Personal Income Tax (PIT) in Vietnam | Update 2026 con’t
On 10 December 2025, Vietnam National Assembly has passed Law on Personal Income Tax 2025 with certain prominent changes. One noticeable of those is to reduce the number of tax brackets from seven (7) to five (5) applicable on assessable income to calculate PIT.
The top rate of 35% remains unchanged and applies on income exceeding VND 100 million per month.
👉 Along with recent changes in personal relief when computing PIT, reducing tax brackets in calculating PIT under progressive rate demonstrates a constructive initiative by the Vietnamese government, aiming to reduce the tax burden on individuals amidst a dynamic economic landscape.
📆 This takes effective from 1 July 2026 onwards.
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