Personal Income Tax Law
Reductions except for personal income tax from salaries and wages in 2026
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Many items are reduced except for personal income tax (PIT) from salary and wages in 2026.
Income exempt from personal income tax under the new law
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The amended Law on Personal Income Tax (TNCN) was officially passed by the National Assembly with many notable new points.
Personal income tax has changed significantly, the 5-level tax rate is more beneficial for workers
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The new personal income tax rate has been reduced from 7 to 5 levels, raising the taxable threshold and reducing tax rates at many levels, helping employees significantly reduce tax obligations from July 1, 2026.
The Ministry of Finance abandoned the proposal to support 100% of salaries for tax officials
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The Law on Tax Administration (amended) recently passed by the National Assembly no longer stipulates 100% salary support for tax officials and personal income tax exemption.
10 cases of receiving money into personal accounts subject to tax
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Below are 10 cases of receiving money into personal accounts subject to personal income tax (PIT).
2 ways to refund personal income tax at home
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Taxpayers can refund personal income tax online in 2 ways below.
Income over 100 million VND is subject to 35% tax, the Ministry of Finance gives reasons for not being able to reduce taxes
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According to the Ministry of Finance, "in case of adjusting the rate to 35% to 30%, it will be considered a tax reduction policy for the rich".
Time to be fined for late payment of personal income tax
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In case of late payment of personal income tax after the deadline, the late payment fee will be calculated and the debt notice will be announced.
Overtime, overtime pay at least 150% of salary, how to calculate personal income tax
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Overtime pay is paid at least 150% of salary and additional income from overtime and overnight work is exempt from personal income tax.
4 groups of subjects not required to pay personal income tax in 2025
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Below are the subjects who do not have to pay personal income tax (PIT) in 2025.
How to calculate personal income tax in 2025 when having income from 2 places
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If the individual has an income from 02 places and signs a labor contract for 03 months or more, personal income tax will be calculated according to the Partial Progressive Tax System.
Reductions except for personal income tax from salaries and wages in 2025
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The deductions are the amounts deducted from the taxable income of residential individuals before determining taxable income from salaries and wages.
Income of 100 million VND subject to tax is 35%, actual tax payable is nearly 17 million VND
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With an income of 100 million VND/month and no dependents, after deductions and compulsory insurance, the actual tax payable is nearly 17 million VND.
Income of 100 million VND with tax payment of 35%, tax burden increased sharply by 30-50% compared to the old level
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The 5-level tax rate with the highest tax rate of 35% for income from 100 million VND/month may cause the tax burden to be 30-50% higher than in 2007.
Proposal to increase the highest taxable income threshold to 1.5 billion VND/year
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Experts say that the Law on Personal Income Tax still has many loopholes and does not ensure fairness.
