{"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":"2026-03-27T13:19:33","modified_gmt":"2026-03-27T04:19:33","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>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>This amendment is being <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<p>This article focuses not on the overview of the amendment, but on <span class=\"swl-marker mark_orange\"><strong>the practical steps companies should take right now<\/strong><\/span> to prepare.<\/p>\n\n\n\n<p>\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>Previous (Until Dec 2025)<\/th><th>New (From Jan 2026)<\/th><\/tr><\/thead><tbody><tr><td>Personal deduction (monthly)<\/td><td>11,000,000 VND<\/td><td>15,500,000 VND<\/td><\/tr><tr><td>Dependent deduction (monthly, per person)<\/td><td>4,400,000 VND<\/td><td>6,200,000 VND<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Deductions have been raised by approximately 40%, and <span class=\"swl-marker mark_orange\"><strong>are already applicable 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)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Taxable Income (Monthly)<\/th><th>Current Rate (7 Brackets)<\/th><th>New Rate (5 Brackets)<\/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><\/figure>\n\n\n\n<p>The simplified bracket structure results 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 Do Right Now<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">\u2460 Prepare Tax Table Updates in Your Payroll System (For July)<\/h3>\n\n\n\n<p>Deduction updates should already be in place since January, but <span class=\"swl-marker mark_orange\"><strong>the tax bracket change in July<\/strong><\/span> still requires preparation.<\/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>Change progressive tax table from 7 brackets to 5 brackets<\/li>\n\n\n\n<li>Update taxable income ranges for each bracket<\/li>\n\n\n\n<li>Run test calculations to ensure new tax rates apply correctly from July payroll<\/li>\n\n\n\n<li>Plan for 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>If you manage payroll in Excel, make sure to <span class=\"swl-marker mark_orange\"><strong>allow enough time for formula updates and testing<\/strong><\/span>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2461 Verify That New Deductions Are Already Applied (Since January)<\/h3>\n\n\n\n<p>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>January through March payroll 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>If not yet applied, <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>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>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>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>With deductions changing from January and tax rates from July, <span class=\"swl-marker mark_orange\"><strong>the company&#8217;s PIT burden changes in two stages<\/strong><\/span>.<\/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>Simulate two scenarios: Jan\u2013Jun (new deductions + old tax rates) and Jul onward (new deductions + new tax rates)<\/li>\n\n\n\n<li>Estimate the budget impact of changes in company-borne PIT amounts<\/li>\n\n\n\n<li>If headquarters approval is needed, start the process early<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>Gross-up calculations are complex. We strongly recommend <span class=\"swl-marker mark_orange\"><strong>running simulations now<\/strong><\/span> rather than waiting until right before the effective date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2464 Prepare Employee Communication Materials<\/h3>\n\n\n\n<p>Since take-home pay changes 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>Vietnamese employees tend to be sensitive to changes in take-home pay. <span class=\"swl-marker mark_orange\"><strong>Proactive 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. Continuing to use old amounts means retroactive corrections back to January are required<\/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 budget approval<\/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>This PIT amendment is being implemented in <span class=\"swl-marker mark_orange\"><strong>two phases<\/strong><\/span>: increased deductions from January 2026, and simplified tax brackets from July 2026.<br>While positive for most companies and employees, the different effective dates require careful attention.<\/p>\n\n\n\n<p>From updating payroll tax tables and recalculating gross-up amounts to organizing dependent deduction filings, <span class=\"swl-marker mark_orange\"><strong>start preparing now for the July tax rate change<\/strong><\/span>.<\/p>\n\n\n\n<p>\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>","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 is being implemented in two phases. This article focuses not on the overview of the amendment, but on the practical steps companies should take right now to prepare. \u25b6 For the full overview: Vietnam National Assembly [&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,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"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":2,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1351\/revisions"}],"predecessor-version":[{"id":1356,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1351\/revisions\/1356"}],"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}]}}