Tax Update in May 2026

Vietnam Personal Income Tax Law 2025 – What Really Matters in Practice

On 10 December 2025, the National Assembly of Vietnam passed the new Personal Income Tax Law (Law No. 109/2025/QH15) (“PIT Law 2025”) replacing the PIT Law 2007. The law introduces a number of important changes to Vietnam’s personal taxation framework, reflecting a broader policy direction towards simplification, expansion of the tax base and alignment with emerging economic activities.

The PIT Law 2025 generally takes effect from 1 July 2026, with certain provisions—particularly those relating to employment and business income—applicable from the 2026 tax year.

This tax update summarises the key changes and highlights practical considerations for taxpayers.