With 438 out of 443 delegates voting in favor, representing 92.6% of the total number of delegates, the National Assembly passed the amended Personal Income Tax Law. (Photo: DUY LINH)
On the morning of December 10th, continuing the program of the 10th Session, with 438 out of 443 delegates voting in favor, equivalent to 92.6% of the total number of delegates, the National Assembly passed the amended Personal Income Tax Law. The law will take effect from July 1st, 2026.
Increase family deduction level
The law consists of 4 chapters and 30 articles, regulating taxpayers, taxable income, tax-exempt income, tax reductions, and the basis for calculating personal income tax.
With 438 out of 443 delegates voting in favor, representing 92.6% of the total number of delegates, the National Assembly passed the amended Personal Income Tax Law. (Photo: DUY LINH)
The law adjusts the tax-exempt revenue threshold for household and individual businesses from VND 200 million/year to VND 500 million/year, and allows this amount to be deducted before calculating tax based on a percentage of revenue. Simultaneously, the corresponding value-added tax-exempt revenue threshold is adjusted to VND 500 million.
Regarding personal deductions, the Law increases the deduction for taxpayers to VND 15.5 million/month (VND 186 million/year); the deduction for each dependent is VND 6.2 million/month. Based on fluctuations in prices and income, the Government shall submit to the Standing Committee of the National Assembly regulations on the personal deduction levels stipulated in Clause 1 of this Article, in accordance with the socio-economic situation in each period.
Taxing the transfer of gold bars.
The law adds a method of calculating income tax (revenue-expenses) for household and individual businesses with annual revenue exceeding 500 million VND up to 3 billion VND, applying a tax rate of 15% (similar to the corporate income tax rate for businesses with annual revenue under 3 billion VND). According to this calculation method, household and individual businesses only have to pay tax on income, not on revenue; therefore, if they have income, they must pay tax, and if they do not have income, they do not have to pay tax.
At the same time, the regulations allow these individuals to choose the method of calculating tax based on a percentage of their revenue.
Minister of Finance Nguyen Van Thang. (Photo: DUY LINH)
Regarding taxes on gold transfers, the Law stipulates that a tax of 0.1% on the transfer price of each transaction will be levied on gold bars, and the Government will determine the tax threshold for gold bars, the time of application, and the adjustment of the personal income tax rate on gold bar transfers in accordance with the gold market management roadmap.
Before the National Assembly voted, Minister of Finance Nguyen Van Thang, on behalf of the Government, presented a report explaining the amendments and revisions to the draft law. Accordingly, in response to the opinions of National Assembly deputies, the Government adjusted the tax-exempt revenue threshold for household and individual businesses from 200 million VND/year to 500 million VND/year. The 500 million VND/year threshold is also the amount deductible before tax payment.
With the new taxable revenue threshold, approximately 2.3 million business households nationwide will be subject to tax, resulting in a total tax reduction of about 11,800 billion VND (including both personal income tax and value-added tax).
According to Nhan Dan Newspaper
Source: https://baotuyenquang.com.vn/kinh-te/202512/tang-muc-doanh-thu-khong-phai-nop-thue-tu-200-trieu-len-500-trieu-dongnam-7cf467f/
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