On December 10, 2025, the National Assembly officially passed the amended Personal Income Tax (PIT) Law. One of the key issues receiving significant attention from both employees and businesses is the effective date of the new family circumstances deduction starting in 2026. So, will the 2026 family circumstances deduction apply from January 1, 2026, or […]

Point 1: Expansion of subjects required to use e-invoices generated from cash registers From June 1, 2025, not only enterprises but also business households and individual business owners with annual revenue of 1 billion VND or more in sectors such as retail, food and beverage, accommodation, transportation, etc., must implement cash register systems connected to […]

✅ Individuals with business income: If only one person is named in the Business Registration Certificate → The taxpayer is the named person.If multiple people are named → Each named individual must pay tax.If a household has multiple business people but only one person is named → The named person is the taxpayer.If doing business […]

Points to Note: Handling taxes for individuals on business trips before they become official legal representatives Some businesses expanding to Vietnam may assume that non-residents are not obligated to pay taxes. However, non-residents are still subject to a fixed tax rate of 20%. (This tax rate only applies to income originating in Vietnam, not the […]

The formula for calculating PIT in Vietnam is as follows: (1) Taxable income = Total income – Tax-exempt income(2)Assessable income = Taxable income – Deductions(3) Personal income tax payable = Assessable income × Progressive tax rate *Deductions include = Personal deduction + Dependent deduction + Insurance deductions + etc +Personal deduction: 11 million VND/month+Dependent deduction: […]

Personal income tax rates in Vietnam depend on the residency status: Residents: Progressive tax rates apply (see the table below). Non-residents: A fixed tax rate of 20% applies. Progressive Tax Schedule This tax schedule applies to income from business, salaries, and wages, including total taxable income as stipulated in Articles 10 and 11 of the […]

– Resident individuals: Taxed on their worldwide income, regardless of the source of payment. – Resident individuals from countries with a double taxation avoidance agreement: Taxed only from the first month of entry to the month of contract termination and departure from Vietnam, without the need for consular confirmation procedures. – Non-resident individuals: Taxed only […]

1.1 What is a Resident Individual? An individual is considered a resident in Vietnam if they meet one of the following conditions: a. Duration of Stay:Present in Vietnam for 183 days or more in a calendar year or within 12 consecutive months from the date of entry. (Both the arrival and departure days are counted […]

Guide to Self-Settlement of Personal Income Tax for 2025 on the eTax Mobile Application 1. Download and Log in to eTax Mobile 2. Prepare the Tax Settlement Declaration 3. Determine the Tax Authority for Submitting the Declaration 4. Enter Income Information and Deductions 5. Submit the Declaration Note: You are required to self-settle personal income […]

Overview of Personal Income Tax (PIT) in Vietnam Personal income tax (PIT) in Vietnam applies not only to Vietnamese workers but also affects foreigners (including Japanese) working in Vietnam, expatriates dispatched to Vietnam (including from Japan), employees recruited in Vietnam, and even short-term business trips. Therefore, understanding the tax system is crucial for both businesses […]