{"id":10607,"date":"2026-01-10T03:27:39","date_gmt":"2026-01-10T03:27:39","guid":{"rendered":"https:\/\/visgl.com\/?p=10607"},"modified":"2026-01-10T03:27:39","modified_gmt":"2026-01-10T03:27:39","slug":"new-tax-policy-updates-to-take-effect-from-january-1-2026","status":"publish","type":"post","link":"https:\/\/visgl.com\/new-tax-policy-updates-to-take-effect-from-january-1-2026\/","title":{"rendered":"New Tax Policy Updates to Take Effect from January 1, 2026"},"content":{"rendered":"

With the increase in personal and dependent deductions, millions of individuals are expected to see a reduction in personal income tax compared to current regulations.<\/b><\/p>\n

\"\"<\/p>\n

Income of VND 17 million per month will no longer be subject to personal income tax<\/b><\/h3>\n

The amended Personal Income Tax Law will officially take effect from <\/span>July 1, 2026<\/b>. However, provisions related to income from business activities, salaries, and wages of resident individuals will be applied earlier, starting from the <\/span>2026 tax year<\/b>, meaning <\/span>January 1, 2026<\/b>.<\/span><\/p>\n

Under the new law, the deduction for taxpayers will increase from <\/span>VND 11 million to VND 15.5 million per month<\/b>, equivalent to <\/span>VND 186 million per year<\/b>. Meanwhile, the deduction for each dependent will rise from <\/span>VND 4 million to VND 6.2 million per month<\/b>.<\/span><\/p>\n

\"\"<\/p>\n

With the revised family deduction levels, a single individual earning <\/span>VND 17 million per month<\/b> will not be required to pay personal income tax from next year (<\/span>VND 15.5 million + VND 1.55 million = VND 17.05 million<\/b>), resulting in a tax reduction of <\/span>VND 210,000 per month<\/b> compared to current regulations.<\/span><\/p>\n

At the same time, each dependent qualifies for a <\/span>VND 6.2 million per month<\/b> deduction. This means that an individual with one dependent earning <\/span>VND 24 million per month<\/b> will not be subject to personal income tax, saving <\/span>VND 610,000 per month<\/b> compared to the current policy.<\/span><\/p>\n

The amended law also expands deductible expenses, including charitable and humanitarian contributions, as well as healthcare and education expenditures for taxpayers and their dependents.<\/span><\/p>\n

Progressive tax brackets reduced to five levels<\/b><\/h3>\n

Another notable change in the amended Personal Income Tax Law is the simplification of the progressive tax schedule, reducing it from <\/span>seven brackets to five<\/b>, while also widening the income ranges between brackets.<\/span><\/p>\n

\"\"<\/p>\n

Accordingly, the applicable tax rates will be <\/span>5%, 10%, 20%, 30%, and 35%<\/b>. The <\/span>5% rate<\/b> applies to taxable income of up to <\/span>VND 10 million per month<\/b>, while the highest rate of <\/span>35%<\/b> applies to income exceeding <\/span>VND 100 million per month<\/b>.<\/span><\/p>\n

The new tax schedule is assessed to reduce tax obligations for all individuals currently paying taxes under existing brackets.<\/span><\/p>\n

With the revised structure, all taxpayers subject to personal income tax will benefit from lower tax liabilities compared to the current system.<\/span><\/p>\n

The new schedule also addresses abrupt increases between certain brackets, ensuring a more\u5408\u7406 and balanced progressive tax structure.<\/span><\/p>\n

For the highest bracket (Bracket 5), the tax rate remains at <\/span>35%<\/b>. The Government stated that this is a moderate rate, neither too high nor too low, when compared internationally and within the ASEAN region. Several neighboring countries such as <\/span>Thailand, Indonesia, and the Philippines<\/b> also apply a top marginal tax rate of <\/span>35%<\/b>, while <\/span>China<\/b> applies a rate of <\/span>45%<\/b>.<\/span><\/p>\n

Increase in special consumption tax on alcohol and beer<\/b><\/h3>\n

The <\/span>Special Consumption Tax Law 2025<\/b> will take effect from <\/span>January 1, 2026<\/b>, with policies aimed at regulating the consumption of products harmful to health, such as tobacco, beer, alcohol, and sugar-containing products.<\/span><\/p>\n

For tobacco products, the law maintains the current ad valorem tax rate of <\/span>75%<\/b> and introduces an additional specific tax under a <\/span>five-year roadmap from 2027 to 2031<\/b>.<\/span><\/p>\n

For alcohol and beer, the law increases the ad valorem tax rate by <\/span>5% per year<\/b> over a <\/span>five-year period from 2027 to 2031<\/b>.<\/span><\/p>\n

\"\"<\/p>\n

For soft drinks meeting Vietnamese National Standards (TCVN) with sugar content exceeding <\/span>5g per 100ml<\/b>, the tax rate will be <\/span>8% from 2027<\/b> and <\/span>10% from 2028<\/b>.<\/span><\/p>\n

Notably, under current regulations, all air conditioners with a capacity of <\/span>90,000 BTU or less<\/b> are subject to special consumption tax.<\/span><\/p>\n

However, from <\/span>January 1, 2026<\/b>, only air conditioners with a capacity <\/span>above 24,000 BTU up to 90,000 BTU<\/b> will fall under the scope of this tax.<\/span><\/p>\n

Follow Vis Global Quality Control to stay updated with the latest Regulations News.<\/i><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

With the increase in personal and dependent deductions, millions of individuals are expected to see a reduction in personal income tax compared to current regulations….<\/p>\n","protected":false},"author":1,"featured_media":10608,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1783],"tags":[],"class_list":["post-10607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulations-news"],"taxonomy_info":{"category":[{"value":1783,"label":"Regulations News"}]},"featured_image_src_large":["https:\/\/visgl.com\/wp-content\/uploads\/2026\/01\/new-tax-policy-updates-to-take-effect-from-january-1-2026-1.jpg",1200,628,false],"author_info":{"display_name":"admin","author_link":"https:\/\/visgl.com\/author\/admin\/"},"comment_info":0,"category_info":[{"term_id":1783,"name":"Regulations News","slug":"regulations-news","term_group":0,"term_taxonomy_id":1783,"taxonomy":"category","description":"","parent":0,"count":53,"filter":"raw","cat_ID":1783,"category_count":53,"category_description":"","cat_name":"Regulations News","category_nicename":"regulations-news","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/posts\/10607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/comments?post=10607"}],"version-history":[{"count":0,"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/posts\/10607\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/media\/10608"}],"wp:attachment":[{"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/media?parent=10607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/categories?post=10607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/visgl.com\/wp-json\/wp\/v2\/tags?post=10607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}