Amendment of the Law on Personal Income Tax: There will be many incentives for workers

(Chinhphu.vn) - The revised Law on Personal Income Tax (PIT) aims to reduce the tax burden and simplify declaration with adjustments to the progressive tax schedule and family deductions.

The revised Personal Income Tax Bill aims to reduce tax burden and simplify declaration with adjustments to progressive tax schedules and family deductions.

According to the agenda of the 10th session of the 15th National Assembly , on the morning of November 4, 2025, the Draft Law on Personal Income Tax (amended) will be submitted by the Government to the National Assembly. The Draft Law on Personal Income Tax (amended) is expected to amend and supplement all 35 Articles of the current Law and will replace the current Law on Personal Income Tax. The amended contents range from taxable income; tax-exempt income; tax reduction; tax for business individuals; family deductions for taxpayers and dependents; deductions for charitable and humanitarian contributions; progressive tax schedule; to the payable level of some irregular incomes...,

The Ministry of Finance informs about 4 outstanding revised contents.

Reduce the progressive tax rate from 7 levels to 5 levels

Draft on Restructuring the "Partially Progressive Tax Schedule applicable to income from wages and salaries" to simplify the tax schedule and regulate income to suit the socio -economic situation.

The draft Law on Personal Income Tax (amended) has amended one of the fundamental and core contents of the Law, which is to adjust the progressive tax schedule in the direction of reducing the number of tax rates from 7 to 5 and widening the gap between the rates. Accordingly, the tax schedule has 5 rates and the tax rates are 5%, 15%, 25%, 30%, 35% (the gap between the rates increases gradually to 10, 20, 30, 40 million VND and the final tax rate is 35% applied to taxable income over 100 million VND/month). Specifically:

+ The first tax rate is 5% but the taxable income is extended from 5 million to 10 million VND;

+ Level 2 is a tax rate of 15% applied to taxable income from 10 million VND to 30 million VND;

+ Level 3 is a tax rate of 25% applied to taxable income from 30 million VND to 60 million VND;

+ Level 4 is a tax rate of 30% applied to taxable income from 60 million VND to 100 million VND;

+ Level 5 is a tax rate of 35% applied to taxable income over 100 million VND.

This is a regulation to simplify the tax schedule, making it easier for taxpayers to calculate and monitor their tax obligations and reduce tax obligations for all individuals at current levels compared to the current Tax Schedule. Taxpayers are expected to have more benefits and incentives than under the current Personal Income Tax Law.

The Government will continue to research and evaluate carefully to ensure the highest reasonableness and fairness before submitting to the National Assembly for approval with the goal of reducing difficulties for taxpayers, increasing creativity, efficiency and labor, thereby contributing to supporting economic growth.

Additional deductions for medical and educational expenses

The draft adds new content, taxpayers will be able to deduct some expenses related to education - training and healthcare before calculating tax.

In this amendment, the Personal Income Tax Law project not only inherits the current family deductions (individuals are deducted from social insurance, health insurance, unemployment insurance, professional liability insurance for some occupations that must participate in compulsory insurance, charitable and humanitarian contributions as prescribed), not including allowances and subsidies in taxable income; but also expands the scope for taxpayers by adding pre-tax deductions for expenses for health and education to implement important Resolutions of the Politburo (Resolution No. 71-NQ/TW on education and training; Resolution No. 72-NQ/TW on protection, care and improvement of people's health), specifically: Taxpayers will be able to deduct a number of expenses related to education - training and health before calculating tax.

This policy encourages individuals to invest in education and improve their qualifications, helping people have more resources to solve financial problems when facing illness.

By allowing people to deduct essential expenses such as healthcare and education, the State demonstrates its commitment to sharing the financial burden with workers, creating conditions for them to have greater disposable income, thereby stabilizing their lives and contributing more positively to socio-economic development.

50% tax incentive for high-tech human resources

The Draft Law has added a number of provisions on personal income tax exemption and reduction to attract talents such as tax exemption and reduction for individuals who are high-tech human resources in a number of economic sectors, promoting science and technology development, digital transformation and innovation to institutionalize the Party's policies and guidelines and the State's laws in Resolutions No. 57-NQ/TW dated December 22, 2024, Resolution No. 71-NQ/TW dated August 22, 2025, Resolution No. 72-NQ/TW dated September 9, 2025 and Resolution 68-NQ/TW dated May 4, 2025 of the Politburo and a number of recently issued Laws. Specifically: 50% reduction in personal income tax on income from salaries and wages of individuals who are high-tech human resources working at enterprises and projects in the fields of high technology, high-tech application, information technology, science and technology, innovation and digital transformation and a number of priority development fields according to Government regulations .

Personal income tax incentives for high-tech human resources are a serious investment of the State in high-quality human resources, affirming the pioneering role of science and technology in the future development of the country.

This policy helps Vietnam create a competitive advantage in tax policy compared to many countries in the region and the world, helping to attract foreign experts and retain domestic talents to develop their careers, reducing the tax burden for CNC human resources is a direct motivation for them to feel secure in dedicating themselves to research and develop technology, promoting rapid and sustainable economic growth.

Draft amendments to the principles for adjusting the family deduction level. On October 17, 2025, the Standing Committee of the National Assembly issued Resolution No. 110/2025/UBTVQH15 on adjusting the family deduction level of personal income tax, accordingly, adjusting the deduction level for the taxpayer himself from 11 million VND/month to 15.5 million VND/month, adjusting the deduction level for each dependent from 4.4 million VND/month to 6.2 million VND/month. According to calculations, with this new family deduction level, an individual (if there are no dependents) with an income of 17 million VND/month will not have to pay tax . In case an individual has 01 dependent with an income of 24 million VND/month , this person will not have to pay tax . In case an individual has 02 dependents with an income of 31 million VND/month , this person will not have to pay tax .

In addition, the draft Law on Personal Income Tax (amended) amends the principle for adjusting the family deduction level. According to the provisions of the current Law on Personal Income Tax, the Standing Committee of the National Assembly is assigned to adjust the family deduction level when the CPI index fluctuates over 20%. However, the principle of adjustment when the CPI fluctuates over 20% in the current Law on Personal Income Tax will no longer be suitable for the situation of price and income fluctuations. In reality, waiting for the CPI to increase over 20% before adjusting the family deduction level takes about 5 years, while factors related to costs, prices, and people's incomes fluctuate a lot, so it is possible to base on these factors to adjust the family deduction level without waiting for the CPI to fluctuate over 20%. Accordingly, the draft Law stipulates that the Government is assigned to base on price and income fluctuations to adjust the family deduction level to suit practical requirements.

Huy Thang

Source: https://baochinhphu.vn/sua-doi-luat-thue-thu-nhap-ca-nhan-se-co-nhieu-uu-dai-cho-nguoi-lao-dong-102251103200049714.htm