Official document No. 2167/DON-QLDN1 The February 3, 2026, guidance from the Dong Nai Provincial Tax Department is a key guideline regarding personal income tax deductions at the beginning of 2026. In this context... Law No. 109/2025/QH15 Once the new tax schedule comes into effect, businesses need to understand the timing for determining taxable income. Applying the correct tax schedule helps optimize costs for employees and minimize the risk of reporting errors.
Official Letter No. 2167/DON-QLDN1 clarifies the relationship between the time of income payment and the 2026 tax period. Although the 2025 Personal Income Tax Law will take effect from July 1, 2026, the regulations on resident salaries will be prioritized for application from the beginning of 2026. Accountants should note this point when preparing payrolls to protect the best interests of taxpayers.
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Legal basis and validity of Official Letter No. 2167/DON-QLDN1
The issuance of Official Letter No. 2167/DON-QLDN1 is based on the systemic changes in Law No. 109/2025/QH15. The document relies on Articles 8, 9, and 29 to address concerns regarding the effective date of the new tax schedule. This is the official reference document for businesses in Dong Nai and neighboring areas to standardize tax calculation methods from the beginning of 2026.
Time of determining taxable personal income
According to Clause 3, Article 8 of Law No. 109/2025/QH15 and Official Letter No. 2167/DON-QLDN1, the time of determining income is when the organization pays the income to the individual. Therefore, the December 2025 salary, if paid in January 2026, will still be included in the 2026 tax period. This requires the accounting department to accurately classify the actual time of cash disbursement.
Regulations on the implementation of the Personal Income Tax Law 2025
Although the general effective date is July 1, 2026, income from resident salaries will still be applied to the entire 2026 tax period. Official Letter No. 2167/DON-QLDN1 confirms that the new progressive tax schedule will have retroactive effect from January 1, 2026. Thanks to this guidance, employees will benefit from preferential tax rates and wider tax brackets sooner than the general schedule.
Details of the progressive tax rate schedule are provided in Official Letter No. 2167/DON-QLDN1.
Official document No. 2167/DON-QLDN1 provides guidance on the application of the new tax rate schedule in Article 9 of Law No. 109/2025/QH15. Compared to the old regulations, this tax schedule expands the income brackets, reducing the tax burden for the middle-income group. Below is a detailed data table. progressive personal income tax rate Applicable for the year 2026 according to the guidance of the Tax Department.
| Tax rates | Taxable income/year (Million VND) | Taxable income/month (Million VND) | Tax rate (%) |
| 1 | Up to 120 | Up to 10 | 5% |
| 2 | Over 120 to 360 | Between 10 and 30 | 10% |
| 3 | Over 360 to 720 | Between 30 and 60 | 20% |
| 4 | Between 720 and 1,200 | Between 60 and 100 | 30% |
| 5 | Over 1,200 | Over 100 | 35% |
Based on the data from Official Letter No. 2167/DON-QLDN1, the tax brackets have widened significantly. For example, at bracket 2, monthly income must reach 30 million VND to be subject to tax rate 10%, instead of the previous lower rate. This change directly benefits employees' cash flow during annual tax settlement.
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How to determine taxable income from salaries and wages according to Official document No. 2167/DON-QLDN1
According to Official Letter No. 2167/DON-QLDN1, the tax calculation structure remains unchanged, but the tax rate parameters have been updated. Accountants need to accurately determine insurance contributions and personal deductions before applying the tax schedule. Inaccuracies in this step will lead to chain errors throughout the entire payroll.
Deductible amounts before tax calculation
Taxpayers are allowed to deduct mandatory social insurance, health insurance, unemployment insurance, and professional liability insurance. Circular No. 2167/DON-QLDN1 also notes the deduction of voluntary retirement fund contributions or life insurance premiums within the prescribed limits. These deductions require valid documentation to be accepted by the tax authorities during audits.
Actual deduction time
When paying January 2026 salaries at the end of the month or the beginning of February, businesses must deduct taxes according to the new progressive tax rate schedule. Circular No. 2167/DON-QLDN1 clarifies: Because it falls under the 2026 tax period, businesses are not allowed to use the 2025 tax rate schedule. Adhering to the correct timing helps avoid complex adjustments and late payment penalties later on.
Income categories exempt from tax under the new 2025 Law.
In addition to the tax schedule, Official Letter No. 2167/DON-QLDN1 reiterates the tax exemption regulations in Article 4 of the Personal Income Tax Law 2025. Understanding this list helps accountants correctly exclude non-taxable items. This not only reduces the financial burden on employees but also ensures the transparency of the company's tax settlement records.
- Real estate: Transfers between immediate family members (spouses, father and son, siblings).
- Agriculture: Direct income from livestock farming and crop cultivation that has not undergone deep processing.
- Deposits & Insurance: Interest earned on bank deposits and interest from life insurance policies.
- Overtime pay: Any salary paid above the regular daily rate is completely tax-exempt.
- Remittances: Legitimate remittances from overseas to individuals within the country.
Applying the correct tax exemption categories as per Official Letter No. 2167/DON-QLDN1 ensures legal fairness. Experts at MAN – Master Accountant Network advise businesses to maintain complete supporting documentation. Lack of documentation for tax exemptions is a common error often resulting in retroactive tax collection during tax settlement.
Risk analysis when not updating Official Letter No. 2167/DON-QLDN1
Delays in updating Official Letter No. 2167/DON-QLDN1 lead to the risk of over- or under-deducting taxes for employees. Incorrect tax rate calculations cause internal complaints and result in discrepancies in monthly/quarterly tax returns. Businesses may face late payment penalties and administrative fines from the tax authorities due to errors in tax calculation.
Compliance risks
The Dong Nai Provincial Tax Department, through Official Letter No. 2167/DON-QLDN1, has sent a clear message regarding the enforcement of the law. Applying the old tax schedule to income in 2026 will be considered an act of incorrect tax declaration. Accountants need to proactively update their payroll software as soon as this document provides official guidance from the management agency.
Impact on an individual's cash flow.
Applying the correct tax schedule according to Official Letter No. 2167/DON-QLDN1 helps personal income tax The income of many employees has decreased. This increases net income, improves employee satisfaction with the organization, and affirms the prestige and professional competence of the human resources and accounting department within the company.
Professional tax and accounting consulting services from MAN
In the context of changing policies as outlined in Official Letter No. 2167/DON-QLDN1, having a consulting firm to assist you is essential. MAN – Master Accountant Network proudly offers comprehensive tax and accounting solutions for businesses. We help you standardize processes and minimize any potential legal risks.
Our core service packages include:
- Auditing: Ensure transparency and honesty in the annual financial report.
- Accountant & Tax reporting: Instantly update documents such as Official Letter No. 2167/DON-QLDN1.
- Tax Consulting Tax settlement: Optimize tax payments and represent clients in dealings with government agencies.
With a dedicated team of experts, MAN is committed to providing clients with absolute legal peace of mind. We not only process data but also advise on strategies based on the latest regulations, such as Official Letter No. 2167/DON-QLDN1. Let MAN help your business manage tax risks most effectively.
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Conclude
Official document No. 2167/DON-QLDN1 resolves the transition bottleneck between the two periods of application of the Personal Income Tax Law. Clearly defining the January 2026 salary according to the new tax schedule helps businesses proactively manage their human resources. Strictly adhering to this guidance demonstrates the professionalism and responsibility of the unit towards the law.
We hope this analysis of Official Letter No. 2167/DON-QLDN1 is valuable to our readers. If you encounter difficulties in implementing the new regulations, please contact MAN – Master Accountant Network. We are ready to assist with audit services., tax accounting and tax settlement In-depth expertise helps businesses take firm steps towards sustainable growth.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- 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 Letter No. 2167/DON-QLDN1
According to Official Letter No. 2167/DON-QLDN1, the payment date determines the tax schedule. Since payment is due in January 2026, the new progressive tax schedule for 2026 must be applied.
Official document No. 2167/DON-QLDN1 focuses on the tax rate schedule. The personal allowance is implemented according to Articles 10 and 11 of the new Law. Businesses need to update both the tax rate schedule and the allowance rates simultaneously to calculate accurately.
Although it is a local document, Official Letter No. 2167/DON-QLDN1 is based on the nationwide Tax Law. Therefore, other units can fully refer to it to standardize the method of calculating personal income tax. Which tax rate applies to salaries paid in December 2025, with payment due in January 2026?
Will the personal allowance amount change according to the guidelines in the official document?
Do businesses outside of Dong Nai province refer to this document?
