Vietnam updates personal income tax policies to attract talent

Vietnam is implementing new personal income tax (PIT) incentives and labor regulations aimed at attracting high-quality human resources. According to experts from KPMG Vietnam, these measures are designed to support the influx of high-value projects and technology transfer, particularly in the fields of artificial intelligence and digital technology.

Under the new policies, high-quality personnel in the digital technology industry may be eligible for a five-year PIT exemption. Additionally, within international financial centers, certain groups—including managers, experts, scientists, and highly qualified workers—may receive tax exemptions on salary and wage income through the end of 2030.

Further changes to the tax code scheduled for 2026 will adjust family circumstance deductions. Starting January 1, 2026, the monthly deduction for taxpayers will increase from 11 million VND to 15.5 million VND. The deduction for each eligible dependent will also rise from 4.4 million VND to 6.2 million VND per month. These adjustments are expected to increase the threshold for non-taxable income, potentially exempting individuals earning approximately 17 million VND per month from PIT in certain circumstances.