Mr. V.M.L in Ho Chi Minh City reflected that he had overtime income in December 2025 but was paid in January 2026.
Mr. L asked, in case the enterprise has deducted tax for this income, are employees entitled to tax exemption according to the new regulations and how should it be handled?
Regarding this issue, Base Tax 24 of Ho Chi Minh City has the following opinions:
Based on the Personal Income Tax Law No. 109/2025/QH15 dated December 10, 2025.
Article 4 stipulates that income is tax-exempt:
Night work salary, overtime, salary, wages paid for days without leave according to the provisions of law...".
Clause 3, Article 8 stipulates personal income tax on income from salaries and wages of resident individuals:
The time to determine taxable income from salaries and wages is the time when organizations and individuals pay income to taxpayers or the time when taxpayers receive income.
Article 29 stipulates the implementation clause:
This Law takes effect from July 1, 2026, except for the provisions of Clause 2 of this Article.
Regulations related to income from business, from salaries and wages of resident individuals apply from the tax period of 2026.
Based on Labor Code No. 45/2019/QH14 and Decree 145/2020/ND-CP dated December 14, 2020 of the Government detailing and guiding the implementation of a number of articles of the Labor Code on labor conditions and labor relations.
Based on the above regulations, in case you have a salary or wage paid from January 1, 2026 onwards, it will be applied to the tax period of 2026 and subject to the adjustment of the 2025 Personal Income Tax Law.
Mr. L is requested to base on the actual situation arising at the unit to determine the level of personal income tax exemption according to regulations.
