Overview of New Tax Policies in 2026 and Their Impact on Employees

Author: RBox Team | Category: Labor Market Trends

Summary: The year 2026 marks a major turning point for Vietnam’s tax system as the National Assembly passes the amended Personal Income Tax Law along with key Resolutions. In this article, RBox provides a comprehensive overview of the most important updates: increased family deduction thresholds, changes to the progressive tax brackets, taxation on gold bars and real estate... directly impacting employees' income and business operations.

On the morning of December 10, 2025, the National Assembly passed the amended Personal Income Tax Law along with several adjustments to the Law on Tax Administration, effective from July 1, 2026. In addition, Resolutions on family deductions will be applied starting from early 2026.

Below are the key changes that employees and businesses need to be aware of:

Table of Contents:

1. Amended Personal Income Tax Law: Effective from July 1, 2026
2. Increase in family deduction thresholds from January 1, 2026
3. Increase in excise tax on alcohol and beer from January 1, 2026
4. Continued reduction of environmental protection tax on fuel in 2026
5. Tax incentives for electronic manufacturing enterprises

1. Amended Personal Income Tax Law: Effective from July 1, 2026

The changes in the amended Personal Income Tax Law will significantly impact both salaried employees and individual business households.

1.1. Increase in tax threshold for business households to VND 500 million

The revenue threshold exempt from PIT and VAT for business households and individuals has been increased from VND 200 million/year to VND 500 million/year. This amount can also be deducted before applying the percentage-based tax calculation on revenue.

1.2. Option to calculate tax based on actual income

For business households and individuals with annual revenue between VND 500 million and VND 3 billion, the new law introduces a flexible tax calculation method:

Tax can be calculated based on income (Revenue minus Expenses).
Applicable tax rate: 15% (similar to small business tax rates).

1.3. Changes to progressive tax brackets (reduced to 5 levels)

The progressive tax schedule for salary and wage income has been reduced from 7 brackets to 5 brackets. The gap between brackets is widened, and mid-level tax rates are significantly reduced:

Level	Taxable income/month (Million VND)	Tax rate (%)
1	Up to 10	5%
2	Above 10 to 30	10% (reduced from 15%)
3	Above 30 to 60	20% (reduced from 25%)
4	Above 60 to 100	30%
5	Above 100	35%

1.4. Taxation on real estate transfers and gold bars

Real estate: Tax = Transfer value × 2%.
Gold bars: Tax = Transaction value × 0.1%.

Note: The taxable income timing for real estate is determined when the transfer contract becomes effective or when ownership/usage rights are registered.

2. Increase in family deduction thresholds from January 1, 2026

This is the most positive update for employees, applied from early 2026 under Resolution 110/2025/UBTVQH15. The new deduction levels increase by more than 40%:

Personal deduction: VND 15.5 million/month (equivalent to VND 186 million/year).
Dependent deduction: VND 6.2 million/month per dependent.

This adjustment aligns with the growth in average income and GDP during 2020–2025, helping reduce the tax burden for salaried workers.

3. Increase in excise tax on alcohol and beer from January 1, 2026

The 2025 Excise Tax Law officially takes effect from January 1, 2026, introducing several new provisions. Notably, there is a roadmap to increase excise taxes on alcohol, beer, tobacco, and to impose taxes on sugary beverages as follows:

Timeline	Tobacco	Alcohol (≥20 degrees)	Alcohol (<20 degrees)	Beer	Sugary beverages (>5g sugar/100ml)
01/01/2026	-	65%	35%	65%	-
01/01/2027	VND 2,000/pack	70%	40%	70%	8%
01/01/2028	VND 4,000/pack	75%	45%	75%	10%
01/01/2029	VND 6,000/pack	80%	50%	80%	10%
01/01/2030	VND 8,000/pack	85%	55%	85%	10%
01/01/2031	VND 10,000/pack	90%	60%	90%	10%

RBox Insight: Costs for year-end parties (YEP) and corporate events are expected to increase. Meanwhile, F&B and retail industries will need to adjust pricing strategies as tax rates rise over the next 5 years.

4. Continued reduction of environmental protection tax on fuel in 2026

According to Resolution 109/2025/UBTVQH15, environmental protection tax on gasoline, oil, and lubricants (excluding aviation fuel) will continue to be reduced by 50% throughout 2026.

Gasoline (excluding ethanol): VND 2,000/liter.
Diesel, lubricants: VND 1,000/liter.
Kerosene: VND 600/liter.

RBox Insight: Maintaining stable fuel tax rates helps transportation and manufacturing businesses reduce input cost pressures in 2026.

5. Extension of agricultural land tax exemption & incentives for electronics enterprises

Agricultural land: According to Resolution 216/2025/QH15, the exemption of agricultural land use tax will be extended until December 31, 2030.

Technology enterprises: From January 1, 2026, under Circular 33/2025/TT-BKHCN, electronics manufacturing enterprises will receive corporate income tax incentives if they meet one of the following criteria: