New Personal Income Tax regulations will be applied to the Tax period 2026

HR2B would like to inform your company of some points from the Personal Income Tax Law that will apply from the 2026 tax year:

• Adjusted family allowance deduction to VND 15.5 million/month (for the individual) and VND 6.2 million/month (for each dependent), effective from January 1, 2026.
• Salaries/income paid from January 1, 2026 onwards fall under the 2026 tax period and are subject to the new 5-level personal income tax rate.
• The application of the taxable/non-taxable income structure (e.g., allowances, benefits, overtime, bonuses) will temporarily not be applied on the January 2026 payroll. This is to await the detailed guidance decree on the Personal Income Tax Law of 2025, as the relevant new guidance content has not yet been clarified.
• The tax period based on the calendar year is determined from January 1st to December 31st of each year, regardless of which fiscal year the business uses.

Therefore, although a company may use a fiscal year different from the calendar year, this regulation does not change the tax period for personal income tax on salaries and wages. Personal income tax is still determined according to the calendar year and based on the time of income payment.

HR2B will officially update these new points into our payroll system and reflect them in the January 2026 payroll for our clients.

For payrolls that were completed earlier and finalized with the 7-tier progressive tax system, HR2B proposes updating them in the 2026 tax year finalization along with other detailed changes according to the new Government circular to be issued in the following months.