{"id":1431,"date":"2026-06-01T09:53:26","date_gmt":"2026-06-01T00:53:26","guid":{"rendered":"https:\/\/est.haro-inc.com\/?p=1431"},"modified":"2026-06-07T10:36:33","modified_gmt":"2026-06-07T01:36:33","slug":"vietnam-pit-amendment-2026-final-check","status":"publish","type":"post","link":"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-amendment-2026-final-check\/","title":{"rendered":"Vietnam PIT Law Amendment (Effective July 2026) \u2014 Final Pre-Enforcement Checklist"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Only <strong><span class=\"swl-inline-color has-swl-deep-01-color\">about one month remains<\/span><\/strong> until Vietnam&#8217;s amended Personal Income Tax Law (Law No. 109\/2025\/QH15) takes effect on <span class=\"swl-marker mark_orange\">July 1, 2026<\/span>. The new personal allowance (15.5M VND\/month) and dependent allowance (6.2M VND\/month) have already been applied to payroll since January 2026, and the implementing Decree draft has already revealed concrete additional changes to allowances and tax exemptions that companies can prepare for now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This article serves as a follow-up to our February 2026 piece &#8220;<a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-amendment-2026-preparation\/\">Vietnam PIT Law Amendment July 2026: 5 Things Companies Must Prepare Now<\/a>.&#8221; With enforcement just around the corner, we provide HR and accounting professionals at Japanese-affiliated companies with the <strong><span class=\"swl-inline-color has-swl-deep-01-color\">latest status of sub-laws and a 12-point final checklist<\/span><\/strong> to verify before July 1.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Quick Review: New 5-Tier Tax Table and Deductions<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Law No. 109\/2025\/QH15 was passed by the National Assembly on December 10, 2025, replacing the previous Law No. 04\/2007\/QH12. Article 9 of the new law restructures the progressive tax brackets from 7 tiers to <span class=\"swl-marker mark_orange\">5 tiers<\/span>, and the threshold for the top rate (35%) has been raised from 80M VND to 100M VND.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Tier<\/th><th>Monthly taxable income<\/th><th>Tax rate<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>0 \u2013 10M VND<\/td><td>5%<\/td><\/tr><tr><td>2<\/td><td>Over 10M \u2013 30M VND<\/td><td>10%<\/td><\/tr><tr><td>3<\/td><td>Over 30M \u2013 60M VND<\/td><td>20%<\/td><\/tr><tr><td>4<\/td><td>Over 60M \u2013 100M VND<\/td><td>30%<\/td><\/tr><tr><td>5<\/td><td>Over 100M VND<\/td><td>35%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Regarding deductions, the personal allowance has been raised from <strong><span class=\"swl-inline-color has-swl-deep-01-color\">11M VND \u2192 15.5M VND\/month<\/span><\/strong>, and the dependent allowance from <strong><span class=\"swl-inline-color has-swl-deep-01-color\">4.4M VND \u2192 6.2M VND\/month<\/span><\/strong>. These were applied retroactively to wages and salaries from January 1, 2026, so payroll calculations should already reflect them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Five Draft-Based Changes to Prepare for Proactively<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The implementing Decree draft was published by the Ministry of Finance on March 27, 2026 and went through public consultation. Regardless of when the final version is officially issued, the draft already contains <strong><span class=\"swl-inline-color has-swl-deep-01-color\">concrete changes that directly affect payroll logic and internal regulations<\/span><\/strong>. Preparing now lets you avoid confusion immediately after enforcement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The table below summarizes the major changes identified in the draft, followed by recommended <span class=\"swl-marker mark_orange\">proactive preparation actions<\/span>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>Current<\/th><th>Draft (effective July 1, 2026)<\/th><\/tr><\/thead><tbody><tr><td>Meal allowance (cash) cap<\/td><td>730,000 VND\/month<\/td><td><strong>1.2M VND\/month<\/strong><\/td><\/tr><tr><td>Voluntary pension\/life insurance deduction<\/td><td>1M VND\/month<\/td><td><strong>3M VND\/month<\/strong><\/td><\/tr><tr><td>Severance pay<\/td><td>Partially taxable<\/td><td><strong>Fully tax-exempt (if specified in internal rules)<\/strong><\/td><\/tr><tr><td>Overtime\/night shift allowance<\/td><td>Conditional exemption<\/td><td><strong>Fully tax-exempt<\/strong><\/td><\/tr><tr><td>Side income withholding threshold<\/td><td>2M VND\/transaction, 10M VND\/year<\/td><td><strong>3M VND\/transaction, 15M VND\/year<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_good\"><div class=\"wp-block-group__inner-container\">\n<p class=\"wp-block-paragraph\"><strong>Proactive Preparation Actions<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Document the basis for <strong>severance pay<\/strong> in work rules or financial regulations so it qualifies for full tax exemption<\/li>\n\n\n\n<li>Run a simulation switching <strong>overtime and night shift allowances<\/strong> from &#8220;premium portion only&#8221; to &#8220;fully tax-exempt&#8221; treatment<\/li>\n\n\n\n<li>Configure the new caps for <strong>meal allowance and pension deductions<\/strong> as parameters in your payroll system, ready to switch on the effective date<\/li>\n\n\n\n<li>Build a payroll setup that can be <strong>updated by configuration rather than code changes<\/strong>, so further adjustments after the official Decree are quick to apply<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">12-Point Final Checklist Before Enforcement<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Below is the final checklist that Japanese-affiliated companies should complete by July 1, 2026. We recommend dividing tasks among HR, accounting, and payroll system administrators and proceeding in parallel.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>No.<\/th><th>Check item<\/th><th>Owner<\/th><\/tr><\/thead><tbody><tr><td>1<\/td><td>Confirm payroll system supports the new 5-tier tax table<\/td><td>System Admin<\/td><\/tr><tr><td>2<\/td><td>Confirm new deductions (15.5M \/ 6.2M) are reflected (already applied since Jan)<\/td><td>Payroll<\/td><\/tr><tr><td>3<\/td><td>Update meal allowance cap to 1.2M VND<\/td><td>HR \/ Accounting<\/td><\/tr><tr><td>4<\/td><td>Update voluntary pension deduction cap to 3M VND<\/td><td>Payroll<\/td><\/tr><tr><td>5<\/td><td>Reflect 21 tax-exempt categories in internal rules<\/td><td>HR<\/td><\/tr><tr><td>6<\/td><td>Update overtime\/night shift exemption processing<\/td><td>Payroll<\/td><\/tr><tr><td>7<\/td><td>Review employment contracts, work rules, and financial regulations<\/td><td>HR \/ Legal<\/td><\/tr><tr><td>8<\/td><td>Confirm CCCD (Citizen ID) integration with tax codes<\/td><td>HR<\/td><\/tr><tr><td>9<\/td><td>Review expatriate tax equalization (gross-up)<\/td><td>Accounting<\/td><\/tr><tr><td>10<\/td><td>Communicate new rules to employees (especially personal allowance changes)<\/td><td>HR<\/td><\/tr><tr><td>11<\/td><td>Update gross-up calculation formula<\/td><td>Accounting<\/td><\/tr><tr><td>12<\/td><td>Continue monitoring official Decree\/Circular publication<\/td><td>All<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-group is-style-big_icon_good\"><div class=\"wp-block-group__inner-container\">\n<p class=\"wp-block-paragraph\"><strong>Recommendation: Run final payroll simulations in June<\/strong><br>It is strongly advised to run a <span class=\"swl-marker mark_orange\">parallel comparison between old rules and new rules<\/span> using June 2026 payroll data. This allows you to identify discrepancies between system calculations and manual calculations before enforcement, minimizing the risk of incorrect withholding from July onwards.<\/p>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Impact on Expatriates<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For Japanese expatriate staff, the key points are as follows.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Residency criteria<\/strong>: The 183-day rule remains <strong><span class=\"swl-inline-color has-swl-deep-01-color\">unchanged<\/span><\/strong>.<\/li>\n\n\n\n<li><strong>Tax residents<\/strong>: Middle-income earners (annual income roughly 360M \u2013 1.2B VND) will see meaningful tax reductions.<\/li>\n\n\n\n<li><strong>Non-residents<\/strong>: 20% flat rate unchanged.<\/li>\n\n\n\n<li><strong>Gross-up calculations<\/strong>: With the top-rate threshold raised from 80M to 100M VND, the company&#8217;s burden for high earners is reduced.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For expatriates whose tax is borne by the company under tax equalization arrangements, the gross-up formula must be reviewed. We recommend running test calculations for several typical salary brackets in advance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">New Taxable Items (Digital Assets, Gold, etc.)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Article 3 of the new law adds the following new categories of taxable income. While these are less likely to apply directly to Japanese-affiliated manufacturers, they should be noted as future business considerations.<\/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>Digital asset transfers<\/strong>: 0.1% (already in effect under Circular 32\/2026)<\/li>\n\n\n\n<li><strong>Gold bar transfers<\/strong>: 0.1% (from July 1, 2026)<\/li>\n\n\n\n<li><strong>.vn domain name transfers<\/strong>: Taxed as transfer income<\/li>\n\n\n\n<li><strong>Carbon credit transfers<\/strong>: Taxed as transfer income<\/li>\n\n\n\n<li><strong>E-commerce platform income<\/strong>: Withholding by platform<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Comparison with February Article: Confirmed vs. Still Unclear<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The following table summarizes the progress made between our February 2026 article and June 2026.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Item<\/th><th>February 2026<\/th><th>June 2026<\/th><\/tr><\/thead><tbody><tr><td>5-tier tax table<\/td><td>Confirmed by law<\/td><td>Confirmed (unchanged)<\/td><\/tr><tr><td>Personal\/dependent allowances<\/td><td>Pending Decree<\/td><td>Applied to payroll since Jan<\/td><\/tr><tr><td>Meal allowance cap<\/td><td>Unknown<\/td><td><strong>Draft: 1.2M VND (ready to prepare)<\/strong><\/td><\/tr><tr><td>Pension deduction cap<\/td><td>Unknown<\/td><td><strong>Draft: 3M VND (ready to prepare)<\/strong><\/td><\/tr><tr><td>Severance pay exemption<\/td><td>Unknown<\/td><td><strong>Draft: fully exempt (ready to prepare)<\/strong><\/td><\/tr><tr><td>Implementing Decree<\/td><td>Not yet drafted<\/td><td>Draft published; final timing to monitor<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The legal framework is clear, and the draft already reveals the practical changes that will hit payroll. The smart approach is to start preparing now based on the draft so that minor adjustments after the official Decree can be absorbed quickly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: Lock In Final Confirmations During June<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With Vietnam&#8217;s amended PIT Law taking effect on July 1, 2026, we recommend that Japanese-affiliated companies complete the following <strong><span class=\"swl-inline-color has-swl-deep-01-color\">three priorities<\/span><\/strong> during the month of June.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Payroll system parallel verification<\/strong>: Confirm both old and new rule calculations match expected values<\/li>\n\n\n\n<li><strong>Internal regulation updates<\/strong>: Document tax-exempt categories such as severance pay and meal allowances in writing<\/li>\n\n\n\n<li><strong>Continued monitoring of official sub-laws<\/strong>: Be ready to respond immediately when Decree and Circular are published<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Build a payroll setup that can absorb further fine-tuning after the official Decree is published, while leveraging the draft content to lock in the major preparation work now. This approach minimizes disruption immediately after July 1.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Related Articles<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-amendment-2026-preparation\/\">Vietnam PIT Law Amendment July 2026: 5 Things Companies Must Prepare Now<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-law-amendment-2026\/\">Vietnam PIT Law Amendment 2026: Overview and Key Points<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/est.haro-inc.com\/en\/tax-pit-en\/vietnam-pit-guide\/\">Vietnam Personal Income Tax (PIT) Comprehensive Guide<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/est.haro-inc.com\/en\/payroll-en\/vietnam-payroll-deductions\/\">Vietnam Payroll Deductions Explained<\/a><\/li>\n<\/ul>\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>Only about one month remains until Vietnam&#8217;s amended Personal Income Tax Law (Law No. 109\/2025\/QH15) takes effect on July 1, 2026. The new personal allowance (15.5M VND\/month) and dependent allowance (6.2M VND\/month) have already been applied to payroll since January 2026, and the implementing Decree draft has already revealed concrete additional changes to allowances and [&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=1428","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-1431","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\/1431","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=1431"}],"version-history":[{"count":1,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1431\/revisions"}],"predecessor-version":[{"id":1432,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/posts\/1431\/revisions\/1432"}],"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=1431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/categories?post=1431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/est.haro-inc.com\/wp-json\/wp\/v2\/tags?post=1431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}