Changes to Personal Income Tax Exemptions

Ho Chi Minh 549
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Dear Valued Client,


We would like to update the information related to Changes to personal income tax exemptions for your reference.


According to the Resolution No. 954/2020/UBTVQH14 dated 02nd June 2020 regarding Changes to personal income tax exemptions:


1. Exemptions

The exemptions specified in Clause 1 Article 19 of the Law on Personal Income Tax No. 04/2007/QH12, amended by Law No. 26/2012/QH13, are changed as follows:


Exemption Current exemption/per New exemption/per
Personal exemption 9,000,000 VND/month 11,000,000 VND/month (132,000,000 VND/year)
Dependent exemption 3,600,000 VND/month 4,400,000 VND/month

2. Implementation clauses

2.1 This Resolution comes into force from July 01, 2020 and is applied from the tax period of 2020.

2.2 Taxpayers who have paid tax and applied the exemptions specified in Clause 1 Article 19 of the Law on Personal Income Tax No. 04/2007/QH12, amended by Law No. 26/2012/QH13, may recalculate the personal income tax payable by applying the exemptions specified in this Resolution when preparing the 2020’s annual personal income tax declaration.


How will these new regulations affect employees?


● For Employees: Decrease the PIT amount


HR2B continues to update more information on this issue and notify the clients once getting the official documents from the Government.


What can we do for you?


Currently, we are following and updating the Labour Laws. We are ready to support you timely in order to ensure that labor-related matters are carried out accurately and in accordance with applicable laws. In case, if you have any questions or concerns regarding the above issues, please do not hesitate to contact us for advice and assistance.


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