Consolidated Document No. 112/VBHN-VPQH: Personal Income Tax Law (Consolidated Through April 2026)
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Based on:109/2025/QH15 (VBHN 112/VBHN-VPQH) - Government Official Gazette
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Consolidated Document No. 112/VBHN-VPQH, issued by the National Assembly Office on May 20, 2026, merges the full text of Personal Income Tax Law No. 109/2025/QH15 (passed December 10, 2025, effective July 1, 2026) with the amendments made by Law No. 09/2026/QH16 dated April 24, 2026. This law fully replaces the old Personal Income Tax Law No. 04/2007/QH12 and its many amendments, and applies to both resident and non-resident individuals. Two provisions matter most for business owners, accountants, and employees. First, the personal deduction is 15.5 million VND per month (186 million VND per year) for the taxpayer and 6.2 million VND per month per dependent. Second, the progressive tax table for salary and wage income has 5 brackets: the lowest 5 percent bracket covers income up to 10 million VND per month, and the top 35 percent bracket applies above 100 million VND per month. The law also revises how business individuals (household businesses, e-commerce sellers) are taxed: annual revenue below a Government-set threshold is exempt from personal income tax, and taxpayers above that threshold can choose between net-income taxation (15 to 20 percent depending on revenue tier) or a flat percentage of gross revenue (0.5 to 5 percent depending on business line). Although the law formally takes effect July 1, 2026, the business-income and salary-income provisions already apply retroactively to the entire 2026 tax year.
Overview
Consolidated Document No. 112/VBHN-VPQH, certified by the National Assembly Office on May 20, 2026 (signed by Chairman Le Quang Manh), merges:
- Personal Income Tax Law No. 109/2025/QH15, passed by the National Assembly on December 10, 2025, effective July 1, 2026;
- Law No. 09/2026/QH16 dated April 24, 2026 (amending provisions of the Personal Income Tax Law together with the VAT Law, Corporate Income Tax Law, and Special Consumption Tax Law), effective April 24, 2026, with certain articles applying retroactively from January 1, 2026.
This law fully replaces Personal Income Tax Law No. 04/2007/QH12 and its prior amendments.
Taxpayers
Two categories: resident individuals (present in Vietnam for 183 days or more in a calendar year or 12 consecutive months, or with a permanent place of residence in Vietnam) and non-resident individuals. Residents are taxed on income earned both inside and outside Vietnam; non-residents are taxed only on Vietnam-source income.
Ten categories of taxable income
The law lists 10 categories of taxable income: business income (including e-commerce and digital-platform business); salary and wages; capital investment income; capital transfer; real estate transfer; prize winnings; royalties; commercial franchising; inheritance and gifts of assets subject to ownership registration; and other income (transfer of «.vn» domain names, carbon credits, auctioned license plates, digital assets, gold bars).
Tax-exempt income
The law exempts 21 categories of income, most notably: real estate transferred, inherited, or gifted between immediate family members; a taxpayer's sole home or residential land; unprocessed agricultural, forestry, fishery, and salt production; interest on government bonds and bank savings; remittances from abroad; pensions; scholarships; insurance compensation; income of seafarers on international shipping lines and offshore fishing workers; income tied to science, technology, innovation, and startup ventures; and foreign experts working on non-refundable ODA projects. There is also a 5-year tax exemption for high-quality digital technology and high-tech workforce.
Tax on resident individuals - the most important changes
Business income
Business individuals with annual revenue at or below a Government-set threshold owe no personal income tax. Above that threshold, taxpayers can choose:
- Net-income method (revenue minus expenses): 15 percent if annual revenue is up to 3 billion VND, 17 percent if annual revenue is 3-50 billion VND, and 20 percent if annual revenue exceeds 50 billion VND (the rate applies to the taxpayer's entire taxable income based on their revenue tier, not as a marginal bracket calculation); or
- Flat percentage of gross revenue (for household businesses with revenue up to 3 billion VND): from 0.5 percent (goods distribution/supply) up to 5 percent (asset leasing, insurance/lottery/multi-level-marketing agencies, digital content); services and construction without materials supply are taxed separately at 2 percent.
- Real estate leasing (excluding accommodation services): 5 percent on the revenue portion above the exemption threshold.
Salary and wages - new 5-bracket progressive table
| Bracket | Monthly taxable income | Rate |
|---|---|---|
| 1 | Up to 10 million VND | 5% |
| 2 | 10-30 million VND | 10% |
| 3 | 30-60 million VND | 20% |
| 4 | 60-100 million VND | 30% |
| 5 | Above 100 million VND | 35% |
Personal deductions
- Taxpayer: 15.5 million VND per month (186 million VND per year).
- Each dependent: 6.2 million VND per month.
- Taxpayers can also deduct mandatory social/health/unemployment insurance contributions, voluntary pension/life insurance premiums (up to a Government-set cap), charitable and educational-support donations, and medical/education expenses within Government-set limits.
Other categories of resident income
- Capital investment: 5 percent of income.
- Capital transfer: 20 percent of the gain (sale price minus purchase price and related costs); if the purchase price cannot be determined, 2 percent of the sale price. Securities transfer: 0.1 percent of the sale price.
- Real estate transfer: 2 percent of the transfer price.
- Prize winnings, inheritance, gifts: 10 percent on the value above 20 million VND per occurrence.
- Royalties and franchising: 5 percent on the income above 20 million VND per contract.
Tax on non-resident individuals
Non-residents are taxed at flat rates on gross revenue or income, with no expense deductions or personal allowances: business income 1-5 percent depending on sector; salary and wages 20 percent; capital investment 5 percent; capital transfer 20 percent (or 2 percent of sale price if the purchase price cannot be determined); securities 0.1 percent; real estate 2 percent; royalties, franchising, prizes, and inheritance/gifts 5-10 percent on the portion above 20 million VND.
Effective dates
The law formally takes effect July 1, 2026, but the provisions governing business income and salary/wage income for resident individuals - including the new tax table and the new deduction levels - already apply from the entire 2026 tax year, meaning they effectively reach back to the start of 2026 for those income types. The old Personal Income Tax Law No. 04/2007/QH12 and its amendments are repealed as of the new law's effective date, except that the business-income and salary-income provisions are repealed already from the 2026 tax year.
Businesses, accountants, and HR teams should update payroll withholding calculations and personal deduction amounts now for the 2026 tax settlement, even though the consolidated text formally takes effect later in the year.