Vietnam Personal Income Tax regulations for 2026

Under the amended Personal Income Tax Law, which takes effect on July 1, 2026, individuals earning 21 million VND per month may not be required to pay personal income tax depending on their specific circumstances.

To qualify for this exemption, taxpayers must meet certain criteria regarding dependents or mandatory insurance deductions. For instance, with a personal deduction of 15.5 million VND and a deduction of 6.2 million VND per dependent, having at least one dependent raises the tax-free threshold above 21.7 million VND per month. Alternatively, if a taxpayer has no dependents, they may still avoid tax if their taxable income, after mandatory insurance deductions, falls below 15.5 million VND per month.

Eligible dependents include minor children, children with disabilities or lacking labor capacity, and certain adult children in education. Other eligible individuals include spouses or parents who are unable to work or have reached retirement age.