Personal Income Tax Law 2025 (109/2025/QH15)

Pursuant to the Constitution of the Socialist Republic of Vietnam as amended and supplemented by certain provisions according to Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law on Personal Income Tax.

Chapter I. GENERAL PROVISIONS

Article 1. Scope of regulation

This law stipulates taxpayers, taxable income, tax-exempt income, tax reductions, and the basis for calculating personal income tax.

Article 2. Taxpayers

1. Personal income taxpayers are resident individuals with taxable income specified in Article 3 of this Law arising inside and outside the territory of Vietnam, and non-resident individuals with taxable income specified in Article 3 of this Law arising in the territory of Vietnam.

2. A resident individual is a person who meets one of the following conditions:

a) Being present in Vietnam for 183 days or more within one calendar year or within 12 consecutive months from the first day of presence in Vietnam;

b) Having a permanent residence in Vietnam, including having a registered permanent residence or renting a house in Vietnam under a lease agreement for a fixed term.

3. A non-resident individual is a person who does not meet the conditions specified in Clause 2 of this Article.

4. The Government shall provide detailed regulations on this Article.

Article 3. Taxable income

Personal taxable income includes the following types of income, except for income exempt from tax as provided in Article 4 of this Law:

1. Income from business, including:

a) Income from production and trading of goods and services;

b) Income from independent professional activities of individuals with licenses or practice certificates as prescribed by law;

c) Income from agency, brokerage, and business cooperation with organizations;

d) Income from e-commerce business activities, business based on digital platforms.

2. Income from salaries and wages, including:

a) Salaries, wages and items of a salary or wage nature;

b) Remuneration, benefits in cash or in kind in any form;

c) Allowances, subsidies, and other incomes except for the following items: allowances and subsidies according to the laws on preferential treatment for people with meritorious services; defense and security allowances; hazardous and dangerous allowances for sectors, professions, or jobs with hazardous and dangerous factors at the workplace; attraction allowances, regional allowances as prescribed by law; allowances, subsidies, and living expenses paid by Vietnamese agencies abroad; sudden hardship subsidies, labor accident and occupational disease subsidies, one-time allowance for childbirth or adoption, allowances due to reduced working capacity, one-time retirement allowance, monthly survivor's allowance, and other subsidies as prescribed by the law on social insurance; severance allowance, unemployment allowance; social welfare-type allowances and other allowances, subsidies, and incomes that are not in the form of salary or wages as prescribed by the Government.

3. Income from capital investment, including:

a) Loan interest;

b) Share dividends;

c) Income from capital investment in other forms.

4. Income from capital transfer, including:

a) Income from transferring capital in economic organizations;

b) Income from transferring securities;

c) Income from transferring capital in other forms.

5. Income from real estate transfer, including:

a) Income from transferring land use rights and assets attached to land;

b) Income from transferring ownership or use rights of housing;

c) Income from transferring land lease rights or water surface lease rights;

d) Other income received from real estate transfer in all forms.

6. Income from winning prizes, including:

a) Lottery winnings;

b) Winnings in promotional activities;

c) Winnings in betting forms;

d) Winnings in games, prize competitions, and other forms of winning, except winnings in casinos.

7. Income from royalties, including:

a) Income from the transfer or granting of rights to use objects of intellectual property rights;

b) Income from technology transfer.

8. Income from commercial franchising.

9. Income from inheriting or receiving gifts in the form of securities, capital shares in economic organizations, business establishments, real estate, and assets that must be registered for ownership or use.

10. Other income, including:

a) Income from transferring Vietnamese national internet domain names ".vn";

b) Income from transferring greenhouse gas reduction results, carbon credits;

c) Income from transferring auction-winning vehicle license plates according to the law;

d) Income from transferring digital assets;

e) Income from transferring gold bars.

The government regulates the threshold value of gold bars subject to tax, the timing of tax collection, and adjusts the personal income tax rate on the transfer of gold bars in accordance with the roadmap for managing the gold market.

11. The government provides detailed regulations on this Article and on the conversion of non-monetary taxable income not in Vietnamese Dong.

Article 4. Tax-exempt income

1. Income from the transfer, inheritance, or gifts of real estate between spouse and spouse; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and paternal grandchild; maternal grandfather, maternal grandmother and maternal grandchild; and between siblings.

2. Income from the transfer of houses, residential land use rights, and assets attached to residential land of an individual in cases where the individual only owns one house and one residential land in Vietnam.

3. Income from the value of land use rights of individuals allocated land by the State.

4. Income of households and individuals directly producing crops, planted forests, livestock, cultured aquatic products, or capturing aquatic products that have not been processed into other products or only subjected to normal preliminary processing; salt production; income from dividends of cooperative members, agricultural cooperative unions, and individuals who are farmers signing contracts with enterprises participating in the “Large Field” program, producing forest plantations, or farming aquatic products.

5. Income from the conversion of agricultural land of households and individuals allocated land by the State for production.

6. Income from government bonds, local government bonds, deposits at credit institutions, and life insurance contracts.

7. Income from remittances.

8. Wages for night work, overtime, salaries, wages paid for days off according to the provisions of law.

9. Pension wages paid by the Social Insurance Fund; income paid by supplementary pension funds, voluntary pension funds.

10. Income from scholarships, including:

a) Scholarships received from the state budget;

b) Scholarships received from domestic and foreign organizations according to the scholarship support programs of those organizations.

11. Income from compensation under life and non-life insurance contracts, work accident compensation, state compensation, and other compensations prescribed by law.

12. Income received from charitable organizations and funds permitted to establish or recognized by competent state agencies, operating for charitable, humanitarian purposes, not for profit purposes.

13. Income received from foreign aid sources for charitable and humanitarian purposes in the form of government and non-governmental organizations approved by the competent state authority.

14. Income from wages and salaries of Vietnamese seafarers working for foreign shipping companies or Vietnamese shipping companies engaged in international transport.

15. Income of individuals who are shipowners, individuals with the right to use the ship, and individuals working on the ship from activities providing goods and services directly serving offshore fisheries exploitation and operation.

16. Income from the first transfer of greenhouse gas emission reduction results of individuals recognized for greenhouse gas emission reduction results, carbon credits of individuals granted carbon credits; income from green bond interest; income from the first transfer of green bonds after issuance.

17. Income from salaries and wages obtained from performing scientific, technological, and innovation tasks.

18. Income from copyright of scientific, technological, and innovation tasks when the results of the tasks are commercialized in accordance with the provisions of the law on science, technology, and innovation, and the intellectual property law.

19. Income of individual investors and experts from creative startup projects, founders of creative startup companies, individual investors contributing capital to venture capital funds.

20. Income from salaries and wages of foreign experts working on programs and projects funded by non-refundable ODA capital, foreign non-governmental programs and projects in Vietnam; Vietnamese individuals working at representative offices of international organizations belonging to the United Nations System in Vietnam; individuals participating in United Nations peacekeeping forces.

21. Income after paying corporate income tax of an individual who is the owner of a private enterprise, an individual who is the owner of a one-member limited liability company.

22. The Government provides detailed regulations on this Article.

Article 5. Other cases of tax exemption and tax reduction

1. Taxpayers facing difficulties due to natural disasters, epidemics, fires, accidents, or serious illnesses affecting their ability to pay taxes shall be entitled to a tax reduction corresponding to the level of damage but not exceeding the amount of tax payable.

2. Personal income tax exemption for a period of 05 years is applicable to income from salaries and wages of individuals who are high-quality digital technology industrial human resources in the following cases:

a) Income from projects operating digital technology industries in concentrated digital technology zones;

b) Income from research and development projects, production of key digital technology products, semiconductor chips, artificial intelligence systems;

c) Income from activities of training digital technology industry personnel.

3. Personal income tax exemption for a period of 5 years on income from wages and salaries of individuals who are high-tech personnel engaged in research and development of high technology or strategic technology listed in the priority high-tech investment development list or strategic technology list, strategic technology products list in accordance with high-tech law.

4. Personal income tax exemption for the transfer of open-end fund certificates established under securities law that have been held for 02 years or more from the date of purchase.

5. Reduce personal income tax by 50% on the earnings of individual investors distributed from securities investment funds and real estate investment funds established in accordance with the provisions of the Securities Law within the period prescribed by the Government.

6. The Government shall regulate the details of this Article.

Article 6. Tax management for personal income tax

Based on the provisions of this Law, the Government shall regulate the tax calculation period on an annual basis for income from business, income from wages and salaries of resident individuals, and the tax calculation period for each occurrence of other incomes of resident and non-resident individuals; the time for determining taxable income; tax finalization; tax refund in cases where an individual has paid more tax than required or has not yet reached the amount payable; the responsibilities of withholding, declaring, and paying on behalf of taxpayers in accordance with the provisions of the Law on Tax Administration.

Chapter II. BASIS FOR TAX CALCULATION FOR RESIDENT INDIVIDUALS

Article 7. Personal income tax on income from business

Amended and supplemented provisions:

1. Resident individuals engaged in production or business activities with an annual revenue of 500 million VND or less are not required to pay personal income tax. The Government shall submit to the Standing Committee of the National Assembly for adjustment of the revenue threshold for exemption from personal income tax to suit the socio-economic situation of each period.

2. Personal income tax on business income of resident individuals with annual revenue exceeding the threshold specified in Clause 1 of this Article is determined by taxable income multiplied by the tax rate. In which:

a) Taxable income is determined by the revenue from goods and services sold minus the expenses related to production and business activities in the tax period;

b) Business individuals with annual revenue exceeding the threshold specified in Clause 1 of this Article up to 3 billion VND: tax rate 15%;

c) Business individuals with annual revenue over 3 billion VND up to 50 billion VND: tax rate 17%;

d) Business individuals with annual revenue over 50 billion VND: tax rate 20%.

Income from real estate leasing stipulated in Clause 4 of this Article does not apply the tax calculation method prescribed in this clause.

3. Business individuals with annual revenue exceeding the threshold specified in Clause 1 of this Article up to 3 billion VND may choose to pay tax according to the provisions at points a and b, Clause 2 of this Article or pay tax according to the rate multiplied by taxable revenue. Taxable revenue and tax rate are determined as follows:

a) Taxable revenue is determined by the portion of revenue exceeding the level specified in Clause 1 of this Article;

b) Distribution, supply of goods: tax rate 0.5%;

c) Services, construction without covering materials: tax rate 2%. Specifically, activities of asset leasing, insurance agency, lottery agency, multi-level marketing sales agency: tax rate 5%;

d) Production, transportation, services associated with goods, construction covering materials: tax rate 1.5%;

đ) Activities providing digital content products and services related to entertainment, electronic games, digital movies, digital photos, digital music, digital advertising: tax rate 5%;

e) Other business activities: tax rate 1%.

4. Individuals leasing real estate, except accommodation business activities, pay personal income tax determined by the portion of revenue exceeding the level specified in Clause 1 of this Article multiplied by (x) with a tax rate of 5%.

5. The government shall provide detailed regulations on this Article.

Article 8. Personal income tax on income from wages and salaries

1. Personal income tax on income from salaries and wages of resident individuals is determined based on the taxable income specified in Clause 2 of this Article, regardless of where the income is paid, multiplied (x) by the progressive tax rates specified in the Tax Rate Table set forth in Article 9 of this Law.

2. Taxable income from salaries and wages is the total taxable income specified in Clause 2 of Article 3 of this Law that the taxpayer receives in the taxable period, minus (-) contributions to social insurance, health insurance, unemployment insurance, professional liability insurance for certain sectors and occupations required to participate in mandatory insurance, additional pension insurance contributions in accordance with the provisions of the Social Insurance Law, voluntary pension insurance, life insurance not exceeding the ceiling set by the Government, and the deductions specified in Articles 10 and 11 of this Law.

3. The time to determine taxable income from salaries and wages is the time when the organization or individual pays income to the taxpayer or the time when the taxpayer receives the income.

Article 9. Progressive tax rate schedule

1. The progressive tax rate schedule applies to taxable income as stipulated in Clause 2, Article 8 of this Law.

2. The progressive tax rate schedule is provided as follows:

Article 10. Family circumstance deduction

1. Family circumstance deduction is the amount deducted from taxable income before calculating tax on salary and wage income of the taxpayer who is a resident individual. Family circumstance deduction includes:

a) The deduction level for taxpayers is 15.5 million VND per month (186 million VND per year);

b) The deduction level for each dependent is 6.2 million VND per month.

2. Based on fluctuations in prices and income, the Government shall submit to the Standing Committee of the National Assembly regulations on the deduction level specified in Clause 1 of this Article in accordance with the socio-economic situation of each period.

3. The determination of the deduction level for dependents shall be carried out according to the principle that each dependent can only be deducted once for one taxpayer.

4. A dependent is a person whom the taxpayer is responsible for supporting, including:

a) Minor children; children who are legally incapacitated, disabled, or unable to work;

b) Individuals who have no income or have income not exceeding the level prescribed by the Minister of Finance, including adult children attending university, college, vocational high school, or vocational training; spouses who are unable to work; parents who are past working age or unable to work; other people without shelter whom the taxpayer must directly support.

Article 11. Deductions for charitable, humanitarian contributions, and other deductions

Resident individuals are allowed to deduct from taxable income before calculating tax on income from salaries and wages the following:

1. Charitable and humanitarian contributions, including:

a) Contributions to organizations or establishments that care for, nurture children in particularly difficult circumstances, people with disabilities, or elderly people without support;

b) Contributions to charitable funds, humanitarian funds, or scholarship funds;

c) Contributions to organizations with the function of mobilizing sponsorships that are established and operate according to the provisions of the law.

The organizations, establishments, and funds specified in this clause must be authorized by competent state agencies to be established or recognized, operating for charitable, humanitarian, or scholarship purposes, and not for profit.

2. Expenses for healthcare and education-training of the taxpayer and the taxpayer's dependents are deductible from income before tax calculation according to the rates prescribed by the Government.

3. The expenses specified in this Article must meet the invoice and documentation requirements according to the law and must not be paid from other sources.

4. The Government shall provide detailed regulations on this Article.

Article 12. Personal income tax on income from capital investment

1. Tax on income from capital investment of resident individuals is determined by multiplying taxable income by the tax rate of 5%.

2. Taxable income from capital investment is the total amount of taxable income from capital investment specified in Clause 3, Article 3 of this Law that the taxpayer receives each time it arises.

3. The time of determining taxable income from capital investment is the time when the organization or individual pays income to the taxpayer or the time when the taxpayer receives the income.

4. The Government shall provide detailed regulations on this Article.

Article 13. Personal income tax on income from capital transfer

1. Personal income tax on income from the transfer of capital of resident individuals is determined by multiplying the taxable income by a tax rate of 20% for each transfer. In which, taxable income from the transfer of capital is determined by the transfer price minus the purchase price and reasonable expenses related to generating income from the transfer of capital.

In cases where the purchase price and expenses related to the transfer of capital cannot be determined, personal income tax is calculated by multiplying the transfer price by a tax rate of 2%.

2. Personal income tax on income from securities transfer is determined by the transfer price multiplied by a tax rate of 0.1% for each transfer.

3. The time to determine taxable income is the time when the transaction is completed in accordance with the law.

4. The Government shall provide detailed regulations on this Article.

Article 14. Personal income tax on income from real estate transfer

1. Personal income tax on income from the transfer of real estate of resident individuals is determined by multiplying the transfer price by the tax rate of 2%.

2. The time of determining taxable income from the transfer of real estate is the time when the transfer contract takes effect according to the provisions of law or the time of registration of the right to use or ownership of real estate.

3. The government shall provide detailed regulations on this Article.

Article 15. Personal income tax on income from winnings

1. Personal income tax on income from winnings of resident individuals is determined by multiplying the taxable income by the tax rate of 10%.

2. Taxable income from winnings is the portion of the prize value exceeding 20 million VND that the taxpayer receives for each winning time.

3. The time of determining taxable income from winnings is the time when the organization or individual pays the income to the taxpayer.

Article 16. Personal income tax on income from royalties

1. Personal income tax on income from royalties of resident individuals is calculated by multiplying taxable income by the tax rate of 5%.

2. Taxable income from royalties is the portion of income exceeding 20 million VND that the taxpayer receives when transferring or licensing the use of intellectual property objects, or transferring technology under each contract.

3. The time to determine taxable income from royalties is the time when the organization or individual pays income to the taxpayer.

Article 17. Personal income tax on income from commercial franchising

1. Personal income tax on income from commercial franchising of resident individuals is calculated by multiplying taxable income by the tax rate of 5%.

2. Taxable income from franchise revenue is the portion of income exceeding 20 million VND that the taxpayer receives under each franchise agreement.

3. The time for determining taxable income from franchise revenue is the time when the organization or individual pays income to the taxpayer.

Article 18. Personal income tax on income from inheritance and gifts

1. Personal income tax on income from inheritance and gifts of a resident individual is determined by taxable income multiplied by a tax rate of 10%.

2. Taxable income from inheritance and gifts is the portion of the inherited or gifted asset value exceeding 20 million VND that the taxpayer receives each time it arises.

3. The time for determining taxable income is regulated as follows:

a) For income from inheritance, it is the time the taxpayer receives the inheritance;

b) For income from receiving gifts, it is the time when the organization or individual gives the gift to the taxpayer or the time when the taxpayer receives the income.

4. The Government shall provide detailed regulations on this Article.

Article 19. Personal income tax on other income

1. Personal income tax on other income of a resident individual specified in points a, b, and c of Clause 10, Article 3 of this Law is determined by multiplying taxable income by a tax rate of 5%. In which, taxable income is the portion of income exceeding 20 million VND that the taxpayer receives each time it arises.

2. Personal income tax on other income of a resident individual specified in points d and đ of Clause 10, Article 3 of this Law is determined by multiplying the transfer price by a tax rate of 0.1%.

3. The time to determine taxable income is the time when the organization or individual pays income to the taxpayer or the time when the taxpayer receives the income.

4. The Government shall provide detailed regulations on this Article.

Chapter III. BASIS FOR TAXATION FOR NON-RESIDENT INDIVIDUALS

Article 20. Personal income tax on business income

1. Personal income tax on business income of a non-resident individual is determined by the revenue from business activities specified in clause 2 of this Article multiplied by the tax rate specified in clause 3 of this Article.

2. Revenue is the total money from the sale of goods, processing, provision of services including subsidies, surcharges, and extra charges that the individual receives, regardless of whether the money has been received or not, including costs paid by the purchaser of goods or services on behalf of the non-resident individual that are not reimbursed.

In cases where the contract agreement does not include personal income tax, the taxable revenue must be converted as the total amount received by a non-resident individual in any form from the provision of goods or services in Vietnam, regardless of the location of business activities.

3. Tax rates:

a) Distribution, supply of goods: 1%;

b) Services, construction without material procurement: 5%;

c) Manufacturing, transportation, services associated with goods, construction with material procurement: 2%;

d) Activities providing digital content products and services related to entertainment, video games, digital movies, digital images, digital music, advertising: 5%;

đ) Other business activities: 2%.

Article 21. Personal income tax on income from salaries and wages

Personal income tax on income from salaries and wages of non-resident individuals is determined by the total amount of salaries and wages that the non-resident individual receives from performing work in Vietnam multiplied by (x) a tax rate of 20%, regardless of the place of income payment.

Article 22. Personal income tax on income from capital investment

Personal income tax on income from capital investment of non-resident individuals is determined by the total income that the non-resident individual receives from investing capital in organizations or individuals in Vietnam multiplied by (x) a tax rate of 5%.

Article 23. Personal income tax on income from capital transfer

1. Personal income tax on income from capital transfer of non-resident individuals is determined by taxable income multiplied by a 20% tax rate each time it arises, regardless of whether the transfer is carried out in Vietnam or abroad. In which, taxable income from capital transfer is determined by the transfer price minus the purchase price and reasonable expenses related to generating income from transferring capital in Vietnamese organizations or individuals.

In cases where the purchase price and expenses related to the capital transfer cannot be determined, personal income tax is determined by the transfer price of the capital in Vietnamese organizations or individuals multiplied by a 2% tax rate.

2. Personal income tax on income from securities transfer of non-resident individuals is determined by the transfer price multiplied by a 0.1% tax rate.

3. The government shall provide detailed regulations on this Article.

Article 24. Personal income tax on income from real estate transfers

1. Personal income tax on income from the transfer of real estate by non-resident individuals is determined by multiplying the transfer price by the tax rate of 2%.

2. The Government shall provide detailed regulations on this Article.

Article 25. Personal income tax on income from royalties and commercial franchising

1. Personal income tax on income from royalties of non-resident individuals is determined by multiplying the income exceeding 20 million VND for each contract transferring or granting the right to use objects of intellectual property, or transferring technology in Vietnam by the tax rate of 5%.

2. Personal income tax on income from commercial franchising of non-resident individuals is determined by multiplying the income exceeding 20 million VND for each commercial franchising contract in Vietnam by the tax rate of 5%.

Article 26. Personal income tax on income from winning prizes, inheritance, and gifts

Personal income tax on income from prizes, inheritance, and gifts of non-resident individuals is determined by the portion of the value exceeding 20 million VND for each occasion of winning a prize, receiving inheritance, or receiving a gift in Vietnam multiplied (x) by a tax rate of 10%.

Article 27. Personal income tax on other income

1. Personal income tax on other income of non-resident individuals specified in points a, b, and c, Clause 10, Article 3 of this Law is determined by taxable income multiplied (x) by a tax rate of 5%. Taxable income is the portion of income exceeding 20 million VND that the taxpayer receives for each occurrence.

2. Personal income tax on other income of non-resident individuals specified in points d and đ, Clause 10, Article 3 of this Law is determined by the transfer value multiplied (x) by a tax rate of 0.1%.

3. The government shall provide detailed regulations on this Article.

Article 28. The time to determine taxable income

1. The time for determining taxable income for income stipulated in Article 20 of this Law is the time when a non-resident individual receives income or the time of issuing an invoice for the sale of goods or provision of services.

2. The time for determining taxable income for income stipulated in Articles 21, 22, 25, 26, and 27 of this Law is the time when organizations or individuals in Vietnam pay income to non-resident individuals or the time when non-resident individuals receive income.

3. The time for determining taxable income for income stipulated in Article 23 of this Law is the time when the transaction is completed according to the provisions of the law.

4. The time for determining taxable income for income stipulated in Article 24 of this Law is the time when the transfer contract takes effect according to the provisions of the law or the time of registering the right to use or the ownership of real estate.

5. The government shall provide detailed regulations on this Article.

Chapter IV. IMPLEMENTING PROVISIONS

Article 29. Implementation provisions

1. This Law takes effect from July 1, 2026, except for the provisions in clause 2 of this Article.

2. The provisions related to income from business, salaries, and wages of resident individuals apply from the 2026 tax year.

3. Personal Income Tax Law No. 04/2007/QH12 has been amended and supplemented in certain articles by Law No. 26/2012/QH13, Law No. 71/2014/QH13, Law No. 31/2024/QH15, Law No. 48/2024/QH15, Law No. 56/2025/QH15, Law No. 71/2025/QH15, Law No. 93/2025/QH15, and shall cease to be effective from the date this Law takes effect; specifically, the provisions related to income from business and from salaries and wages of resident individuals shall cease to be effective from the 2026 tax calculation period.

4. In case of different provisions on tax incentives between this Law and the Capital Law, resolutions of the National Assembly, and the measures specified in point h, Clause 8, Article 10 of the Law on Government Organization, the provisions of the Capital Law, resolutions of the National Assembly, and the measures specified in point h, Clause 8, Article 10 of the Law on Government Organization shall apply. If the provisions in this Law offer more favorable incentives, taxpayers may choose to apply the most beneficial incentive rate.

This law was approved by the National Assembly of the Socialist Republic of Vietnam, 15th Legislature, 10th Session, on December 10, 2025.