Law on Personal income tax of Vietnam 2025

 

LAW ON PERSONAL INCOME TAX

Pursuant to the Constitution of the Socialist Republic of Viet Nam in 1992, amended under Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law on Personal Income Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Law provides for taxpayers, taxable income, income eligible for tax exemption and tax reduction, and the basis for calculating personal income tax (“PIT”).

Article 2. Taxpayers

1. Taxpayers include resident individuals earning taxable income prescribed in Article 3 of this Law within and outside the territory of Vietnam and non-resident individuals earning taxable income prescribed in Article 3 of this Law within the territory of Vietnam.

2. A resident individual is a person who meets any of the following conditions:

a) He/she is present in Vietnam for at least 183 days in 01 calendar year or for 12 consecutive months from the date of first arrival in Vietnam;

b) He/she has a regular residence in Vietnam, which is either a registered place of permanent residence or a leased house in Vietnam under a fixed-term rental contract.

3. A non-resident individual is a person who does not satisfy the conditions specified in Clause 2 of this Article.

4. The Government shall elaborate this Article.

Article 3. Taxable income

Income subject to PIT (hereinafter referred to as “taxable income”) includes the following types of income, except for tax-exempt income prescribed in Article 4 of this Law:

1. Income from business operations, including:

a) Income from production and/or sale of goods and/or services;

b) Income from working as an independent practitioner holding a practicing license or certificate in accordance with law;

c) Income from agent activities, brokerage, business cooperation with organizations;

d) Income from e-commerce activities, digital platform-based business.

2. Income from salaries and remuneration, including:

a) Salaries, wages, and amounts of similar nature;

b) Remunerations and benefits in cash or in any other shape or form;

c) Allowances, subsidies, other income except: allowances, subsidies under regulations of law on preferential treatment for persons with meritorious services; national defense or security allowances; hazardous or dangerous job allowances; region-based, hardship, or attraction allowances as prescribed by law; Allowances, subsidies, subsistence allowances provided by overseas Vietnamese agencies; unexpected hardship allowance; compensation for occupational accidents and diseases; lump-sum allowance upon childbirth or adoption, working capacity reduction allowance, lump-sum retirement payment; monthly survivor benefits and other allowances prescribed by regulations of law on social insurance; severance pay, redundancy pay prescribed by the Labor Code; social protection allowances, and other allowances and subsidies that are not of a wage or salary nature as prescribed by the Government.

3. Income from capital investment, including:

a) Interest on loans;

b) Dividends;

c) Income from capital investment in other forms.

4. Income from capital transfer, including:

a) Income from transfer of stakes in business organizations;

b) Income from transfer of securities;

c) Income from capital transfer in other forms.

5. Income from real estate transfer, including:

a) Income from transfer of land use rights (LUR) and property affixed to land;

b) Income from transfer of right of ownership or right of use of housing;

c) Income from transfer of land lease rights or water surface lease rights;

d) Other income from the transfer of real estate in any shape or form.

6. Income from winnings, including:

a) Lottery winnings;

b) Promotional winnings;

c) Bet winnings;

d) Winnings from games, contests with prizes, and other forms of prizes, except casino prizes.

7. Income from royalties, including:

a) Income from the transfer or licensing of subject matters of intellectual property rights;

b) Income from technology transfer.

8. Income from franchising.

9. Income from receipt of inheritance, gifts being securities, stakes in business organizations, business establishments, real estate, and other properties subject to ownership or use right registration.

10. Other income, including:

a) Income from transfer of Vietnam’s top-level domains “.vn”;

b) Income from transfer of greenhouse gas emission reduction results and carbon credits;

c) Income from transfer of license plates purchased at auction as prescribed by law;

d) Income from transfer of digital assets;

dd) Income from transfer of gold bars.

The Government shall set the taxable threshold for gold bars, time of application and adjustment of PIT rates on transfer of gold bar according to the road map for gold market management.

11. The Government shall elaborate this Article and regulations on conversion of taxable income received in non-monetary forms or in currencies other VND.

Article 4. Tax-exempt income

1. Income from transfer, receipt of inheritance or gifts in the form of real estate between spouses, between biological parents and biological children; between adoptive parents and adopted children; between parents-in-law and children-in-law; between grandparents and grandchildren; and between biological siblings.

2. Income from transfer of housing, right to use residential land and property affixed to residential land, provided the individual owns only one house or piece of residential land in Vietnam.

3. Income from the value of LUR assigned by the State.

4. Income of households and individuals that directly produce products from agricultural production, forestry, husbandry, aquaculture, fishing that have not been processed into other products or have only been pre-processed; salt production; income from dividends of members of agricultural cooperatives and cooperative unions, of individuals who are farmers signing “Cánh đồng lớn” (“Big Farm”) contracts, production forest cultivation contracts, aquaculture contracts with enterprises.

5. Income from conversion of agricultural land use rights allocated by the State to households or individuals.

6. Income from interest (coupon) on Government bonds, municipal bonds, interest on deposit at credit institutions, interest on life insurance policies.

7. Income from remittances.

8. Night shift pay, overtime pay, unused annual leave payouts as prescribed by law.

9. Retirement pensions paid by the Social Insurance Fund; income paid by the supplemental retirement insurance fund or voluntary pension fund.

10. Scholarship income, including:

a) Scholarships funded by the state budget;

b) Scholarships from domestic or foreign organizations under their scholarship programs.

11. Income from compensation under life or non-life insurance policies, compensation for occupational accidents, state compensation, and other compensations as prescribed by law.

12. Income from charitable organizations and charity funds licensed or recognized by competent authority and operating for charitable, humanitarian, and non-profit purposes.

13. Income from foreign aid for humanitarian or charitable purposes in both governmental and non-governmental forms approved by competent authorities.

14. Income from salaries and remuneration of Vietnamese seafarers working for foreign shipping companies or Vietnamese shipping companies engaged in international transport.

15. Income of individuals who are shipowners, individuals with the right to use ships, and individuals working on ships from provision of goods and/or services directly serving offshore fishing activities.

16. Income from initial transfer of individuals’ recognized green house gas reduction results; income from transfer of individual’s granted carbon credits; income from interest on green bonds; income from initial transfer of green bonds after issuance.

17. Income from salaries and remuneration from performance of science, technology and innovation tasks.

18. Income from copyrights of science, technology and innovation tasks when their results are commercialized under regulations of law on science, technology, innovation and intellectual property.

19. Income of individual investors and experts from startups, founders of startups, individual investors in venture capital funds.

20. Income from salaries and remunerations of foreign experts working for programs/projects funded by ODA grants, foreign non-governmental programs/projects in Vietnam; income of individuals who are Vietnamese nationals working for representative agencies of international organizations of the United Nations System in Vietnam; income of individuals who participate to UN peacekeeping forces.

21. Income after payment of corporate income tax of individuals who are owners of sole proprietorships, individuals who are owners of single-member limited liability companies.

22. The Government shall elaborate this Article.

Article 5. Other cases of PIT exemption and reduction

1. Taxpayers who are facing difficulties due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay PIT shall be given PIT reduction corresponding to the level of damage but not exceeding the amount of PIT payable.

2. PIT shall be exempt for 05 years on income from salaries and remunerations of individuals in the high-quality digital technology industry workforce in the following cases:

a) Income from digital technology industry projects in concentrated digital technology zones;

b) Income from projects for research, development, manufacture of key digital products, semiconductor chips, artificial intelligence systems;

c) Income from training digital technology industry workforces.

3. PIT shall be exempt for 05 years on income from salaries and remunerations of individuals in the hi-tech workforce engaged in research and development of high technologies or strategic technologies on the List of Prioritized High Technologies or the List of Strategic Technologies and Strategic Technology Products under regulations of law on high technologies.

4. PIT exemption shall be granted to income from transfer of fund certificates of open-ended funds established under securities laws if they are held for at least 02 years from the date of purchase.

5. 50% PIT reduction shall be granted to dividends distributed to individual investors (retail investors) by securities investment funds and real estate investment funds established under the Law on Securities within the period prescribed by the Government of Vietnam.

6. The Government shall elaborate this Article.

Article 6. PIT administration

Pursuant to the provisions of this Law, the Government shall specify the annual tax period for income from business operations, income from salaries and remunerations of resident individual, tax period for occasional income of resident and non-resident individuals; time for determination of assessable income; PIT settlement; refund of overpaid PIT; responsibility for deduction, declaration and payment of PIT on behalf of taxpayers under the Law on Tax Administration.

Chapter II

BASIS FOR CALCULATION OF PERSONAL INCOME TAX PAYABLE BY RESIDENT INDIVIDUALS

Article 7. PIT on income from business operations

1. A resident individual whose annual revenue from production and/or business operations (hereinafter referred to as “business operations”) does not exceed 500 million VND shall be exempt from PIT. The Government shall periodically propose adjustments to the PIT-exempt revenue threshold to the Standing Committee of the National Assembly, in line with prevailing socio-economic developments.

2. PIT on income from business operations of resident individuals whose annual revenue is higher than the threshold prescribed in Clause 1 of this Article shall be calculated by multiplying the assessable income by the PIT rate. To be specific:

a) Assessable income equals (=) revenue from goods/services minus (-) operating expenses in the tax period;

b) Individual businesses with annual revenue exceeding 500 million VND but not exceeding 03 billion VND shall pay PIT at the rate of 15%;

c) Individual businesses with annual revenue exceeding 03 billion VND but not exceeding 50 billion VND shall pay PIT at the rate of 17%;

d) Individual businesses with annual revenue exceeding 50 billion VND shall pay PIT at the rate of 20%.

The PIT calculation method prescribed in this Clause does not apply to income from lease of real estate prescribed in Clause 4 of this Article.

3. Individual businesses with annual revenue exceeding 500 million VND but not exceeding 03 billion VND may elect either to pay PIT in accordance with Point a and Point b Clause 2 of this Article, or to pay PIT by multiplying the PIT rate by assessable revenue. Assessable revenue and PIT rate shall be determined as follows:

a) Assessable revenue is the portion of revenue exceeding the threshold of 500 million VND prescribed in Clause 1 of this Article;

b) PIT rate for goods distribution and supply: 0,5%

c) PIT rate for services and construction without provision of building materials: 2%; PIT rate for asset lease, insurance agents, lottery agents, multi-level marketing agents: 5%;

d) PIT rate for manufacture, transport, services associated with goods, construction with provision of building materials: 1,5%;

dd) PIT rate for provision of digital information products and contents for entertainment, video games, digital films, digital photos, digital music, digital advertising: 5%;

e) PIT rate for other business operations: 1%.

4. Individuals leasing out real estate, except hospitality business, shall pay 5% PIT on the portion of revenue exceeding the threshold prescribed in Clause 1 of this Article.

5. The Government shall elaborate this Article.

Article 8. PIT on income from salaries and remunerations

1. PIT on income from salaries and remunerations of resident individuals shall be determined by multiplying the assessable income prescribed in Clause 2 of this Article, regardless of the location of payment, by the progressive PIT rate prescribed in Article 9 of this Law.

2. The assessable income for income from salaries and remunerations equals (=) the total taxable income received by the taxpayer in the tax period as prescribed in Clause 2 Article 3 of this Law minus (-) payment of social insurance premiums, health insurance premiums, unemployment insurance premiums, mandatory occupational liability insurance premiums (for professions requiring occupational liability insurance), supplemental retirement insurance premiums prescribed by the Law on Social Insurance, purchase of voluntary retirement insurance premiums, life insurance premiums not exceeding the limits imposed by the Government of Vietnam, and the deductions prescribed in Article 10 and Article 11 of this Law.

3. The time for determination of assessable income from salaries and remunerations shall be the time the income is paid by the income payer to the taxpayer or the time the taxpayer receives the income.

Article 9. Progressive tax brackets

1. Progressive tax brackets shall apply to assessable income prescribed Clause 2 Article 8 of this Law.

2. Progressive tax brackets are specified in the table below:

Article 10. Family circumstance-based deductions

1. Family circumstance-based deduction is the amount deducted from taxable income before calculation of PIT on income from salaries and remunerations of resident individuals. Family circumstance-based deductions include:

a) Personal deduction: 15,5 million VND per month (186 million VND per year);

b) Dependent deduction: 6,2  million VND per dependent per month.

2. In consideration of the fluctuation of prices, income and prevailing socio-economic developments, the Government shall propose specific levels of family circumstance-based deductions prescribed in Clause 1 of this Article to the Standing Committee of the National Assembly.

3. Dependent deductions shall be applied on the basis of non-duplication, i.e. for each dependent, only one taxpayer is permitted to claim the deduction.

4. A dependent means a person to whom the taxpayer has a financial support obligation, including:

a) Minor children; children who are legally incapacitated, disabled people incapable of working;

b) Individuals who have no income or whose income does not exceed the level prescribed by the Minister of Finance, including: adult children studying at universities, colleges, professional secondary schools or vocational training institution; a spouse who is incapable of working; parents who are beyond working age or incapable of working; other persons who cannot rely on anyone else except the taxpayer.

Article 11. Deductions for charitable and humanitarian contributions, and other deductions

Resident individuals may deduct the following amounts from taxable income before calculating PIT on income from their salaries and remunerations:

1. Charitable and humanitarian contributions, including:

a) Contributions to organizations and establishments providing care for extremely disadvantaged children, disabled people, elderly persons without support from family;

b) Contributions to charitable funds, humanitarian funds, or education promotion funds;

c) Contributions to organizations that are licensed to appeal for donations, established and operating under the law.

The organizations, establishments and funds specified in this Clause must be permitted for establishment by competent authorities or recognized by competent authorities, operate for charitable, humanitarian, or education promotion purposes, and not for profit.

2. Expenditures on healthcare, education – training of taxpayers and their dependents may be deducted from income before PIT calculation at the levels prescribed by the Government of Vietnam.

3. The expenditures prescribed in this Article must be supported by invoices and proofs of payment as prescribed by law and must not be paid by other sources.

4. The Government shall elaborate this Article.

Article 12. PIT on income from capital investment

1. PIT on capital investment of resident individuals shall be determined by multiplying the assessable income by the tax rate of 5%.

2. Assessable income from capital investment is the total taxable income from capital investment received by the taxpayer in each instance prescribed in Clause 3 Article 3 of this Law.

3. The time for determination of assessable income from capital investment shall be the time the income is paid by the income payer to the taxpayer or the time the taxpayer receives the income.

4. The Government shall elaborate this Article.

Article 13. PIT on income from capital transfer

1. PIT on income from capital transfer of resident individuals shall be determined by multiplying the assessable income by the tax rate of 20% each time a transfer is conducted. Assessable income from capital transfer equals (=) 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 the capital transfer cannot be determined, PIT shall be determined by multiplying the transfer price by the tax rate of 2%.

2. PIT on income from securities transfer shall be determined by multiplying the transfer price by the tax rate of 0,1% each time a transfer is conducted.

3. The time for determination of assessable income shall be the time of completion of the transaction as prescribed by law.

4. The Government shall elaborate this Article.

Article 14. PIT on income from real estate transfer

1. PIT on income from real estate transfer of resident individuals shall be determined by multiplying the transfer price by the tax rate of 2%.

2. The time for determination of assessable income from real estate transfer is the time the transfer contract takes effect as prescribed by law or the time of registration of the right of ownership or right of use of the real estate.

3. The Government shall elaborate this Article.

Article 15. PIT on income from winnings

1. PIT on income from winnings of resident individuals shall be determined by multiplying the assessable income by the tax rate of 10%.

2. Assessable income from winnings is the portion of the prize value exceeding 20 million VND received by the taxpayer per winning instance.

3. The time for determination of assessable income from winnings is the time the income is paid by the income payer to the taxpayer.

Article 16. PIT on income from royalties

1. PIT on income from royalties of resident individuals shall be determined by multiplying the assessable income by the tax rate of 5%.

2. Assessable income from royalties is the portion of income exceeding 20 million VND received by the taxpayer upon transfer or licensing of intellectual property rights or upon transfer of the technology under each contract.

3. The time for determination of assessable income from royalties is the time the income is paid by the income payer to the taxpayer.

Article 17. PIT on income from franchising

1. PIT on income from franchising of resident individuals shall be determined by multiplying the assessable income by the tax rate of 5%.

2. Assessable income from franchising is the portion of income exceeding 20 million VND received by the taxpayer under each franchising contract.

3. The time of determination of assessable income from franchising is the time the income is paid by the income payer to the taxpayer.

Article 18. PIT on income from receipt of inheritance or gifts

1. PIT on income from receipt of inheritance or gifts of resident individuals shall be determined by multiplying the assessable income by the tax rate of 10%.

2. Assessable income from receipt of inheritance and gifts is the portion of the value of the inheritance or gift exceeding 20 million VND received by the taxpayer in each instance.

3. The time for determination of assessable income is specified as follows:

a) For income from receipt of inheritance: the time the taxpayer receives the inheritance;

b) For income from gifts: the time the organization or individual gives the gift to the taxpayer, or the time the taxpayer receives the income.

4. The Government shall elaborate this Article.

Article 19. PIT on other income

1. PIT on other income of resident individuals prescribed in Points a, b and c Clause 10 Article 3 of this Law shall be determined by multiplying the assessable income by the tax rate of 5%, where assessable income is the portion of income exceeding 20 million VND received by the taxpayer in each instance.

2. PIT on other income of resident individuals prescribed in Point d and Point dd Clause 10 Article 3 of this Law shall be determined by multiplying the transfer price by the tax rate of 0,1%.

3. The time for determination of assessable income shall be the time the income is paid by the income payer to the taxpayer or the time the taxpayer receives the income.

4. The Government shall elaborate this Article.

Chapter III

BASIS FOR TAX CALCULATION FOR NON-RESIDENT INDIVIDUALS

Article 20. PIT on income from business operations

1. Tax on income from business operations of non-resident individuals  shall be calculated by multiplying the revenue from business operations prescribed in Clause 2 of this Article by the tax rates specified in Clause 3 of this Article.

2. Revenue means the total amount received from the sale of goods, payment for processing, payment for service provision, including subsidies, surcharges and extra amounts received by the individual, whether money has been received or not, including the costs that are paid by the buyer on behalf of the non-resident individual and are not reimbursed.

If the agreement or contract does not include PIT, the assessable revenue to be converted shall be the total amount received by the non-resident individual in any shape or form from the provision of goods or services in Vietnam, regardless of the location of business operations.

3. Tax rates:

a) Distribution, supply of goods: 1%;

b) Services, construction without provision of materials: 5%;

c) Manufacture, transport, services associated with goods, construction with provision of building materials: 2%;

d) Provision of digital information products and contents for entertainment, video games, digital films, digital photos, digital music, digital advertising: 5%;

dd) Other business operations: 2%.

Article 21. PIT on income from salaries and remunerations

PIT on income from wages and remunerations of a non-resident individual shall be determined by multiplying the total amount of salaries and remunerations earned by the non-resident individual for performing works in Vietnam by the tax rate of 20%, regardless of where the income is paid.

Article 22. PIT on income from capital investment

PIT on capital investment income of a non-resident individual shall be determined by multiplying the total income received by the non-resident individual from investing capital in Vietnamese organizations or individuals by the tax rate of 5%.

Article 23. PIT on income from capital transfer

1. PIT on income from capital transfer of non-resident individuals shall be determined by multiplying the assessable income by the tax rate of 20% each time a transfer is conducted, whether the transfer takes place in Vietnam or a foreign country. Assessable income from capital transfer equals (=) the transfer price minus (-) the buying price and reasonable expenses related to the generation of income from the transfer of capital at the Vietnamese organization or individual.

If the buying price and expenses related to the capital transfer cannot be determined, PIT shall be determined by multiplying the price for transfer of capital at the Vietnamese organization or individual by the tax rate of 2%.

2. PIT on income from securities transfer of non-resident individuals shall be determined by multiplying the transfer price by the tax rate of 0,1%.

3. The Government shall elaborate this Article.

Article 24. PIT on income from real estate transfer

1. PIT on income from real estate transfer of non-resident individuals shall be determined by multiplying the transfer price by the tax rate of 2%.

2. The Government shall elaborate this Article.

Article 25. PIT on income from royalties and franchising

1. PIT on income from royalties of non-resident individuals shall be determined by multiplying the portion of income exceeding 20 million VND under each contract for transfer or licensing of intellectual property rights or technology in Vietnam by the tax rate of 5%.

2. PIT on income from franchising of non-resident individuals shall be determined by multiplying the portion of income exceeding 20 million VND under each franchising contract in Vietnam by the tax rate of 5%.

Article 26. PIT on income from winnings, receipt of inheritance or gifts

Taxable income from winnings, receipt of inheritance or gifts of non-resident individuals shall be determined by multiplying the portion of the each winnings, inheritance or gift value exceeding 20 million VND by the tax rate of 10%.

Article 27. PIT on other income

1. PIT on other income of non-resident individuals prescribed in Points a, b and c Clause 10 Article 3 of this Law shall be determined by multiplying the assessable income by the tax rate of 5%, where assessable income is the portion of income exceeding 20 million VND received by the taxpayer in each instance.

2. PIT on other income of non-resident individuals prescribed in Point d and Point dd Clause 10 Article 3 of this Law shall be determined by multiplying the transfer price by the tax rate of 0,1%.

3. The Government shall elaborate this Article.

Article 28. Time of determination of assessable income

1. The time for determination of assessable income prescribed in Article 20 of this Law is the time when the non-resident individual receives the income or when the invoice for sale of goods or provision of services is issued.

2. The time or determination of assessable income prescribed in Articles 21, 22, 25, 26 and 27 of this Law is the time when the organization or individual in Vietnam pays the income to the non-resident individual, or the time the non-resident individual receives the income.

3. The time for determination of assessable income prescribed in Article 23 of this Law is the time of completion of the transaction as prescribed by law.

4. The time for determination of assessable income prescribed in Article 24 of this Law is the time the transfer contract takes effect as prescribed by law or the time of registration of the right of ownership or right of use of the real estate.

5. The Government shall elaborate this Article.

Chapter IV

IMPLEMENTATION CLAUSES

Article 29. Implementation clauses

1. This Law enters into force on July 01, 2026, except the regulations in Clause 2 of this Article.

2. Regulations on income from business operations, salaries and remunerations of resident individuals shall be applicable from the tax period of 2026.

3. The Law on Personal Income Tax No. 04/2007/QH12, amended by Law No. 26/2012/QH13, Law No. 71/2014/QH13, Law No. 31/2024/QH15, Law No. 48/2024/QH15, Law No. 56/2025/QH15, Law No. 71/2025/QH15, and Law No.  93/2025/QH15, shall cease to be effective from the effective date of this Law; regulations on income from business operations, salaries and remunerations of resident individuals shall cease to be effective the tax period of 2026.

4. In case of discrepancies in tax incentives between this Law and the Law on the Capital, the National Assembly’s Resolutions and the solutions prescribed in Point h Clause 8 Article 10 of the Law on Government Organization, the Law on the Capital, the National Assembly’s Resolutions and the solutions prescribed in Point h Clause 8 Article 10 of the Law on Government Organization shall prevail. If the provisions of this Law are more advantageous, taxpayers may choose to apply the most advantageous incentive.

This Law is ratified by the 15^thNational Assembly of the Socialist Republic of Vietnam during its 10^th session on December 10, 2025.