The Personal Income Tax Law of 2026 officially comes into effect based on the landmark changes to Law No. 109/2025/QH15, passed by the National Assembly on December 10, 2025. This is a crucial legal framework directly affecting the tax obligations of millions of individual businesses and the operational strategies of accounting and auditing firms in the new fiscal year. The increase in deductions and changes to the tax calculation method aim not only to increase budget revenue but also to create a favorable environment for the sustainable development of the digital economy.
The implementation of the Personal Income Tax Law 2026 will impact a range of new industries such as e-commerce, carbon credits, and digital assets. This is evidenced in Article 1 of the law. Law No. 109/2025/QH15 This demonstrates a significant shift from traditional management thinking to digital-based management. This requires accounting teams in businesses to stay up-to-date with relevant regulations and guidelines to ensure compliance and mitigate legal risks. Let's explore these changes in detail with MAN – Master Accountant Network.
Key new features of the Personal Income Tax Law 2026
The enactment of the Personal Income Tax Law 2026 marks the biggest change in tax policy for resident individuals in over a decade. The focus of this revision is on raising the tax threshold and diversifying declaration methods, helping to alleviate the burden on small businesses.
Changes to the taxable revenue threshold for individual business owners.
Previously, the taxable revenue threshold was often set at a low level, but with the Personal Income Tax Law of 2026, resident individuals engaged in production and business activities with annual revenue of 500 million VND or less will be completely exempt from tax. This is a breakthrough aimed at stimulating consumer demand and supporting economic recovery after a period of volatility.
The National Assembly also clearly stipulates in the Personal Income Tax Law 2026 the right to adjust this revenue threshold. Depending on the consumer price index (CPI) and the socio-economic situation of each period, the competent authority can flexibly change it to ensure fairness and suitability to the actual income of the people.
New tax calculation mechanism for revenue exceeding 500 million VND.
When studying Law Personal income tax In 2026, accounting professionals need to pay particular attention to two methods of calculating taxes for individuals with revenue exceeding a certain threshold. The law allows taxpayers to choose the most optimal method for their business operations, depending on their ability to prove input costs.
Method 1: Calculating tax based on taxable income (Revenue – Expenses)
This method is typically used for entities with complete accounting records. According to the Personal Income Tax Law 2026, tax rates are progressive based on different revenue levels to ensure fair regulation across business sizes.
| Annual revenue | Tax rate | Applicable subjects (according to the Personal Income Tax Law 2026) |
| Over 500 million to 3 billion VND | 15% | Individuals engaged in business activities must have sufficient invoices and expense documents. |
| Over 3 billion - 50 billion VND | 17% | Medium-sized businesses |
| Over 50 billion VND | 20% | Large-scale individual businesses, chain stores |
Legal justification from the Personal Income Tax Law 2026 shows that this calculation method encourages individuals to be transparent about operating costs, thereby promoting professionalization in the financial management of household businesses.
Calculation Method 2: Direct Tax Rate on Revenue (For revenue up to 3 billion VND)
This method simplifies administrative procedures to the maximum extent. Taxpayers under the Personal Income Tax Law 2026 only need to multiply the portion of revenue exceeding 500 million VND by the corresponding tax rate for each industry.
| Business sectors | Direct tax rate | Notes from the Personal Income Tax Law 2026 |
| Distribution and supply of goods | 0,5% | Applicable to revenue exceeding 500 million. |
| Services, construction (excluding materials procurement) | 2,0% | Specifically for property leasing, insurance agents, and multi-level marketing: 5% |
| Production, transportation, and construction that includes material procurement. | 1,5% | Supply and construction combination |
| Digital information content services | 5,0% | Games, entertainment, movies, photos, music, advertising |
| Other business activities | 1,0% | Occupations not included in the above list |
The application of the 5% tax rate to digital content services in the Personal Income Tax Law 2026 reflects efforts to manage revenue from cross-border platforms, a rapidly growing economic sector in Vietnam.
Personal Income Tax Law 2026: Adding categories of taxable income in the digital age.
The Personal Income Tax Law of 2026 not only changes the calculation method but also expands the scope of regulation to include new types of assets and activities. This helps the tax legal system move closer to international standards for managing the digital economy.
Income from e-commerce and digital platforms
One of the highlights of the 2026 Personal Income Tax Law is the official classification of income from e-commerce businesses as taxable. Individuals selling goods on TikTok, Shopee, or Facebook will have to fulfill their tax obligations according to the new regulations if their revenue exceeds the threshold.
Carbon credits and emission reduction results
For the first time, the Personal Income Tax Law of 2026 stipulates a tax on the transfer of greenhouse gas emission reduction results. This demonstrates the synchronization of tax policy with the Government's Net Zero commitment, transforming environmental protection efforts into quantifiable economic value.
Auctioning license plates and digital assets.
The Personal Income Tax Law of 2026 also clarifies tax obligations when individuals transfer license plates won at auction. At the same time, the concept of "digital assets" appears for the first time in tax law, creating a legal basis for managing cryptocurrencies and virtual assets in the near future.
Feasibility analysis and considerationsPersonal Income Tax Law 2026 for business accountants
When applying the Personal Income Tax Law of 2026, auditors and tax accountants need to pay attention to timeliness and supporting documentation. Determining taxable revenue (the amount exceeding 500 million VND) requires absolute accuracy in aggregating data from multiple sources.
For individuals renting out real estate, the Personal Income Tax Law of 2026 maintains a stable tax rate of 51% but applies to the portion of revenue exceeding 500 million VND. This creates a significant advantage for those who own multiple small properties but whose total revenue is not excessively high.
Complying with the Personal Income Tax Law 2026 is not only an obligation but also a way for individuals and businesses to build financial credibility. Auditing firms like MAN regularly recommend that clients review their documentation systems to adapt to the new tax rates from 15% to 20% if they choose the expense deduction method.
Conclude
The Personal Income Tax Law of 2026 presents both opportunities and challenges for taxpayers in the context of an economy rapidly shifting towards a digital environment. Understanding the regulations regarding the VND 500 million threshold and new income categories such as digital assets and carbon credits is a prerequisite for ensuring legal security for all business activities.
To perfectly adapt to the Personal Income Tax Law 2026, individuals and businesses need a professional partner to optimize tax structure and audit risk management. MAN – Master Accountant Network is proud to be a leading provider of in-depth tax accounting and auditing services, helping you resolve all issues related to Law No. 109/2025/QH15. Contact MAN today to receive advice from experienced experts, ensuring sustainable development for your business.
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 the Personal Income Tax Law 2026
You only have to pay tax on the amount exceeding 500 million VND, which is 100 million VND. Depending on the industry, you multiply this 100 million VND by the corresponding tax rate (for example, 0.5% for the sale of goods).
Yes, the regulations on progressive tax rates for salaries remain in place; however, Law No. 109/2025/QH15 mainly focuses on amending regulations on business and new types of income.
If your actual expenses exceed your revenue, the Revenue-Expense method is generally more advantageous. If expenses are low or there are no invoices, the direct tax rate on revenue method is simpler and more economical. If I have an annual revenue of 600 million VND, how will I pay taxes according to the Personal Income Tax Law 2026?
Does the Personal Income Tax Law of 2026 apply to income from salaries and wages?
How can you choose the most advantageous tax calculation method under the effective date of the Personal Income Tax Law 2026?
