📢 OFFICIAL FROM 1 JULY 2026: 10 KEY CHANGES TO
PERSONAL INCOME TAX
On 30 June 2026, the Government officially issued Decree No. 253/2026/NĐ-CP, providing detailed guidance on
certain aspects of Personal Income Tax (PIT), with a series of significant changes to PIT policy after more than
13 years of applying Decree No. 65/2013/ND-CP.
The new regulations directly impact enterprises, employees, foreign experts, investors and individual business operators.
📌 Below are the key highlights to note:
🆕 1. EXPANDED SCOPE OF TAXABLE INCOME
✔ Income from e-commerce and digital platforms.
✔ Income from:
• Transfer of “.vn” domain names;
• Transfer of digital assets and crypto assets;
• Transfer of carbon credits;
• Transfer of vehicle license plates obtained through auction…
👉 These are types of income were not previously regulated in detail.
🎉 2. EXPANDED SCOPE OF TAX-EXEMPT INCOME
Additional tax exemptions are introduced for certain types of income, including:
✅ Income received by owners of private enterprises and owners of single-member limited liability companies
after Corporate Income Tax (CIT) has been paid by the enterprise.
✅ A 5-year tax exemption for:
• High-tech personnel;
• High-quality personnel in the digital technology industry.
✅ Income from:
• Green bonds;
• Carbon credits;
• Innovative start-ups;
• Science and technology tasks;
• Supplementary retirement funds;
• Non-contractual compensation;
• Division of real estate upon divorce…
💰 3. ADDITIONAL DEDUCTIONS FOR HEALTHCARE
AND EDUCATION EXPENSES
For the first time, deductions are allowed for:
🏥 Healthcare expenses
Up to 23 million VND/year.
🎓 Education and training expenses
Up to 24 million VND/year.
📌 Applicable to the taxpayer and their dependants in accordance with applicable regulations.
📈 4. MAJOR CHANGES TO TAXATION OF SECURITIES,
CAPITAL TRANSFERS AND REAL ESTATE TRANSFERS
🔹 Securities ➡ Only one tax calculation method remains.
👉 0.1% on the transfer price for each transaction.
The previous method of applying 20% tax on net gains is removed.
🔹 Real estate transfers ➡ Only one tax rate remains
👉 2% on the transfer price.
The previous method of applying 25% tax on net gains is removed.
🔹 Capital transfers other than securities
✅ A 20% on net gains continues to apply.
However, if the cost basis or related expenses cannot be determined, the following rate will apply:
👉 2% of the transfer price.
🚩 Enterprises and individuals should carefully review supporting documents for the cost basis,
related expenses and transfer price.
🏠 5. TIGHTENED RULES ON TAX RESIDENCY DETERMINATION
If an individual has a regular place of residence in Vietnam but cannot prove that they are a tax resident
of another country, they may still be treated as a tax resident of Vietnam.
The definition of residence is also expanded to include:
• Hotels;
• Motels;
• Guest houses;
• Boarding houses;
• Workplaces…
🍱 6. CLEARER RULES ON MEAL ALLOWANCES AND HOUSING RENT
📌 Mid-shift meal allowances
• Cash payment: ax-exempt up to 1.2 million VND/person/month.
• Meals provided in kind: not included in taxable income.
📌 Housing rent
Calculated based on the actual amount paid by the enterprise on behalf of the employee,
but capped at 15% of taxable income , excluding the housing rent itself.
🚩 Enterprises should update their salary, bonus and benefit policies to ensure accurate PIT calculation.
👨👩👧 7. CHANGES TO THE RULES ON DEPENDANTS
The previous fixed income threshold of 1 million VND/month is removed.
The income threshold for dependants will be determined by the Ministry of Finance, allowing more flexibility
for adjustments from time to time.
💼 8. HIGHER THRESHOLD FOR IRREGULAR INCOME
NOT SUBJECT TO PIT FINALIZATION
📌 Applicable where 10% PIT has already been withheld at source.
📊 9. NEW RULES ON ESOP SHARES AND BONUS SHARES
Upon receipt of ESOP shares or bonus shares:
✅ No immediate tax payment is required.
✅ Tax is triggered only upon transfer.
👉 In addition, 0.1% tax on the transfer price is still payable.
🤝 10. DEFERRED TAX PAYMENT FOR CAPITAL CONTRIBUTIONS
MADE IN THE FORM OF ASSETS
Where an individual contributes capital in the form of:
✔ Real estate;
✔ Securities;
✔ Capital contribution interests…
👉 No tax payment is required immediately upon capital contribution.
Tax is triggered only upon:
✔ Transfer;
✔ Capital withdrawal;
✔ Dissolution of the enterprise.
⚠️ WHAT SHOULD ENTERPRISES AND INDIVIDUALS DO?
To mitigate risks when applying the new regulations, enterprises should:
✔ Review salary, benefit and welfare policies.
✔ Review the PIT withholding process.
✔ Update payroll and tax filing software.
✔ Review and update tax documentation relating to foreign experts, ESOP shares, e-commerce,
digital assets and other relevant matters.
📌 Decree No. 253/2026/NĐ-CP officially takes effect from 01 July 2026, marking a significant change
in Personal Income Tax (PIT) policy.
Enterprises and taxpayers should proactively keep updated to ensure proper compliance, protect their rights
and minimise potential risks.
💬 In your opinion, which change will have the greatest impact on enterprises and employees?
Leave a comment and join the discussion!
📞 Contact MBA for assistance in reviewing your PIT policy and advising on suitable implementation approaches.
📌 Note: This article is intended for general legal information purposes only. The application of these regulations
to any specific case should be assessed based on detailed regulations, official guidance and
the actual supporting documents.
