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LAW No. 109/2025/QH15

On Personal Income Tax

...

Chapter II

TAX BASES FOR RESIDENTS

Article 7. Personal income tax for incomes from business activities

1. Residents engaged in production or business activities who earn an annual turnover of up to VND 500 million are not liable to personal income tax. The Government shall propose the National Assembly Standing Committee to adjust the turnover threshold exempt from personal income tax as suitable to socio-economic conditions in each period.

2. Personal income tax on incomes from business activities of a resident who earns an annual turnover exceeding the threshold specified in Clause 1 of this Article shall be determined as assessable income multiplied by (x) tax rate, in which:

a/ Assessable income is the turnover from sold goods and services minus (-) expenses related to production and business activities during the tax period;

b/ For business individuals who earn an annual turnover exceeding the threshold specified in Clause 1 of this Article but not exceeding VND 3 billion, the tax rate is 15%;

c/ For business individuals who earn an annual turnover exceeding VND 3 billion but not exceeding VND 50 billion, the tax rate is 17%;

d/ For business individuals who earn an annual turnover exceeding VND 50 billion, the tax rate is 20%;

The tax calculation method specified in this Clause is not applied to the incomes from real estate lease specified in Clause 4 of this Article.

3. Business individuals who earn an annual turnover exceeding the threshold specified in Clause 1 of this Article but not exceeding VND 3 billion may opt to pay tax under Points a and b, Clause 2 of this Article, or to pay tax by multiplying (x) the tax rate by taxable turnover. Taxable turnover and tax rate shall be determined as follows:

a/ Taxable turnover is the turnover amount exceeding the threshold specified in Clause 1 of this Article;

b/ For goods distribution and provision, the tax rate is 0.5%;

c/ For services and construction not inclusive of materials, the tax rate is 2%. Particularly for asset lease, insurance agency, lottery agency and multi-level marketing agency activities, the tax rate is 5%;

d/ For manufacture, transportation and services associated with goods, and construction inclusive of materials, the tax rate is 1.5%;

dd/ For provision of digital information content products and services for entertainment, online games, digital films, digital images, digital music and digital advertising, the tax rate is 5%;

e/ For other business activities, the tax rate is 1%.

4. Individuals leasing real estate, excluding accommodation business activities, shall pay personal income tax, which is the turnover amount exceeding the threshold specified in Clause 1 of this Article multiplied (x) by the tax rate of 5%.

5. The Government shall detail this Article.

Article 8. Personal income tax on incomes from salaries or wages

1. Personal income tax on incomes from salaries or wages of residents shall be determined as the assessable income specified in Clause 2 of this Article, regardless of income payers, multiplied (x) by the tax rate stated in the Progressive Tariff Schedule specified in Article 9 of this Law.

2. Assessable income for incomes from salaries or wages is the total taxable income specified in Clause 2, Article 3 of this Law received by a taxpayer during a tax period, minus (-)social insurance, health insurance, unemployment insurance and professional liability insurance premiums applicable to certain sectors and occupations requiring employees’ participation in compulsory insurance; supplementary pension insurance premiums in accordance with the Law on Social Insurance; voluntary pension insurance premiums and life insurance premiums not exceeding the threshold specified by the Government; and deductions specified in Articles 10 and 11 of this Law.

3. The time of determination of assessable incomes from salaries or wages is the time an organisation or individual pays income to a taxpayer or the time a taxpayer receives income.

Article 9. Partially Progressive Tariff

1. The Partially Progressive Tariff applies to assessable incomes specified in Clause 2, Article 8 of this Law.

2. The Partially Progressive Tariff is specified below:

Tax gradeAssessable income per year(VND million)Assessable income per month (VND million)Tax rate (%)1Up to 120Up to 1052Exceeding 120 but not exceeding 360Exceeding 10 but not exceeding 30103Exceeding 360 but not exceeding 720Exceeding 30 but not exceeding 60204Exceeding 720 but not exceeding 1,200Exceeding 60 but not exceeding 100305Exceeding 1,200Exceeding 10035

Article 10. Family circumstance-based reductions

1. Family circumstance-based reduction is a money amount deductible from pre-tax taxable income from salary or wage of a resident taxpayer. Family circumstance-based reductions include:

a/ Reduction for the taxpayer: VND 15.5 million per month (VND 186 million per year);

b/ Reduction for each dependant of the taxpayer: VND 6.2 million per month.

2. Based on fluctuations in prices and income, the Government shall propose the National Assembly Standing Committee to specify the levels of family circumstance-based reductions specified in Clause 1 of this Article as suitable to socio-economic conditions in each period.

3. The level of family circumstance-based reductions applicable to dependants shall be determined in adherence to the principle that a taxpayer is entitled to the reduction only once for each dependant.

4. Dependants of a taxpayer are persons a taxpayer is responsible for nurturing, including:

a/ Minor children; children who have lost civil act capacity or who are people with disabilities or who are incapable of working;

b/ Individuals who have no income or have incomes not exceeding the levels specified by the Minister of Finance, including adult children who are studying at universities, colleges, professional secondary schools or job training institutions; spouses who are incapable of working; parents who are beyond the working age or incapable of working; and other supportless persons whom the taxpayer has to directly nurture.

Article 11. Reduction for charity or humanitarian donations and other reductions

Residents are entitled to reduction from taxable income, prior to the calculation of tax on income from salaries and wages, with respect to the following amounts:

1. Charity or humanitarian donations, including:

a/ Donations to organisations or establishments that care for or nurture children in special plights, people with disabilities and supportless elderly people;

b/ Donations to charity funds, humanitarian funds or study promotion funds;

c/ Donations to organisations with the function of donation mobilisation that are established and operate in accordance with law.

Organisations, establishments and funds specified in this Clause must be those licensed or recognised by competent state agencies and operating for charity, humanitarian, study promotion or not-for-profit purposes.

2. Expenses for healthcare and education-training incurred by a taxpayer and his/her dependants shall be deducted from income before tax calculation at the levels specified by the Government.

3. The expenses specified in this Article must meet conditions on invoices and documents in accordance with law, may not be covered by other sources.

4. The Government shall detail this Article.

Article 12. Personal income tax on incomes from capital investment

1. Tax on income from capital investment of a resident shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from capital investment is the total of taxable incomes from capital investment specified in Clause 3, Article 3 of this Law that are received by a taxpayer upon each time of income generation.

3. The time of determination of assessable income from capital investment is the time an organisation or individual pays income to a taxpayer or the time a taxpayer receives income.

4. The Government shall detail this Article.

Article 13. Personal income tax on incomes from capital transfer

1. Personal income tax on income from capital transfer of a resident shall be determined as income for tax calculation multiplied (x) by the tax rate of 20% for each transfer. In which, assessable income from capital transfer is the transfer price minus (-) the buying price and reasonable expenses related to the generation of income from capital transfer.

If the buying price and expenses related to capital transfer cannot be determined, personal tax income shall be determined as the transfer price multiplied (x) by the tax rate of 2%.

2. Personal income tax on income from securities transfer shall be determined as the transfer price multiplied (x) by the tax rate of 0.1% for each transfer.

3. The time of determination of assessable income from capital transfer is the time the capital transfer transaction is completed in accordance with law.

4. The Government shall detail this Article.

Article 14. Personal income tax on incomes from real estate transfer

1. Personal income tax on income from real estate transfer of a resident shall be determined as the transfer price multiplied (x) by the tax rate of 2%.

2. The time of determination of assessable income from real estate transfer is the time the transfer contract becomes effective in accordance with law or the time the real estate use rights or ownership rights are registered.

3. The Government shall detail this Article.

Article 15. Personal income tax on incomes from prize winnings

1. Personal income tax on income from prize winnings of a resident shall be determined as assessable income multiplied (x) by the tax rate of 10%.

2. Assessable income from prize winnings is the prize value exceeding VND 20 million received by a taxpayer upon each time of winning.

3. The time of determination of assessable income from prize winnings is the time an organisation or individual pays income to a taxpayer.

Article 16. Personal income tax on incomes from copyright royalty

1. Personal income tax on income from copyright royalty of a resident shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from copyright royalty is an income amount exceeding VND 20 million received by a taxpayer when assigning or licensing the subject matters of intellectual property rights or transferring technologies under each contract.

3. The time of determination of assessable income from copyright royalty is the time an organisation or individual pays income to a taxpayer.

Article 17. Personal income tax on incomes from commercial franchising

1. Personal income tax on income from commercial franchising of a resident shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from commercial franchising is an income amount exceeding VND 20 million received by a taxpayer under each commercial franchising contract.

3. The time of determination of assessable income from commercial franchising is the time an organisation or individual pays income to a taxpayer.

Article 18. Personal income tax on incomes from inheritances or gifts

1. Personal income tax on incomes from inheritances or gifts of a resident shall be determined as assessable income multiplied (x) by the tax rate of 10%.

2. Assessable income from inheritances or gifts is the value of assets as inheritances or gifts exceeding VND 20 million received by a taxpayer upon each time of inheritance or gift receipt.

3. The time of determination of assessable income is:

a/ The time a taxpayer receives the inheritances, for income from inheritances.

b/ The time an organisation or individual presents gifts to a taxpayer or the time a taxpayer receives income, for incomes from gifts.

4. The Government shall detail this Article.

Article 19. Personal income tax on other incomes

1. Personal income tax on other incomes of a resident specified in Points a, b and c, Clause 10, Article 3 of this Law shall be determined as assessable income multiplied (x) by the tax rate of 5%. In which, assessable income is the income amount exceeding VND 20 million received by the taxpayer upon each time of income generation.

2. Personal income tax on other incomes of a resident specified in Points d and dd, Clause 10, Article 3 of this Law shall be determined as the transfer price multiplied (x) by the tax rate of 0.1%.

3. The time of determination of assessable income is the time an organisation or individual pays income to a taxpayer or the time a taxpayer receives income.

4. The Government shall detail this Article.

Chapter III

TAX BASES FOR NON-RESIDENTS

Article 20. Personal income tax on incomes from business activities

1. Personal income tax on incomes from business activities of a non-resident shall be determined as turnover from business activities specified in Clause 2 of this Article multiplied by the tax rate specified in Clause 3 of this Article.

2. Turnover is the total money amount from the sale of goods, the processing of goods and the provision of services, including also subsidies, surcharges and additional charges to which the individual is entitled, regardless of whether such amounts have been received or not, and including also expenses paid by the purchaser of goods or services on behalf of the non-resident that are not reimbursed.

If agreements in a contract are not inclusive of personal income tax, the to-be-converted taxable turnover is the total money amount in any form received by the non-resident from the provision of goods or services in Vietnam, regardless of places where business activities are carried out.

3. Tax rates:

a/ 1%, for goods distribution or provision;

b/ 5%, for service provision, and construction exclusive of materials;

c/ 2%, for production, transportation and services associated with goods, and construction inclusive of materials;

dd/ 5%, for provision of digital information content products and services for entertainment, video games, digital films, digital images, digital music and advertising;

dd/ 2%, for other business activities.

Article 21. Personal income tax on incomes from salaries and wages

Personal income tax on income from salaries and wages of a non-resident shall be determined as the total salaries and wages received by the non-resident for job performance in Vietnam multiplied (x) by the tax rate of 20%, regardless of income payers.

Article 22. Personal income tax on incomes from capital investment

Personal income tax on income from capital investment of a non-resident shall be determined as the total income amount received by the non-resident from capital investment in organisations or individuals in Vietnam multiplied (x) by the tax rate of 5%.

Article 23. Personal income tax on incomes from capital transfer

1. Personal income tax on incomes from capital transfer of a non-resident shall be determined as assessable income multiplied (x) by the tax rate of 20% for each transfer, regardless of whether the transfer is made in Vietnam or abroad. In which, assessable income from capital transfer is the transfer price minus (-) the buying price and reasonable expenses related to the generation of income from capital transfer in Vietnamese organisations and individuals.

If the buying price and expenses related to capital transfer cannot be determined, personal income tax shall be determined as the transfer price for capital contributions in Vietnamese organisations and individuals multiplied (x) by the tax rate of 2%.

2. Personal income tax on incomes from securities transfer of a non-resident shall be determined as the transfer price multiplied (x) by the tax rate of 0.1%.

3. The Government shall detail this Article.

Article 24. Personal income tax on incomes from real estate transfer

1. Personal income tax on incomes from real estate transfer of a non-resident shall be determined as the transfer price multiplied (x) by the tax rate of 2%.

2. The Government shall detail this Article.

Article 25. Personal income tax on incomes from copyright or commercial franchising

1. Personal income tax on incomes from copyright of a non-resident shall be determined as the income amount exceeding VND 20 million under each contract on assignment or licensing of subject matters of intellectual property rights or technology transfer in Vietnam multiplied (x) by the tax rate of 5%.

2. Personal income tax on incomes from commercial franchising of a non-resident shall be determined as the income amount exceeding VND 20 million under each contract on commercial franchising in Vietnam multiplied (x) by the tax rate of 5%.

Article 26. Personal income tax on incomes from prize winnings, inheritances or gifts

Personal income tax on incomes from prize winnings, inheritances or gifts of a non-resident shall be determined as the value exceeding VND 20 million upon each time of receiving winnings, inheritances or gifts in Vietnam multiplied (x) by the tax rate of 10%.

Article 27. Personal income tax on other incomes

1. Personal income tax on other incomes of a non-resident specified in Points a, b and c, Clause 10, Article 3 of this Law shall be determined as assessable income multiplied (x) by the tax rate of 5%. Assessable income is the income amount exceeding VND 20 million received by the taxpayer upon each time of earning incomes.

2. Personal income tax on other incomes of a non-resident specified in Point d and dd, Clause 10, Article 3 of this Law shall be determined as the transfer price multiplied (x) by the tax rate of 0.1%.

3. The Government shall detail this Article.

Article 28. Time of determination of assessable incomes

1. The time of determination of assessable incomes with respect to the incomes specified in Article 20 of this Law is the time a non-resident receives income or the time of issuing an invoice for goods sale or service provision.

2. The time of determination of assessable incomes with respect to the incomes specified in Articles 21, 22, 25, 26 and 27 of this Law is the time an organisation or individual in Vietnam pays income to a non-resident or the time a non-resident receives income.

3. The time of determination of assessable incomes with respect to the incomes specified in Article 23 of this Law is the time a transaction is completed in accordance with law.

4. The time of determination of assessable income with respect to the incomes specified in Article 24 of this Law is the time a transfer contract becomes effective in accordance with law or the time the real estate use rights or ownership rights are registered.

5. The Government shall detail this Article.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 29. Effect

1. This Law takes effect on July 1, 2026, except the case specified in Clause 2 of this Article.

2. Provisions related to incomes from business activities, salaries and wages of residents shall apply from the 2026 tax period.

3. Law No. 04/2007/QH12 on Personal Income Tax, which has a number of articles amended and supplemented under Law No. 26/2012/QH13, Law No. 71/2014/QH13, Law No. 31/2024/QH15, Law No. 43/2024/QH15, Law No. 48/2024/QH15, Law No. 56/2025/QH15, Law No. 71/2025/QH15 and Law No. 93/2025/QH15, ceases to be effective on the effective date of this Law; particularly, the provisions related to incomes from business activities, salaries and wages of residents cease to be effective from the 2026 tax period.

4. In case there are different provisions on tax incentives between this Law and the Law on the Capital, resolutions of the National Assembly, and the solutions specified in Point h, Clause 8, Article 10 of the Law on Organisation of the Government, the provisions of the Law on the Capital, resolutions of the National Assembly, and the solutions specified in Point h, Clause 8, Article 10 of the Law on Organisation of the Government shall prevail. If this Law provides higher tax incentives, taxpayers may opt to apply the most beneficial incentive levels.-

This Law was passed on December 10, 2025, by the 15th National Assembly of the Socialist Republic of Vietnam at its 10th session.-

Chairman of the National Assembly

TRAN THANH MAN

* Source: Official Gazette, Issue Nos 07-12/2026

<Part 1 is available at https://vietnamnews.vn/politics-laws/1785314/law-on-personal-income-tax-part-1.html>