Tax Alert on 2025 PIT Law, Decree 253 and Circular 87
Tax Alert on 2025 PIT Law, Decree 253 and Circular 87
On 10 December 2025, the National Assembly of Vietnam enacted the new Personal Income Tax Law (Law No. 109/2025/QH15) (“PIT Law 2025”), marking the most significant reform of Vietnam’s personal income tax regime in recent years. The new law introduces a number of structural changes aimed at simplifying tax administration, broadening the tax base, and updating the legislation to reflect evolving business models and income sources in an increasingly digital economy.
To facilitate its implementation, the Government issued Decree No. 253/2026/ND-CP (“Decree 253”) and the Ministry of Finance issued Circular No. 87/2026/TT-BTC (“Circular 87”) on 30 June 2026. providing guidance on key aspects of the new law
Together, the PIT Law 2025, Decree 253 and Circular 87 form the principal legal framework governing personal income taxation in Vietnam. They take effect from 1 July 2026, although certain provisions, particularly those relating to employment and business income, apply for the 2026 tax year.
This tax update highlights the key changes introduced under the PIT Law 2025, Decree 253 and Circular 87, together with practical observations and considerations for taxpayers operating in Vietnam.
To facilitate its implementation, the Government issued Decree No. 253/2026/ND-CP (“Decree 253”) and the Ministry of Finance issued Circular No. 87/2026/TT-BTC (“Circular 87”) on 30 June 2026. providing guidance on key aspects of the new law
Together, the PIT Law 2025, Decree 253 and Circular 87 form the principal legal framework governing personal income taxation in Vietnam. They take effect from 1 July 2026, although certain provisions, particularly those relating to employment and business income, apply for the 2026 tax year.
This tax update highlights the key changes introduced under the PIT Law 2025, Decree 253 and Circular 87, together with practical observations and considerations for taxpayers operating in Vietnam.