The new law, passed by the National Assembly on December 10, will take effect on July 1, 2026.

The new law, passed by the National Assembly on December 10,
will take effect on July 1, 2026.

The National Assembly, during its ongoing 10th
sitting, on December 10 approved the revised Law on Personal Income Tax (PIT),
scheduled to take effect from July 1, 2026.

Under the new law, the annual tax-exempt revenue threshold
for a business household shall be increased to VND500 million (over $18,000)
from the current VND100 million (and VND200 million proposed in earlier drafts).
Accordingly, a household business earning VND500 million or less annually will
not be subject to personal income tax. This means that around 2.3 million household
businesses shall not be subject to revenue tax.

The amended law raises the family circumstance-based
deduction to VND15.5 million (about $588) per month (from the current VND11
million) for each taxpayer, while the deduction for each dependent increases to
VND6.2 million from the current VND4.4 million per month.

The law is scheduled to take effect on July 1, 2026.
However, to allow people to benefit sooner from higher deductions and lower tax
rates, provisions related to income from wages, salaries, and business
activities will be applied earlier, from January 1, 2026.

The progressive tax schedule for income from salaries and
wages has been streamlined from current seven brackets to five. The top
statutory rate remains at 35 percent, but the income threshold for this top
bracket is raised to monthly income above VND 100 million (up from the current
VND 80 million).

vneconomy-Kỳ Phong