Tiếng Việt
中文Short answer: A resident individual earning income from salaries or wages must pay personal income tax (PIT) when their taxable income after family deductions is greater than 0. From tax year 2026, the deductions are VND 15.5 million/month for the individual and VND 6.2 million/month for each dependant (Resolution 110/2025/UBTVQH15) — a person with no dependants starts paying tax when income exceeds VND 15.5 million/month (after compulsory insurance).
Legal basis
- The Law on Personal Income Tax 2025 (No. 109/2025/QH15, adopted on 10/12/2025; effective from 01/07/2026; provisions on salary/wage income of resident individuals apply from tax year 2026);
- Resolution 110/2025/UBTVQH15 — new family deduction levels (replacing Resolution 954/2020/UBTVQH14 from 01/01/2026).
How to determine whether tax is due
Taxable income = assessable income − deductions (family deductions + compulsory insurance + other deductions). If the result is ≤ 0, no tax is payable.
Related services
M&A, Equity Transfer and Project Transfer
If you are preparing an equity transfer, M&A transaction, project transfer or restructuring, ANT Legal can help review legal risks and transaction structure.
- Personal deduction: VND 15.5 million/month (VND 186 million/year);
- Dependant deduction: VND 6.2 million/month per dependant;
- Compulsory insurance: social, health and unemployment insurance contributions paid by the employee are fully deductible;
- Additional deductions also apply: medical and education–training expenses; contributions to supplementary pension insurance; life insurance premiums within limits prescribed by the Government.
Progressive tax table (5 brackets, applicable from tax year 2026)
- Up to VND 10 million/month: 5%;
- VND 10–30 million/month: 10%;
- VND 30–60 million/month: 20%;
- VND 60–100 million/month: 30%;
- Over VND 100 million/month: 35%.
Illustrative example
Mr. A earns VND 25 million/month, has 01 dependant, and pays VND 2.65 million/month in compulsory insurance. Taxable income = 25 − 15.5 − 6.2 − 2.65 = VND 0.65 million → bracket 1, tax payable = 0.65 × 5% = VND 32,500/month.
Notes
- Overtime and night-shift income and payment for unused leave days as prescribed are exempt from PIT under the 2025 Law;
- Income from capital investment, capital transfers, real estate, etc. is subject to separate rates and calculation methods;
- Individuals must register their dependants to claim the deductions.
If you need to determine the appropriate approach for your specific situation, you should discuss it with a lawyer beforehand to have your file reviewed and a suitable solution advised.
For quick advice, you may contact a lawyer via 0966.475.966.
Related articles
- Who qualifies as a dependant for family deductions?
- PIT finalisation for employees
- PIT on income from capital transfers
