by Tax & Accounting Consulting Department Vinasc Accounting and Tax Consulting Co., Ltd. on Dêcmber 06, 2025
Dear Readers,
Vinasc Company would like to respectfully send you an important update on the draft Law on Personal Income Tax (PIT) (amended) according to Official Dispatch No. 18491/BTC-CST dated November 27, 2025 of the Ministry of Finance. This dispatch summarizes the content of the acceptance and explanation of the review opinions and opinions of the National Assembly Deputies, showing notable changes in the direction of law making.
Tax for Households and Individual Businesses (Article 7 of the Draft)
The Ministry of Finance has proposed major changes to ensure fairness and encourage businesses to manage costs more transparently:
- Increase the level of revenue not subject to tax: Propose to adjust the level of revenue not subject to personal income tax from 200 million VND/year to 500 million VND/year .
- Change of tax calculation method: Add regulations for households and individuals doing business with revenue from 500 million VND/year to 3 billion VND/year to apply tax calculation based on income (Revenue - Expense) .
- Applicable tax rates: 15% (similar to the corporate income tax rate applied to small businesses).
- New principle: All households and individuals doing business must pay tax based on actual income. Only in cases where expenses cannot be determined, businesses will apply the method of calculating tax based on the percentage of revenue.
Progressive Tax Schedule (Income from wages and salaries) (Article 9 of the Draft)
To reduce the tax burden on workers, the Ministry of Finance has fundamentally adjusted the progressive tax schedule:
- Reduce the number of steps: Adjust from 7 steps to 5 steps .
- Widen the gap and reduce tax rates:
- Reduce the tax rate from 15% (at the old level 2) to 10% .
- Reduce the tax rate from 25% (at the old level 3) to 20% .
Proposed detailed tariff schedule:
Tax rates | Taxable income/month (million VND) | Income gap in each tax bracket (million VND) | Tax rate (%) |
1 | Up to 10 | 10 | 5 |
2 | Over 10 to 30 | 20 | 10 |
3 | Over 30 to 60 | 30 | 20 |
4 | Over 60 to 100 | 40 | 30 |
5 | Over 100 | – | 35 |
Family Deduction (Article 10 of the Draft)
- Including specific levels in the Law: The draft has been revised to include specific family deduction levels (based on Resolution 110/2025/UBTVQH15) in the Law.
- Adjustment mechanism: The Government shall submit to the National Assembly Standing Committee for adjustment of this deduction level based on fluctuations in prices and income.
Recommendation from Vinasc
This draft Law on Personal Income Tax (amended) represents a great effort to create a fairer and more supportive tax environment for workers.
We strongly recommend that business households and individuals should promptly establish a clear system of books and cost documents to optimize taxes when applying the method of calculating taxes based on actual income.
If you need further analysis or advice on preparation steps before the Law is officially passed, please contact Vinasc.