Latest Updates on Vietnam’s Personal Income Tax 2025: How much salary is taxable?

At the 8th session of the 15th National Assembly, lawmakers passed Law No. 56/2024/QH15, which amends and supplements several laws, including the Law on Personal Income Tax (PIT). This is a notable update as it directly affects employees’ tax obligations.

1. Applicable legal documents on PIT in 2025

Currently, PIT is applied under the following legal documents:

• Law on Personal Income Tax 2007.
• Law amending and supplementing the PIT Law 2012.
• Law amending certain tax laws 2014.
• Law No. 56/2024/QH15 (2024).
• Resolution 954/2020/UBTVQH14 (on adjusting family deduction levels).

Thus, as of now, no new PIT law has been entirely enacted, only amended provisions are in effect.

2. Family deductions

According to Resolution 954/2020/UBTVQH14, current family deduction levels are:

• 11 million VND/month (132 million VND/year) for taxpayers.
• 4.4 million VND/month for each dependent.

3. Salary thresholds for PIT liability

• For employees with labor contracts of 3 months or more:

  • Tax applies if monthly income exceeds 11 million VND (after mandatory insurance and deductions).
  • With dependents, the taxable salary threshold is higher:
    • Over 15.4 million VND/month (with 1 dependent).
    • Over 19.8 million VND/month (with 2 dependents).

• For employees without contracts or with contracts under 3 months:

  • If total income is from 2 million VND per payment, the payer must withhold 10% PIT.
  • However, taxpayers can file a commitment if their actual taxable income does not reach the taxable threshold, to temporarily avoid withholding.

4. Allowable deductions when calculating PIT

Based on Circular 111/2013/TT-BTC (amended by Circular 92/2015/TT-BTC), deductions include:

• Family deductions.
• Mandatory insurance contributions (social, health, unemployment, professional liability).
• Voluntary pension fund contributions (up to 1 million VND/month).
• Charitable, humanitarian, and educational contributions made to eligible organizations/funds.

Summary: In 2025, employees with monthly income exceeding 11 million VND (no dependents) or over 15.4 million VND (with one dependent) are liable for PIT. Family deductions remain unchanged under Resolution 954/2020/UBTVQH14.