate of 0.1% for each transfer.
For capital transfers, residential and non-resident individuals will still apply a tax rate of 20% on taxable income (selling price minus purchase price and reasonable cost). If the cost and capital cannot be determined, personal income tax is directly calculated at 2% on the selling price.
For real estate, the Ministry of Finance also abandoned the option of collecting 20% on the interest of each transaction. Current regulations continue to be maintained, there are no amendments in this draft. According to the drafting agency, the application of tax on real estate transaction interest is still problematic due to difficulty in determining capital and cost prices, while the data system has not met requirements.
Adding new deductions, raising taxable thresholds for some income items
This draft adds special deductions for health, education and training costs for taxpayers and dependents.
In addition, the taxable income threshold for some income items has also been adjusted. Accordingly, individuals with income from winning prizes, patents, commercial franchises, inheritance, and gifts will pay taxes in excess of 20 million VND instead of 10 million VND as at present. The applicable tax rate is 10% for winning prizes, inheritance, gifts and 5% for commercial copyrights and franchises.
The draft also adds other taxable income groups, including: transfer of national domain name .vn, carbon credits, emission reduction certificates, auctioned license plates, digital assets and some other types of assets prescribed by the Government. The applicable tax rate is 5% on income exceeding 20 million VND for each arising period. In particular, digital assets that are regularly traded on a transparent exchange will apply a tax rate of 0.1% on the transfer price each time.
Abolish contract tax, amend progressive tax rates, increase family deduction levels
According to the policy of abolishing contract tax from January 1, 2026, the Ministry of Finance proposes to add a method of calculating tax on income for residential business individuals with annual revenue exceeding the prescribed level. Income is calculated by tax using revenue minus expenses, multiplied by a tax rate of 17%. This level is similar to the corporate income tax applied to small and medium-sized enterprises with annual revenue of over VND3 billion to VND50 billion.
For individuals with revenue below the prescribed level, the tax calculation method is still based on the rate on revenue as per current law. Along with that, a separate tax rate of 5% is applied to activities providing digital content such as digital music, digital movies, video games, digital advertising.
Regarding the partial progressive tax rate applied to income from wages and wages, the draft proposes to reduce it from 7 levels to 5 levels, the highest level still remains at 35%. The Ministry of Finance proposes two options, in which it submits to the Government for choice of option 2. With this option, individuals with a taxable income of VND 50 million/month or less will receive a tax reduction equivalent to or more than option 1. It is expected that the state budget will reduce revenue by about VND 8,740 billion when applying the new tax table.
Regarding family deductions, the Ministry of Finance plans not to link the deduction with the regional minimum wage, but to apply it uniformly nationwide.
Regarding the family deduction, the Ministry of Finance proposes to apply a rate of 15.5 million VND/month, nearly 3 times higher than the average income per capita and higher than the average income of the highest income group of 20% of the population.
According to the plan, the Ministry of Finance will submit to the Government to submit to the National Assembly the draft Law on Personal Income Tax (amended) at the 10th session of the 15th National Assembly in October 2025. The law is expected to take effect from July 1, 2026.
