Vietnam Pit

Vietnam Personal Income Tax (Thuế Thu Nhập Cá Nhân / TNCN) v1.0

Section 1 — Quick Reference

Section 1 Quick Reference table

Field	Value
Country	Vietnam (Cộng hòa Xã hội chủ nghĩa Việt Nam)
Tax	Thuế Thu Nhập Cá Nhân (TNCN — Personal Income Tax / PIT)
Currency	VND (Vietnamese Dong / đồng)
Tax year	Calendar year (1 Jan – 31 Dec)
Primary legislation	Luật Thuế Thu Nhập Cá Nhân No. 04/2007/QH12 (amended); Luật số 109/2025/QH15 (effective 01/01/2026)
Tax authority	Tổng cục Thuế (General Department of Taxation — GDT)
Filing portal	etax.gdt.gov.vn / thuedientu.gdt.gov.vn
Filing deadline	Annual finalisation: 31 March of following year
Contributor	Open Accountants Community
Validated by	Pending — requires sign-off by a Vietnam-licensed tax agent (đại lý thuế) or CPA
Skill version	1.0

Section 2 — Progressive Tax Brackets (Biểu Thuế Lũy Tiến Từng Phần) — 2026

Effective 01/01/2026, Vietnam moved from a 7-bracket to a 5-bracket progressive tax system under Luật số 109/2025/QH15.

Monthly rates (applied to taxable income per month)

Monthly rates table (Luật số 109/2025/QH15; googlesky/thue-2026 (MIT); thangtd-0050/pit)

Bracket	Monthly Taxable Income (VND)	Rate
1	≤ 10,000,000	5%
2	10,000,001 – 30,000,000	15%
3	30,000,001 – 60,000,000	25%
4	60,000,001 – 100,000,000	30%
5	> 100,000,000	35%

Annual rates (applied to taxable income per year)

Annual rates table (Luật số 109/2025/QH15; googlesky/thue-2026 (MIT); thangtd-0050/pit)

Bracket	Annual Taxable Income (VND)	Rate
1	≤ 120,000,000	5%
2	120,000,001 – 360,000,000	15%
3	360,000,001 – 720,000,000	25%
4	720,000,001 – 1,200,000,000	30%
5	> 1,200,000,000	35%

Quick tax computation table (monthly)

Quick tax computation table

If taxable income/month (VND)	Tax =
≤ 10,000,000	Income × 5%
10,000,001 – 30,000,000	500,000 + (Income − 10,000,000) × 15%
30,000,001 – 60,000,000	3,500,000 + (Income − 30,000,000) × 25%
60,000,001 – 100,000,000	11,000,000 + (Income − 60,000,000) × 30%
> 100,000,000	23,000,000 + (Income − 100,000,000) × 35%

Section 3 — Deductions (Giảm Trừ Gia Cảnh) — 2026

Personal and dependent deductions

Personal and dependent deductions table (Luật số 109/2025/QH15; googlesky/thue-2026 (MIT))

Deduction	Monthly (VND)	Annual (VND)	Notes
Personal deduction (giảm trừ bản thân)	15,500,000	186,000,000	Per taxpayer; automatic
Dependent deduction (giảm trừ người phụ thuộc)	6,200,000 per dependent	74,400,000 per dependent	Must register dependents with tax authority

• Previous values (pre-2026) — Personal deduction was 11,000,000/month; dependent deduction was 4,400,000/month. The 2026 increase reflects Resolution 954/2020/UBTVQH14's CPI-triggered adjustment mechanism enacted via Luật số 109/2025/QH15. (Nghị quyết 954/2020/UBTVQH14; Luật số 109/2025/QH15)

Other deductions

Other deductions table

Deduction	Amount	Notes
Compulsory social insurance (BHXH)	8% of salary	Employee's share — deducted before PIT
Compulsory health insurance (BHYT)	1.5% of salary	Employee's share — deducted before PIT
Unemployment insurance (BHTN)	1% of salary	Employee's share — deducted before PIT
Voluntary pension fund	Up to 1,000,000/month	If contributing to qualified fund
Charitable contributions	Actual amount	Donations to approved organisations only

Taxable income formula

• Taxable Income formula — Taxable Income = Gross Income − Compulsory insurance (BHXH + BHYT + BHTN) − Personal deduction (15,500,000/month) − Dependent deductions (6,200,000 × number of registered dependents/month) − Other allowable deductions

Section 4 — Resident vs Non-Resident

Resident vs Non-Resident table

Status	Definition	Tax treatment
Tax resident	Present in Vietnam ≥ 183 days in a calendar year OR 12 consecutive months; OR has a regular abode in Vietnam	Worldwide income; progressive rates (Section 2)
Non-resident	Does not meet resident criteria	Vietnam-sourced income only; flat 20% on employment income

Section 5 — Income Categories (Các Khoản Thu Nhập Chịu Thuế)

Income Categories table

Category	Rate	Notes
Employment income (tiền lương, tiền công)	Progressive 5-bracket (Section 2)	Main category for salaried individuals
Business income (kinh doanh)	Progressive 5-bracket OR deemed rates	Self-employed / sole proprietors
Capital gains (chuyển nhượng vốn)	20% on gains	Or 0.1% of transfer value for listed securities
Securities transfer	0.1% of sale proceeds	Regardless of gain/loss
Real estate transfer (chuyển nhượng bất động sản)	2% of transfer price	No deduction of cost basis
Royalties, franchises	5% above VND 10,000,000 per contract
Lottery / prizes (trúng thưởng)	10% above VND 10,000,000
Inheritance / gifts	10% above VND 10,000,000

Deemed tax rates for business income (self-employed individuals)

Deemed tax rates table

Business activity	Revenue tax rate
Distribution / supply of goods	0.5%
Services, construction (excl. materials)	2%
Manufacturing, transport, services with goods	1.5%
Other business activities	1%

• Small business PIT exemption — Self-employed individuals with revenue < VND 100,000,000/year are exempt from PIT on business income.

Section 6 — Filing and Payment

Withholding (Khấu Trừ Tại Nguồn)

• Employer withholding deadlines — Employers withhold PIT monthly from employee salaries and remit to GDT by the 20th of the following month (monthly filers) or 30th of the month following the quarter (quarterly filers).

Annual finalisation (Quyết Toán Thuế)

Annual finalisation table

Who	Deadline	Notes
Employers (on behalf of employees)	31 March of following year	File form 05/QTT-TNCN
Individuals self-filing	31 March of following year	File form 02/QTT-TNCN
Individuals with single employer, no additional income	May authorise employer to finalise	No separate filing needed

When individual must self-file

• Has income from 2+ sources and total additional tax > VND 100,000
• Receives income not subject to withholding
• Foreign-sourced income (residents only)
• Wishes to claim dependent deductions not registered with employer

Section 7 — Worked Examples

Example 1 — Single employee, no dependents

Facts: Monthly gross salary VND 40,000,000. No dependents.

Computation:

Gross salary:                       40,000,000
Less: BHXH (8%):                    -3,200,000
Less: BHYT (1.5%):                    -600,000
Less: BHTN (1%):                      -400,000
Less: Personal deduction:          -15,500,000
                                   -----------
Taxable income:                     20,300,000

Tax:
  First 10,000,000 × 5%  =            500,000
  Next 10,300,000 × 15%  =          1,545,000
                                   -----------
Total PIT/month:                     2,045,000

Example 2 — Employee with 2 dependents

Facts: Monthly gross salary VND 60,000,000. Two registered dependents.

Computation:

Gross salary:                       60,000,000
Less: BHXH (8%):                    -4,800,000
Less: BHYT (1.5%):                    -900,000
Less: BHTN (1%):                      -600,000
Less: Personal deduction:          -15,500,000
Less: Dependent deductions (2×):   -12,400,000
                                   -----------
Taxable income:                     25,800,000

Tax:
  First 10,000,000 × 5%  =            500,000
  Next 15,800,000 × 15%  =          2,370,000
                                   -----------
Total PIT/month:                     2,870,000

Example 3 — High income earner

Facts: Monthly gross salary VND 150,000,000. One dependent.

Computation:

Gross salary:                      150,000,000
Less: BHXH (8%, capped at 36×base): -2,984,000  (cap applies: 8% × 37,300,000)
Less: BHYT (1.5%, capped):            -559,500
Less: BHTN (1%, capped):              -373,000
Less: Personal deduction:          -15,500,000
Less: Dependent deduction (1×):     -6,200,000
                                   -----------
Taxable income (approx):          124,383,500

Tax:
  First 10,000,000 × 5%   =           500,000
  Next 20,000,000 × 15%   =         3,000,000
  Next 30,000,000 × 25%   =         7,500,000
  Next 40,000,000 × 30%   =        12,000,000
  Remaining 24,383,500 × 35% =      8,534,225
                                   -----------
Total PIT/month:                    31,534,225

Section 8 — Conservative Defaults

Conservative Defaults table

Situation	Default Assumption
Unknown residency status	Treat as resident (progressive rates — higher tax)
Unknown number of dependents	Zero dependents (no deduction)
Dependent registration unclear	Do not claim deduction
Income category unclear	Employment income (progressive rates)
Insurance contribution cap unclear	Apply cap at statutory maximum
Allowance taxability unclear	Taxable (include in gross income)
Business vs employment income unclear	Employment income

Section 9 — Red Flag Thresholds

Red Flag Thresholds table

Threshold	Value
HIGH single month tax discrepancy	VND 10,000,000
HIGH annual under-withholding	VND 50,000,000
MEDIUM unreported income source	Any additional source > VND 2,000,000/month
MEDIUM dependent claim without registration	Any amount
LOW rounding difference	VND 100,000

Section 10 — Penalties

Penalties table

Offence	Penalty
Late filing (quyết toán)	VND 2,000,000 – 25,000,000
Late payment	0.03% per day of unpaid tax
Under-declaration (underpayment)	20% of underpaid amount
Tax evasion	1× – 3× evaded tax + criminal liability
Failure to register dependents	Deduction denied + back-tax + interest

Section 11 — Exempt Income (Thu Nhập Miễn Thuế)

Exempt Income table

Item	Notes
Real estate transfer between spouses, parents/children, siblings	Exempt
Inheritance/gift between immediate family	Exempt
Salary from night shift / dangerous work allowances	Per statutory schedule
One-off relocation allowance	Per statutory limits
Life insurance proceeds	Exempt
Severance pay per labour code	Exempt (up to statutory amount)
Interest on bank deposits	Exempt (5% withholding applies separately)
Scholarships	Exempt

Section 12 — Reference Material

Key legislation

Key legislation table

Topic	Reference
PIT Law	Luật Thuế TNCN No. 04/2007/QH12 (amended 2012, 2014)
2026 bracket reform	Luật số 109/2025/QH15 (effective 01/01/2026)
Implementation decree	Nghị định 65/2013/NĐ-CP (as amended)
Circular guidance	Thông tư 111/2013/TT-BTC (as amended)
Deduction adjustment mechanism	Nghị quyết 954/2020/UBTVQH14
Tax administration	Luật Quản lý Thuế No. 38/2019/QH14
Social insurance	Luật BHXH No. 58/2014/QH13

Open-source references

Open-source references table

Repository	License	Scope
googlesky/thue-2026	MIT	2026 PIT brackets and deduction amounts
thangtd-0050/pit	Open source	Vietnam PIT calculator implementation

Known gaps

• Foreign tax credit computation for residents with overseas income — escalate
• Transfer pricing adjustments for related-party business income — escalate
• Expatriate tax equalisation — escalate
• Stock option / equity compensation — escalate
• Crypto / digital asset income — uncertain; escalate

Self-check before finalisation

• Correct bracket schedule applied (2026 five-bracket system)?
• Personal deduction at VND 15,500,000/month?
• Each dependent deduction at VND 6,200,000/month with registration confirmed?
• Compulsory insurance deducted before applying brackets?
• Insurance contribution caps applied correctly?
• All income sources identified and categorised?
• Withholding reconciled against annual liability?
• Filing deadline (31 March) noted?

Section 13 — Changelog

Changelog table

Version	Date	Change
1.0	May 2026	Initial release with 2026 five-bracket system per Luật số 109/2025/QH15

Prohibitions

• Prohibitions list — NEVER apply the old 7-bracket schedule for tax year 2026 onwards; NEVER claim dependent deduction without confirmed registration; NEVER ignore compulsory insurance deductions when computing taxable income; NEVER apply resident rates to a confirmed non-resident; NEVER present calculations as definitive — direct to a licensed Vietnamese tax agent (đại lý thuế)

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for errors, omissions, or outcomes. All outputs must be reviewed by a qualified professional before filing.

The most up-to-date version is maintained at openaccountants.com.