Vietnam to amend law on personal income tax
It is pressing for Vietnam to amend the Law on Personal Income Tax (PIT) as many of its regulations have proven outdated and no longer appropriate.|
The Ministry of Justice included the Law on PIT in the Government’s proposal on the programme of law and ordinance development in 2025.
Accordingly, the draft would be submitted to the National Assembly for comments at the 10th meeting which is scheduled for October 2025. The bill is expected to be passed at the 11th meeting, scheduled for May 2026.
The ministry said that a number of provisions of the PIT law were outdated and no longer suitable in the current domestic and international economic situations, such as issues related to taxable income, tax-exempt income, tax calculation basis, method of determining taxable amount and progressive tariffs.
The law also had some gaps in dealing with new tax issues arising from the process of international economic integration and the emergence of new business models. “Incomes of individuals are increasingly diversified and complicated. New business models were constantly appearing, creating many sources of income for individuals,” the ministry wrote in the proposal.
A notable proposal was that Vietnam could consider reducing the number of levels of tax rates in the partially progressive tariff from 7 to 5 together with widening the gaps of taxable income for each bracket to ensure that more tax was collected on people with taxable income at higher grades. This would also contribute to facilitating tax declaration and payment through reducing the number of tax levels, the ministry said. Read More…
