PERSONAL INCOME TAX LAW (“PIT”) 2025 (LAW No. 109/2025/QH15)
On December 10, 2025, at the 10th Session of the 15th National Assembly, the Personal Income Tax Law 2025, Law No. 109/2025/QH15, was officially passed.
Accordingly, several new points of the 2025 Personal Income Tax Law should be noted as follows:
1. Adjustment of the progressive personal income tax schedule from 7 brackets to 5 brackets
Starting from July 1, 2026, the progressive personal income tax schedule will be reduced from 7 brackets to 5 brackets, with wider gaps between the brackets. The lowest tax rate is 5%, applied to income up to 10 million VND per month. The highest tax rate remains 35%, applied to income over 100 million VND per month, instead of the current threshold of 80 million VND. Specifically
2. Changes in family circumstance deductions and other tax deduction
The deduction for the taxpayer is 15.5 million VND/month; for each dependent it is 6.2 million VND/month, according to Resolution No. 110/2025/UBTVQH15.
In addition, the Law provides supplementary deductions for medical, education, and training expenses for the taxpayer and dependents, within certain capped limits. These expenses must fully comply with legal requirements regarding invoices and supporting documents.
3. Increase in taxable thresholds for certain types of income
The taxable threshold has been raised from 10 million VND to 20 million VND for certain types of income calculated per occurrence, including lottery winnings, royalties, franchise income, inheritance, and gifts.
4. Additional taxable personal income items include:
– Income from the transfer of Vietnam’s national internet domain name “.vn”;
– Income from the transfer of greenhouse gas emission reduction results and carbon credits;
– Income from the transfer of license plate numbers won at auction, as prescribed by law;
– Income from the transfer of digital assets;
– Income from the transfer of gold bars.
5. Increase in taxable revenue threshold for business income
The annual revenue threshold exempt from tax for household businesses will be raised from 200 million VND to 500 million VND, and this amount will be deducted before calculating tax based on revenue ratios. At the same time, the threshold for exemption from value-added tax will also be adjusted to 500 million VND.
6. Sale of gold bars subject to 0.1% PIT
Transactions involving the transfer of gold bars will be subject to a personal income tax rate of 0.1% per transaction. The Law authorizes the Government to stipulate the taxable value threshold, the effective date, and to adjust the tax rate in line with the roadmap for managing the gold market.
7. Personal income tax on capital transfer income
Tax on capital transfers remains applicable at a rate of 20% on taxable income, applied to both resident and non-resident individuals. If taxable income cannot be determined, a presumptive tax rate of 2% on the transfer price will apply.
For securities transfers, both resident and non-resident individuals will continue to be subject to personal income tax at 0.1% of the transfer price.
8. Additional tax-exempt income
Individuals earning wages and salaries in the digital technology sector—particularly high-tech personnel engaged in R&D, production of key digital technologies, semiconductors, AI, or strategic technologies—will be exempt from personal income tax for 5 years.
Wages and salaries for night work, overtime, and wages/salaries paid for days without leave as prescribed by law will also be exempt from personal income tax.
The 2025 Personal Income Tax Law will take effect from July 1, 2026, except for the provisions related to business income and wages/salaries of resident individuals (Clause 2, Article 29), which will apply starting from the 2026 tax year.
