{"id":1351,"date":"2026-02-27T12:59:00","date_gmt":"2026-02-27T03:59:00","guid":{"rendered":"https:\/\/est.haro-inc.com\/?p=1351"},"modified":"2026-09-22T13:35:24","modified_gmt":"2026-09-22T04:35:24","slug":"vietnam-pit-amendment-2026-preparation","status":"publish","type":"post","link":"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-amendment-2026-preparation\/","title":{"rendered":"PIT Law Amendment Effective July 2026 | 5 Things Companies Should Do Now"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">In December 2025, Vietnam&#8217;s National Assembly passed the <strong><span class=\"swl-inline-color has-swl-deep-01-color\">amended Personal Income Tax (PIT) Law (Law No. 109\/2025\/QH15)<\/span><\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This amendment was <span class=\"swl-marker mark_orange\"><strong>implemented in two phases<\/strong><\/span>.<\/p>\n\n\n\n<div class=\"wp-block-group has-border -border02 is-style-bg_grid\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li><strong>From January 1, 2026:<\/strong> Increased personal and dependent deductions (early application under Resolution No. 110\/2025\/UBTVQH15)<\/li>\n\n\n\n<li><strong>From July 1, 2026:<\/strong> Full implementation including new 5-bracket progressive tax rates and expanded tax-exempt income categories<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_information\"><div class=\"wp-block-group__inner-container\">\n<p class=\"wp-block-paragraph\"><strong>[About this article: both phases are now in effect]<\/strong><br>This article was originally published before the amendment took effect (February 2026) as a preparation guide. Both phases \u2014 <strong>the increased deductions (January 1, 2026) and the 5-bracket progressive rates (July 1, 2026) \u2014 are now in force<\/strong>.<br>The task is no longer to prepare, but to <span class=\"swl-marker mark_orange\"><strong>verify that nothing was missed and make retroactive corrections where needed<\/strong><\/span>. Use the sections below as a verification checklist.<\/p>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">This article focuses not on the overview of the amendment, but on <span class=\"swl-marker mark_orange\"><strong>the practical steps companies need to confirm<\/strong><\/span>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25b6 For the full overview: <a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-law-amendment-2026\/\">Vietnam National Assembly Passes PIT Law Amendment \u2014 Effective July 1, 2026<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Changes at a Glance<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Increased Deductions (Effective January 2026 \u2014 Already in Effect)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>Former (Until Dec 2025)<\/th><th>Current (From Jan 2026)<\/th><\/tr><\/thead><tbody><tr><td>Personal deduction (monthly)<\/td><td>11,000,000 VND<\/td><td><strong>15,500,000 VND<\/strong><\/td><\/tr><tr><td>Dependent deduction (monthly, per person)<\/td><td>4,400,000 VND<\/td><td><strong>6,200,000 VND<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Deductions have been raised by approximately 40%, and <span class=\"swl-marker mark_orange\"><strong>apply from the 2026 tax period (January payroll onward)<\/strong><\/span>.<br>Note: The 2025 tax finalization (conducted in early 2026) still uses the old deduction amounts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">New Progressive Tax Brackets (Effective July 2026 \u2014 Now in Force)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Taxable Income (Monthly)<\/th><th>Former Rate (7 Brackets, until June 30, 2026)<\/th><th>Current Rate (5 Brackets, from July 1, 2026)<\/th><\/tr><\/thead><tbody><tr><td>Up to 5,000,000 VND<\/td><td>5%<\/td><td rowspan=\"2\">5% (Up to 10,000,000 VND)<\/td><\/tr><tr><td>5,000,001\u201310,000,000 VND<\/td><td>10%<\/td><\/tr><tr><td>10,000,001\u201318,000,000 VND<\/td><td>15%<\/td><td rowspan=\"2\">10% (10,000,001\u201330,000,000 VND)<\/td><\/tr><tr><td>18,000,001\u201332,000,000 VND<\/td><td>20%<\/td><\/tr><tr><td>32,000,001\u201352,000,000 VND<\/td><td>25%<\/td><td rowspan=\"2\">20% (30,000,001\u201360,000,000 VND)<\/td><\/tr><tr><td>52,000,001\u201380,000,000 VND<\/td><td>30%<\/td><\/tr><tr><td>Over 80,000,000 VND<\/td><td>35%<\/td><td>30% (60,000,001\u2013100,000,000 VND)<br>35% (Over 100,000,000 VND)<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">Note: The former rates in the middle column (seven brackets, including the 15% and 25% tiers) no longer apply on or after July 1, 2026.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The simplified bracket structure resulted in <span class=\"swl-marker mark_orange\"><strong>effective tax reductions<\/strong><\/span>, particularly for middle-income earners.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">5 Things Companies Should Verify<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">\u2460 Confirm the Tax Table in Your Payroll System Has Been Updated<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Deduction updates should have been in place since January, and <span class=\"swl-marker mark_orange\"><strong>the switch to the 5-bracket tax table since July<\/strong><\/span>.<\/p>\n\n\n\n<div class=\"wp-block-group has-border -border02 is-style-bg_grid\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li>The progressive tax table has been changed from 7 brackets to 5<\/li>\n\n\n\n<li>Taxable income ranges have been updated for each bracket (no abolished 15% or 25% tiers remaining)<\/li>\n\n\n\n<li>Verify against actual figures that the new rates applied correctly from July payroll onward<\/li>\n\n\n\n<li>Confirm the mixed-rate year-end finalization (Jan\u2013Jun under old rates, Jul\u2013Dec under new rates)<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">If you manage payroll in Excel, re-check for <span class=\"swl-marker mark_orange\"><strong>missed formula updates across multiple spreadsheets<\/strong><\/span>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2461 Verify That New Deductions Are Applied (Since January)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The increased personal and dependent deductions have been <span class=\"swl-marker mark_orange\"><strong>in effect since January 2026<\/strong><\/span>.<br>Confirm the following.<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_caution\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li>Payroll from January onward correctly uses the new deductions (Personal: 15,500,000 VND, Dependent: 6,200,000 VND)<\/li>\n\n\n\n<li>The 2025 tax finalization uses the old deduction amounts (new deductions apply from the 2026 tax period only)<\/li>\n\n\n\n<li>Payslips correctly reflect the changes for employees<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">If any month was missed, <span class=\"swl-marker mark_orange\"><strong>retroactive corrections back to January are required<\/strong><\/span>. Act promptly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2462 Review and Update Dependent Deduction Registrations<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The change in deduction amounts is a good opportunity to review current registrations.<\/p>\n\n\n\n<div class=\"wp-block-group has-border -border02 is-style-bg_grid\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li>Check for any unregistered dependents<\/li>\n\n\n\n<li>Verify the validity of supporting documents (birth certificates, marriage certificates, etc.)<\/li>\n\n\n\n<li>Ask employees if they have new eligible dependents<\/li>\n\n\n\n<li>Prepare registration documents for the tax authority<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Dependent deductions <span class=\"swl-marker mark_orange\"><strong>are not applied without proper registration<\/strong><\/span>. Missing registrations directly reduce employees&#8217; take-home pay.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2463 Review Gross-Up Contracts for Expatriate Employees<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Many Japanese companies use <strong><span class=\"swl-inline-color has-swl-deep-01-color\">gross-up arrangements (company bears the tax)<\/span><\/strong> for expatriate employees in Vietnam.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With deductions changing from January and tax rates from July, <span class=\"swl-marker mark_orange\"><strong>the company&#8217;s PIT burden shifted in two stages during the year<\/strong><\/span>. In particular, raising the 35% threshold from 80,000,000 VND to 100,000,000 VND per month reduces the company&#8217;s burden for higher-paid expatriates.<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_caution\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li>Verify actuals for both scenarios: Jan\u2013Jun (new deductions + old tax rates) and Jul onward (new deductions + new tax rates)<\/li>\n\n\n\n<li>Compare company-borne PIT against budget and re-forecast the year-end position<\/li>\n\n\n\n<li>If headquarters reporting or a budget revision is needed, act promptly<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Gross-up calculations are complex. We strongly recommend <span class=\"swl-marker mark_orange\"><strong>verifying against actual figures before year-end finalization<\/strong><\/span>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2464 Prepare Employee Communication Materials<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since take-home pay changed in two phases \u2014 deductions from January and tax rates from July \u2014 prepare the following to handle inquiries smoothly.<\/p>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_good\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li>Take-home pay simulations by salary range (pre-amendment vs. Jan onward vs. Jul onward)<\/li>\n\n\n\n<li>A simple explanation document for employees (in Vietnamese)<\/li>\n\n\n\n<li>An FAQ list for common questions<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Vietnamese employees tend to be sensitive to changes in take-home pay. <span class=\"swl-marker mark_orange\"><strong>Clear communication<\/strong><\/span> prevents unnecessary confusion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Common Oversights by Japanese Companies<\/h2>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_caution\"><div class=\"wp-block-group__inner-container\">\n<ul class=\"wp-block-list\">\n<li><strong>Missing the early deduction application<\/strong>: Deductions changed from January. If old amounts were used, retroactive corrections back to January are required<\/li>\n\n\n\n<li><strong>Missed tax table update<\/strong>: Still calculating on the former 7 brackets after July, with the 15% and 25% tiers left in place<\/li>\n\n\n\n<li><strong>Delayed reporting to headquarters<\/strong>: Failing to report the personnel cost impact of tax rate changes in time for a budget revision<\/li>\n\n\n\n<li><strong>Incomplete Excel updates<\/strong>: Forgetting to update tax rate tables in some of the many spreadsheets used for payroll<\/li>\n\n\n\n<li><strong>Forgetting to recalculate gross-up<\/strong>: Overlooking that the company&#8217;s PIT burden changes even when net salary stays the same<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This PIT amendment was implemented in <span class=\"swl-marker mark_orange\"><strong>two phases<\/strong><\/span> \u2014 increased deductions from January 2026, and simplified tax brackets from July 2026 \u2014 and both are now in force.<br>While positive for most companies and employees, the different effective dates require careful attention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From payroll tax tables and gross-up recalculations to dependent deduction filings, <span class=\"swl-marker mark_orange\"><strong>verify that nothing was missed before year-end tax finalization<\/strong><\/span>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u25b6 Related articles:<br><a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-law-amendment-2026\/\">Vietnam National Assembly Passes PIT Law Amendment \u2014 Effective July 1, 2026<\/a><br><a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-guide\/\">Vietnam Personal Income Tax (PIT): Structure and Calculation Steps<\/a><br><a href=\"https:\/\/est.haro-inc.com\/en\/payroll-en\/vietnam-payroll-rule\/\">Vietnam Payroll Basics: The Complete Guide<\/a><\/p>\n\n\n<div class=\"p-blogParts post_content\" data-partsID=\"983\">\n<div class=\"swell-block-fullWide pc-py-60 sp-py-40 has-bg-img alignfull lazyload\" style=\"background-color:rgba(247, 247, 247, 0.41)\" data-bg=\"http:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/DSC_1122.jpg\"><div class=\"swell-block-fullWide__inner l-article\">\n<div class=\"wp-block-columns\">\n<div class=\"wp-block-column\">\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"600\" height=\"400\" src=\"http:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta2.png\" alt=\"\" class=\"wp-image-504\" srcset=\"https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta2.png 600w, https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta2-300x200.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<div class=\"swell-block-button blue_ is-style-btn_normal\"><a href=\"https:\/\/est.haro-inc.com\/en\/download\/\" class=\"swell-block-button__link\"><span>Download Document<\/span><\/a><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column\">\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"600\" height=\"400\" src=\"http:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta1.png\" alt=\"\" class=\"wp-image-505\" srcset=\"https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta1.png 600w, https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/11\/cta1-300x200.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<div class=\"swell-block-button green_ is-style-btn_normal\"><a href=\"https:\/\/est.haro-inc.com\/en\/contact\/\" class=\"swell-block-button__link\"><span>Contact<\/span><\/a><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In December 2025, Vietnam&#8217;s National Assembly passed the amended Personal Income Tax (PIT) Law (Law No. 109\/2025\/QH15). This amendment was implemented in two phases. [About this article: both phases are now in effect]This article was originally published before the amendment took effect (February 2026) as a preparation guide. Both phases \u2014 the increased deductions (January [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1165,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"swell_btn_cv_data":"","_locale":"en_US","_original_post":"https:\/\/est.haro-inc.com\/?p=1349","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-1351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-pit-en","en-US"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/est.haro-inc.com\/wp-content\/uploads\/2025\/12\/column6.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/comments?post=1351"}],"version-history":[{"count":3,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1351\/revisions"}],"predecessor-version":[{"id":1652,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1351\/revisions\/1652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/media\/1165"}],"wp:attachment":[{"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/media?parent=1351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/categories?post=1351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/tags?post=1351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}