Spotlight: Adjustment to Personal Income Tax (PIT) Family Deductions – Effective from January 1, 2026
Dear Valued Readers,
Vinasc Accounting and Tax Consulting Co., Ltd. is pleased to announce a new Resolution from the National Assembly Standing Committee (UBTVQH) concerning Personal Income Tax (PIT) policy, which will directly impact taxpayers and dependents.
The UBTVQH has issued Resolution No. 110/2025/UBTVQH15 on adjusting the family deduction levels for PIT, replacing the previous Resolution No. 954/2020/UBTVQH14.
Key Content of the Resolution (Article 1)
The Resolution adjusts the family deduction levels stipulated in Clause 1, Article 19 of the Law on Personal Income Tax as follows:
Deduction Subject | Current Deduction Level (Per Res. 954/2020) | New Deduction Level (Per Res. 110/2025) |
For the Taxpayer (Self) | 11 million VND/month (132 million VND/year) | 15.5 million VND/month (186 million VND/year) |
For Each Dependent | 4.4 million VND/month | 6.2 million VND/month |
Self-Deduction Increase to 15.5 million VND/month: This means that income from salaries and wages below 15.5 million VND/month (for taxpayers without dependents) will not be subject to PIT.
Dependent Deduction Increase to 6.2 million VND/month: This increase significantly reduces the financial burden on employees with dependents.
Effective Date and Impact (Article 2)
Effective Date: This Resolution takes effect from January 01, 2026.
Applicable Tax Period: The Resolution shall be applied starting from the 2026 tax year.
Important Note:
This Resolution officially supersedes and renders ineffective Resolution No. 954/2020/UBTVQH14 (on adjusting PIT family deductions, issued on June 02, 2020) starting from the effective date of this new Resolution.
Recommendations from Vinasc
The decision to sharply increase the family deduction level is a timely policy aimed at supporting workers amid changes in prices and inflation.
Vinasc recommends that your company and individuals:
Accounting/HR Departments: Need to immediately update the new deduction levels for correct application when calculating PIT from the 2026 tax year onwards.
Employees: Can re-estimate their tax obligations for 2026 to be more proactive in managing personal finances.
Should you have any questions regarding the practical application of this Resolution in tax calculation or require assistance with dependent registration procedures, please do not hesitate to contact us for timely consultation and support.