Global Daily Tax News, Vietnam Signs Off On Personal Tax Reform, (Jan 5, 2026)

Vietnamese lawmakers have recently signed off an overhaul of the nation's personal income tax regime.

The law raises family deductions, and establishes fives income tax brackets, in place of the current seven brackets.

Under the new income tax brackets, a five percent rate will apply to monthly taxable income up to VND10m (USD400); a 15 percent rate will apply to income therefrom up to VND30m (USD1,200); a 25 percent rate will apply to income therefrom up to VND60m (USD2,400); a 30 percent rate will on income up to VND100m (USD4,000); and the top 35 percent rate will apply on income exceeding VND100m.

Meanwhile, the law raises the tax-exempt threshold for business households to VND500m (over USD18,000) from the current level of VND200m.