According to the Government's Submission, the Draft Law on Personal Income Tax (PIT) amended includes 04 Chapters and 29 Articles, regulating taxpayers, taxable income, tax-exempt income, tax reduction and the basis for calculating PIT.
The draft Law amends regulations on family deductions and deductions for charitable and humanitarian contributions.
Minister of Finance Nguyen Van Thang said that on October 17, 2025, the National Assembly Standing Committee passed a Resolution on adjusting the family deduction level of personal income tax.
Accordingly, the deduction for taxpayers will be adjusted from 11 million VND/month to 15.5 million VND/month, the deduction for dependents will be adjusted from 4.4 million VND/month to 6.2 million VND/month and the new family deduction will be implemented from the time the Resolution takes effect and will be applied from the tax calculation period in 2026. Accordingly, individuals will be deducted according to the new family deduction level from January 2026.
The draft law to adjust the progressive tax table in part applies to individuals residing with income from salaries and wages in the direction of reducing the tax rate from 7 to 5 levels and expanding the gap between levels.
The plan is submitted to the National Assembly as follows:
Amend the Tax Plan to 5 levels with the gap between gradually increasing levels of 10, 20, 30, 40 million VND and tax rates of 5%, 15%, 25%, 30%, 35%. The final tax rate is 35% applied to taxable income over VND 100 million/month.
According to calculations, along with adjusting the new family deduction level, this tax rate adjustment plan reduces revenue by about VND 27,400 billion/year.
According to this plan, most of the mobilization tax rates will be reduced compared to the current one. However, based on the review opinions and discussions in groups and halls of National Assembly deputies, the Government will study the whole and have additional thorough assessments to ensure reasonableness, and report to the National Assembly for consideration.
In addition, the draft Law also adjusts the income threshold to determine taxable income for some amounts of income such as income from winning prizes, from copyrights, from commercial franchises, from inheritance and gift receipt from 10 million VND to 20 million VND; Adjusting some words and the time of determining taxable income to ensure clarity in implementation, implementation, etc.
