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RSS- 1. Increase in family-based deductions
- 2. Changes on the partially progressive tariff
- 3. Raising the taxable revenue threshold for business households to VND 500 million per year
- 4. Consolidation of dependent registration into first-time tax registration; no separate dossier required
- 5. Employees with multiple sources of income shall finalize tax at the place where the highest income is paid
1. Increase in family-based deductions
The family-based deduction levels applicable from January 1, 2026 and applied to the 2026 tax period are adjusted upward under Resolution No. 110/2025/UBTVQH15 as follows:
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Deduction for the taxpayer: VND 15.5 million per month (equivalent to VND 186 million per year).
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Deduction for each dependent: VND 6.2 million per month.
2. Changes on the partially progressive tariff
| Tax grade | Taxed income per year | Taxed income per month | Tax rate (%) |
| 1 | Up to 120 | Up to 10 | 5 |
| 2 | Over 120 up to 360 | Over 10 up to 30 | 10 |
| 3 | Over 360 up to 720 | Over 30 up to 60 | 20 |
| 4 | Over 720 up to 1,200 | Over 60 up to 100 | 30 |
| 5 | Over 1,200 | Over 100 | 35 |
3. Raising the taxable revenue threshold for business households to VND 500 million per year
Article 7 of the Law on Personal Income Tax 2025 provides:
Residents engaged in production or business activities with annual revenue of VND 500 million or less shall not be required to pay personal income tax. The Government shall submit to the National Assembly Standing Committee the adjustment of the revenue threshold not subject to personal income tax in accordance with the socio-economic situation in each period.
Accordingly, the personal income tax revenue threshold applicable to business households and business individuals from the 2026 tax period is VND 500 million or more, which is five times higher than the threshold of VND 100 million per year applied in 2025.
In addition, the Law on Personal Income Tax 2025 allows business households and business individuals to deduct expenses for tax calculation in the same manner as enterprises, with tax rates ranging from 15% to 20%.
Individuals leasing real estate, excluding accommodation business activities, shall pay personal income tax determined as the portion of revenue exceeding VND 500 million per year multiplied (x) by the tax rate of 5%.
4. Consolidation of dependent registration into first-time tax registration; no separate dossier required
Under Section 2 of the Appendix enclosed with Decision No. 216/QD-BTC, the procedure for registration of dependents for family-based deductions applicable to individuals earning income from salaries and wages is listed among the administrative procedures abolished from February 14, 2026.
In particular, Section 9.2 of Appendix I promulgated together with Decree No. 373/2025/ND-CP provides that the dossier and procedures for registration of dependents shall be carried out in accordance with the first-time tax registration procedure.
5. Employees with multiple sources of income shall finalize tax at the place where the highest income is paid
Point b.2, Clause 8, Article 1 of Decree No. 373/2025/ND-CP amending and supplementing Point b.2, Clause 8, Article 11 of Decree No. 126/2020/ND-CP provides as follows:
A resident individual earning income from salaries and wages subject to withholding at source by payers at two or more places shall submit the tax finalization dossier to the tax authority directly managing the income-paying organization that pays the highest income in the year.
(Previously, the tax finalization dossier was submitted to the tax authority managing the last income-paying organization or individual.)
In case there are multiple sources paying the highest income in the year and such income amounts are equal, the individual shall submit the finalization dossier to one of the tax authorities directly managing the organizations paying such highest incomes.
Where an individual submits the personal income tax finalization dossier not in accordance with the above provisions, the tax authority that has received such dossier shall, based on information in the tax sector database system, support the transfer of the dossier to the tax authority directly managing the income-paying organization for the performance of personal income tax finalization in accordance with law.
The above are the major notable changes to the personal income tax (PIT) policy in 2026.
