Official document No. 561/TPHCM-QLDN3 Issued by the Ho Chi Minh City Tax Department on January 16, 2026, this document is a key guideline to help businesses understand the implementation roadmap. Personal Income Tax Law 2025. The transition from a seven-tier tax system to a five-tier progressive tax system is a major turning point, directly impacting the financial obligations of millions of workers from the 2026 tax year onwards.
Understanding the content of Official Letter No. 561/TPHCM-QLDN3 in a timely manner helps accountants comply with the law and optimize tax benefits for personnel. The combination of Personal Income Tax Law No. 109/2025/QH15 and Decree 20/2026/ND-CP creates a new legal framework for professionals and the creative startup sector. Let's analyze the details of the innovations and the most accurate calculation methods below.
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The roadmap for applying the progressive tariff schedule is outlined in Official Letter No. 561/TPHCM-QLDN3.
According to Official Letter No. 561/TPHCM-QLDN3, the new regulations on tax rates for income from salaries of resident individuals will officially take effect for the tax year 2026. Income generated from January 1, 2026, will be calculated according to the new 5-tier structure, simplifying procedures and reducing tax burden for the middle-income group.
The Ho Chi Minh City Tax Department emphasizes that the time for determining taxable income is when the organization or individual pays the income. Therefore, businesses need to proactively adjust their accounting software systems to be compatible with the new tax schedule. This helps avoid errors in monthly tax reports and year-end settlements, in accordance with the spirit of Official Letter No. 561/TPHCM-QLDN3.
The table below details the tax brackets according to Article 9 of the Personal Income Tax Law 2025, as guided by Official Letter No. 561/TPHCM-QLDN3:
| 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% |
This change broadens the income bracket at the lower end, reducing the amount of tax payable for those with taxable income below 30 million VND/month. Circular No. 561/TPHCM-QLDN3 serves as a "guideline" for local tax authorities to standardize implementation across the entire area.
Regulations on taxable income from salaries and wages
Official document No. 561/TPHCM-QLDN3 clarifies the method for determining taxable income under the new law. Taxable income is the remaining taxable income after deducting mandatory insurance contributions, supplementary retirement insurance, life insurance (within the prescribed limits), and other deductions. personal allowance.
Specifically, the calculation formula personal income tax The following will apply from 2026:
|
Personal income tax payable = Taxable income × Tax rate (according to the corresponding bracket) |
Businesses need to refer to Official Letter No. 561/TPHCM-QLDN3 to correctly identify deductible specific occupational insurance contributions. This ensures accurate calculation of monthly withholding tax for employees.
Personal income tax exemption/reduction according to Decree 20/2026/ND-CP and contact Official Letter No. 561/TPHCM-QLDN3
The government has issued Decree 20/2026/ND-CP stipulating tax incentives for the science and technology and startup sectors. This is important supplementary content that needs to be understood in parallel with Official Letter No. 561/TPHCM-QLDN3 to accurately apply it to specific target groups.
Eligibility and conditions for tax incentives
Decree 20 supports experts and scientists working in innovative startup businesses. The incentives include: exemption from 100% tax for the first two years (24 months) and a reduction of 50% tax for the following four years (48 months). This incentive only applies to income from salaries received at innovative startup organizations.
The tax exemption period is calculated continuously from the month in which the preferential income is generated. Circular No. 561/TPHCM-QLDN3 notes that even with the application of the new 5-tier tax schedule, the calculation of the tax exemption must still adhere to the principle of allocating the actual income proportionally if an individual works in multiple places.
How to calculate tax for individuals with income from two sources according to Decree 20.
When a professional receives both a salary from a startup and income from other sources, the accountant applies the following formula:
- Tax exemption amount = (Total tax calculated on total income) × (Preferential income / Total taxable income).
- Tax reduction amount = 50% × (Total tax calculated on total income) × (Preferential income / Total taxable income).
This approach ensures fairness and encourages experts to contribute to research. Official document No. 561/TPHCM-QLDN3 confirms the tax rate framework applied in the above-mentioned "Total Tax" calculation formula.
Two types of income are completely tax-exempt under the new regulations.
Based on Article 8 of Decree 20/2026/ND-CP, there are two specific income groups that will be exempt from personal income tax in order to promote the capital market:
- Income from transferring equity stakes in startups: Individuals divesting from innovative startups are exempt from all personal income tax. This new provision strongly attracts angel investors to the Vietnamese market.
- Salaries for experts and scientists: This income is waived for 24 months if working at R&D centers or startup support organizations.
Official document No. 561/TPHCM-QLDN3 reminds the paying unit to retain expert records and confirmation from the management agency to ensure that tax exemptions are granted to the correct recipients.
Important notes when implementing Official Letter No. 561/TPHCM-QLDN3
The implementation of Circular No. 561/TPHCM-QLDN3 often encounters difficulties regarding the timing of data cutoff. The transition between 2025 and 2026 requires absolute accuracy in document classification to apply the correct corresponding tax rates.
The Ho Chi Minh City Tax Department, through Official Letter No. 561/TPHCM-QLDN3, confirmed that year-end bonuses for 2025 but paid in January 2026 will be calculated according to the 5-tier tax schedule. This is beneficial information, significantly reducing the amount of tax for employees on large bonuses during the Tet holiday.
Conclude
Official Document No. 561/TPHCM-QLDN3 is an important step towards a transparent tax policy. The five-tier tax system helps reduce the financial burden and facilitates business management. However, implementing the spirit of Official Document No. 561/TPHCM-QLDN3 and Decree 20 correctly requires a deep understanding of the law.
MAN – Master Accountant Network is a leading provider of auditing services, tax accounting and tax consulting. We are committed to supporting businesses in achieving their goals. tax settlement and tax reporting This is in accordance with Official Letter No. 561/TPHCM-QLDN3. Please contact MAN to optimize costs and ensure full compliance with the 2026 Personal Income Tax regulations.
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 Document No. 561/TPHCM-QLDN3
This guideline applies to resident individuals with salary income in Ho Chi Minh City and serves as a reference for the entire country starting from the 2026 tax year.
Official document No. 561/TPHCM-QLDN3 focuses on tax rates. The personal allowance will be implemented according to a separate resolution of the Standing Committee of the National Assembly.
After a two-year tax exemption, the expert is entitled to a reduction of 50% in the amount of tax payable for the following four years, as stipulated in Decree 20. To whom does Official Document No. 561/TPHCM-QLDN3 apply?
Does the personal allowance change along with the 5-tier tax system?
For how long are professionals eligible for a 50% tax reduction?
