Which PIT Progressive Schedule Applies to December 2025 Salary Paid in January 2026: Old 7-Bracket or New 5-Bracket?
RegHub explainer by New MarketerLast updated:
Based on:Luật Thuế thu nhập cá nhân số 109/2025/QH15 - Ministry of Finance
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
The Bac Ninh Provincial Tax Authority answered a question about which progressive tax schedule to apply when a company pays December 2025 salary in January 2026 and files a PIT declaration for January 2026. Under the Personal Income Tax Law No. 109/2025/QH15, provisions relating to employment income for resident individuals apply from the 2026 tax year. The monthly PIT period is determined by the date of payment, not the date the income accrued. Therefore, December 2025 salary paid in January 2026 falls within the January 2026 (i.e., 2026 tax year) period. Conclusion: December 2025 salary paid in January 2026 is subject to the NEW 5-bracket progressive schedule under Law No. 109/2025/QH15, not the old 7-bracket schedule.
PIT Schedule for December 2025 Salary Paid Late in January 2026
Legal Basis
- Personal Income Tax Law No. 109/2025/QH15 (New Law)
- Article 29 of Law 109/2025/QH15 on effective date:
- Clause 1: Law takes effect July 1, 2026 (general provisions)
- Clause 2: Provisions on employment income for resident individuals apply from the 2026 tax year
- Clause 3: The old law (No. 04/2007/QH12 and amendments) ceases to apply to employment income from the 2026 tax year
Principle for Determining Tax Period
The PIT period for employment income is determined by the date of actual payment (cash received), not the period in which the work was performed. This is the "cash basis" principle for employment PIT.
Practical Application
- December 2025 salary paid in January 2026 → falls in the January 2026 tax period → belongs to the 2026 tax year
- 2026 tax year → Law 109/2025/QH15 applies (new 5-bracket schedule)
- Conclusion: Apply the new 5-bracket progressive schedule
New 5-Bracket Progressive Schedule Under Law 109/2025/QH15
The new schedule has 5 brackets (down from 7 previously), with higher income thresholds compared to the old schedule, designed to reduce the tax burden on low- and middle-income workers.