Under the new law, the monthly personal deduction will increase to VND 15.5 million. The number of progressive tax brackets will be reduced from seven to five, simplifying the filing process while retaining a top statutory rate of 35 percent. Thresholds for higher tax bands have been adjusted to provide relief to low and middle-income earners, a measure aimed at offsetting rising living costs and inflationary pressures. Additionally, the law introduces a 0.1 percent transfer tax applicable to digital assets, gold bars, carbon credits, and auctioned license plates. Qualified professionals working in high-tech sectors will be exempt from personal income tax, a move designed to strengthen incentives for high-value industries and support Vietnam’s broader fiscal modernization agenda.
The reforms are part of a wider effort to enhance tax administration efficiency, supported by international cooperation. On June 18, the Tax Department and the Japan International Cooperation Agency (JICA) held the seventh joint coordinating committee meeting under the “Enhancing Tax Administration Efficiency through International Experience” initiative. Launched in 2020, the project supports Vietnam’s Tax System Reform Strategy through 2030 by improving risk management, taxpayer analysis, and digital tax capabilities. Deputy Chief Representative of the JICA Vietnam Office, Ikeda Hiroyuki, noted that the project has facilitated the sharing of best practices in risk-based management and the taxation of the digital economy, helping to refine operational procedures within the Tax Department.
While personal income tax reforms proceed, the Ministry of Finance is separately reviewing the implementation of property-related tax policies. In response to a request from National Assembly delegate Doan Thu Ha, the ministry assessed the effectiveness of the current Law on Non-Agricultural Land Use Tax, noting that annual revenue from this tax reaches approximately VND 1.7 trillion. The ministry stated that developing a comprehensive property tax law to replace the current system requires careful consideration due to its broad scope and significant impact on multiple groups. The ministry plans to report its findings to competent authorities at an appropriate time, with the long-term goal of improving asset management and increasing state budget revenue.
Businesses and employers face immediate compliance obligations as the new tax rules phase in. Detailed procedural guidance, including calculation methods and documentation requirements, will be released once the official law text and accompanying regulations are finalized. The early implementation of salary-related provisions in January 2026 provides a window for organizations to model compensation scenarios and update internal systems before the full law takes effect in mid-2026. These changes aim to balance fiscal revenue generation with economic stability and workforce incentives in a rapidly evolving tax landscape.
