Official Document 226/GLA-QLDN1 Issued by the Gia Lai Provincial Tax Department on January 20, 2026, this is an important legal document clarifying the implementation of the Personal Income Tax Law 2025. In this context... Personal Income Tax Law No. 109/2025/QH15 Now that it officially comes into effect, businesses need to understand how to determine tax-exempt income for night shift pay, overtime pay, and pay for non-vacation days.
The issuance of Circular 226/GLA-QLDN1 reflects a positive change in tax policy aimed at encouraging labor efforts and supporting real income. According to the guidelines, the 2026 tax year will mark a major turning point as all overtime and night shift wages will be included in the category of completely tax-exempt income, instead of only the difference as under the old regulations. Below is a detailed analysis from the MAN – Master Accountant Network team of experts.
Legal basis and validity of Official Letter 226/GLA-QLDN1
Official document 226/GLA-QLDN1 is based on the latest regulations of the 2025 Personal Income Tax Law. This document directly addresses the difficulties businesses face regarding the transition of tax policies between the old and new law implementation periods, ensuring consistency in tax law enforcement at the local and national levels.
Regulations stipulated in the Personal Income Tax Law 2025
According to Article 4 of the 2025 Personal Income Tax Law, the list of tax-exempt income has been significantly expanded. Clause 8 of this Article clearly stipulates:
“"Night shift pay, overtime pay, wages and salaries paid for days not taken as leave as prescribed by law"It falls under the tax exemption category. This is the highest legal basis cited in Official Letter 226/GLA-QLDN1.
The effective date is as per Official Letter 226/GLA-QLDN1.
Official document 226/GLA-QLDN1 emphasizes Clause 2, Article 29 of the 2025 Personal Income Tax Law, according to which regulations related to income from salaries and wages of resident individuals will apply from the tax period of 2026. This means that income generated from January 1, 2026 to December 31, 2026 will fully benefit from the new tax incentives as stipulated.
Details of income exempt from personal income tax according to Official Letter 226/GLA-QLDN1
The core content of Official Letter 226/GLA-QLDN1 lies in clearly defining the scope of income exempt from tax. This is completely different from the previous Circular 111/2013/TT-BTC, which only exempted the portion of salary paid in excess of normal working days. The new regulation simplifies calculations for the accounting department.
Overtime and night shift pay
Based on Official Letter 226/GLA-QLDN1, all overtime and night shift wages paid in 2026 will not be included in the calculation. taxable income. Businesses need to ensure that accounting records are kept separate and that attendance records are clearly stored in order to accurately manage these expenses when filing tax returns.
Salary paid for days not taken as leave.
A notable new point in Circular 226/GLA-QLDN1 is the confirmation that wages paid for days when employees do not take leave are also tax-exempt. This is income that was previously subject to full taxation. According to Circular 226/GLA-QLDN1, this change ensures fairness and encourages employee responsibility in important projects.
| Income type | Old regulations (before 2026) | Regulations as per Official Letter 226/GLA-QLDN1 |
| Overtime | Only the higher difference is waived. | Tax exemption 100% on the amount received |
| Working at night | Only the difference is waived. | Tax exemption 100% on the amount received |
| Unpaid leave pay | Subject to personal income tax 100% | Tax Free 100% |
| Hazardous work allowance | Exemption based on quotas | Exemption as per specialized legal regulations |
Individuals liable for personal income tax in the 2026 tax year.
Besides providing guidance on tax-exempt income, Circular 226/GLA-QLDN1 also reiterates regulations on taxpayer eligibility. Correctly identifying taxpayers helps businesses accurately deduct taxes at source, minimizing errors in monthly and quarterly tax reports.
Resident Individual
According to Official Letter 226/GLA-QLDN1, a resident individual is someone who has been present in Vietnam for 183 days or more, or has a permanent residence as registered or under a rental contract. For this group, personal income tax It is calculated based on total income earned both within and outside the territory of Vietnam, after deducting tax-exempt amounts as stipulated by law.
Non-resident individual
For non-resident individuals, Circular 226/GLA-QLDN1 notes that they only pay tax on income earned in Vietnam. However, overtime pay incentives under the 2025 Personal Income Tax Law still apply equally if that income originates from work performed within the territory of Vietnam.
Determining taxable income from salaries and wages.
Accurately determining taxable income is a crucial step. Circular 226/GLA-QLDN1 requires accountants to exclude tax-exempt income (such as overtime pay, night shift pay) before applying personal deductions to calculate the final tax payable.
Common types of taxable income
Although there are many tax exemptions according to Official Letter 226/GLA-QLDN1, the following items are still subject to tax:
- Basic monthly salary/wage as per contract.
- Sales bonuses and holiday bonuses are not exempt from this category.
- Other monetary or non-monetary benefits paid by the organization on behalf of the individual.
Method of income separation according to Official Letter 226/GLA-QLDN1
To correctly implement Circular 226/GLA-QLDN1, the human resources and accounting departments need to coordinate in preparing detailed payroll records. Clearly recording overtime and night shift hours is crucial legal evidence during tax audits. This helps protect the business from future legal risks.
The importance of Official Letter 226/GLA-QLDN1 for corporate governance.
The issuance of Circular 226/GLA-QLDN1 is not only a technical guideline but also has significant implications for human resource management. Businesses can leverage this policy to optimize salary costs and increase real income for employees without increasing the tax burden for both parties.
Optimizing income for workers.
Through Official Letter 226/GLA-QLDN1, employees receive the full reward for overtime work. This creates a strong incentive for employees to stay committed, especially in high-intensity production industries. This is an effective talent retention solution that businesses should focus on implementing as guided.
Minimize the risk of errors in tax settlement.
Properly applying Circular 226/GLA-QLDN1 helps businesses avoid the risk of tax arrears and administrative penalties. Misunderstanding the effective date or scope of tax exemptions can lead to financial losses. Therefore, timely updating of documents such as Circular 226/GLA-QLDN1 is a mandatory requirement for professional accountants.
Conclude
Official document 226/GLA-QLDN1 serves as an important "guideline" to help businesses correctly implement the personal income tax exemption policy from 2026. Early understanding of these regulations helps businesses proactively plan their finances and human resources, ensuring maximum benefits for employees in accordance with the spirit of the 2025 Personal Income Tax Law.
To be in-depth consultation For information on how to apply Circular 226/GLA-QLDN1 and optimize tax costs, please contact MAN – Master Accountant Network immediately. We provide auditing services., tax accounting and tax reporting Professionalism helps businesses operate with peace of mind and achieve sustainable growth.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
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- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about Official Document 226/GLA-QLDN1
Circular 226/GLA-QLDN1 stipulates the preferential treatment applicable to the 2026 tax period. Normally, personal income tax is calculated based on the time of income payment. If the salary is paid in 2026, businesses need to carefully compare it with the supplementary circular guidelines to correctly apply the transitional rules.
Although issued by the Gia Lai Tax Department, the content of Official Letter 226/GLA-QLDN1 is based on the 2025 Personal Income Tax Law applicable nationwide. Therefore, businesses outside the province can completely use this document as an official reference to develop salary calculation plans for 2026. Are overtime wages paid in 2025 but disbursed in 2026 exempt from tax according to Official Letter 226/GLA-QLDN1?
Does Official Document 226/GLA-QLDN1 apply to businesses outside of Gia Lai province?
