Regulations pertaining to Personal Income Tax (PIT) in Vietnam released recently, effective from 1 July 2026, set certain key changes in tax implementation and calculation.

Law No. 109/2025/QH15

Law No. 09/2026/QH16

Decree 253/2026/ND-CP, and

Circular 87/2026/TT-BTC.

Highlights from new releases:

Expansion of Taxable Income Items

Under the new framework defining ten taxable income categories, the “Other Income” category has been expanded to explicitly include:

• National “.vn” domain names
• Transfers of digital and virtual assets (including crypto),
• Auctioned vehicle license plates, and
• Carbon credits or greenhouse gas emission reduction results owned by individuals

Non-Taxable Income Updates

• Night-shift, Overtime | Exempt for amounts that comply with labor law conditions on working hours and conditions
• Pay for unused annual leave | Exempt from PIT under Clause 3, Article 113 of the 2019 Labor Code (resignation/job loss with unused annual leave)
• Mid-shift meal allowance | Amount excluded from taxable income: VND 1,200,000/person/month, effective from 1 July 2026
• Severance allowance & job-loss allowance |As prescribed by law, not included in taxable PIT income (Point h, Clause 3, Article 8, Decree 253/2026/ND-CP).

Regulations on condition for one person to be registered as dependent & dependent registration procedure

Principles for dependent deduction (Reference Clause 2, Article 48, Decree 253/2026/ND-CP)

• A taxpayer may only claim a dependent deduction if they have registered for tax and registered the dependent as required.
• The deadline for registering and filing dependent registration dossiers is no later than 31 December each year for that tax year; registration remains stable for subsequent years if there is no change.
• If a taxpayer changes workplace without changing previously registered dependent information, the new employer is not required to re-register the dependent. The employer must retain dependent supporting documents and a screenshot of the dependent information already registered on the eTax Mobile app.
• A taxpayer with salary/wage income from multiple sources may choose where to register the dependent deduction, but each dependent may only be claimed once by one taxpayer within a tax year.

Additional conditions on dependents (Reference | Article 3, Circular 87/2026/TT-BTC)

• No income, or average monthly income during the year from all sources not exceeding VND 3 million
• Working-age dependents must be disabled/incapable of work, with a certified working capacity loss of >= 81%

Conditions to be registered under category “other dependent” (Reference | Clause 2, Article 47, Decree 253/2026/ND-CP)

• Has no other means of support and lives with the taxpayer — evidenced by residence information on the VNeID application.
• Is directly supported by the taxpayer, where the taxpayer has a support obligation under Articles 104, 105 and 106 of the Law on Marriage and Family and other related legislatioN

Other deduction from taxable income with certain conditions

Charity and humanitarian contributions

• Contributions to charitable, humanitarian and study-promotion funds.
• Contributions to organizations licensed to mobilize/administer sponsorship funds established as prescribed.
• Contributions to organizations or facilities that care for and raise children in especially difficult circumstances, people with disabilities, or elderly people with no means of support

Medical & Healthcare

• Medical examination and treatment costs at domestic health facilities, within the scope of items covered by health insurance (for the taxpayer and their registered dependents)
• Up to VND23 million per year (USD885)

Education & Training

• Tuition fees for preschool, general education, vocational education and higher education, and other professional skills training at domestic education and training institutions (for the taxpayer and their registered dependents).
• Up to VND24 million per year (USD930)

Tax finalization at year-ending

An individual with additional income from another source, where the average monthly income from that source during the year does not exceed VND 15 million, and where the paying organization/individual has already withheld PIT at a rate of 10% on that income

📆 This takes effective from 1 July 2026 onward and applies for tax period 2026 (following calendar year)

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