Quick Summary: 2025 vs 2026 Deductions
What are the Vietnam PIT deductions for 2026? Under Vietnam National Assembly Standing Committee Resolution 110/2025/UBTVQH15 (implemented alongside PIT Law 109/2025/QH15), the personal deduction for the 2026 tax year increases by 41% to VND 15,500,000 per month (VND 186,000,000 per year) and the dependant deduction increases to VND 6,200,000 per month (VND 74,400,000 per year per registered dependant). For the 2020–2025 tax years, these amounts were VND 11,000,000 and VND 4,400,000 respectively.
💡 Planning your 2026 take-home pay? Calculate your net salary under both old and new deduction scales using our interactive Vietnam Salary & Tax Calculator.
Current Deduction Amounts (2025)
For the tax year 2025, the family circumstance deduction amounts remain:
| Deduction Type | Monthly Amount (VND) | Annual Amount (VND) |
|---|---|---|
| Personal Deduction | 11,000,000 | 132,000,000 |
| Dependant Deduction | 4,400,000 | 52,800,000 |
These amounts have been in effect since July 1, 2020, and continue through the 2025 tax year.
Resolution 110/2025 Overview
The National Assembly Standing Committee enacted Resolution 110/2025/UBTVQH15 adjusting family circumstance-based deductions for personal income tax taxpayers in Vietnam. The adjustments address cumulative Consumer Price Index (CPI) increases and inflation since the previous rate adjustment under Resolution 954/2020/UBTVQH14.
Key Statutory Milestones
* Effective Period: Applies to income earned in the 2026 tax year and subsequent periods. * Statutory Authority: Enacted under the framework of the new Law on Personal Income Tax (Law No. 109/2025/QH15). * Scope: Covers all resident individual taxpayers receiving wages, salaries, and employment income in Vietnam.
Does Resolution 110 Apply to Expats & Foreigners?
Yes, absolutely. Under Article 19 of the Law on Personal Income Tax and Circular 111/2013/TT-BTC, family circumstance deductions apply without distinction to all individuals who qualify as Vietnamese tax residents (present in Vietnam for 183 days or more, or holding a 183+ day residential lease).
Foreign employees qualify for:
- The VND 15,500,000/month personal deduction automatically against their monthly salary.
- The VND 6,200,000/month dependant deduction for each registered qualifying dependant (children, non-working spouse, or dependent elderly parents), whether living with them in Vietnam or overseas.
Note: Non-residents (present < 183 days without regular residence) pay a flat 20% on Vietnam-sourced income and are not entitled to personal or family deductions.
Current 2025 vs New 2026 Deductions Table
| Deduction Category | 2020–2025 Tax Years (Resolution 954/2020) | 2026 Tax Year Onward (Resolution 110/2025) | Net Monthly Increase | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Personal Taxpayer Allowance | VND 11,000,000 / mo (132M / yr) | VND 15,500,000 / mo (186M / yr) | +VND 4,500,000 / mo | +40.9% | | Per Dependant Allowance | VND 4,400,000 / mo (52.8M / yr) | VND 6,200,000 / mo (74.4M / yr) | +VND 1,800,000 / mo | +40.9% | | Taxpayer with 1 Dependant | VND 15,400,000 / mo (184.8M / yr) | VND 21,700,000 / mo (260.4M / yr) | +VND 6,300,000 / mo | +40.9% | | Taxpayer with 2 Dependants | VND 19,800,000 / mo (237.6M / yr) | VND 27,900,000 / mo (334.8M / yr) | +VND 8,100,000 / mo | +40.9% |
Dependant Income Ceiling Raised to 3M VND
Under previous regulations dating back to Circular 111/2013, an adult dependant of working age or elderly parent could only qualify if their average monthly income from all sources did not exceed VND 1,000,000.
Under the modernized regulations: * The monthly income threshold for dependants has been raised to VND 3,000,000 per month. * This makes it substantially easier for expatriates supporting a non-working spouse or retired parents to legally register them for tax deduction benefits in Vietnam.
New Itemized Deductions (Healthcare & Education)
Alongside Resolution 110/2025, the new PIT Law 109/2025/QH15 establishes brand-new itemized statutory deductions:
- Healthcare & Medical Expenses: Deductible up to VND 23,000,000 per year for out-of-pocket medical treatments and critical health expenses with valid VAT e-invoices.
- Child Education Expenses: Deductible up to VND 24,000,000 per child per year for tuition fees paid to accredited educational institutions.
Real-World Expat Tax Savings Calculations
Case Study: Expat Professional with 1 Dependant (Child)
* Gross Monthly Salary: VND 60,000,000 (after 10.5% Social & Health Insurance) * Status: Tax Resident, 1 registered child dependant
#### Under 2025 Rules: * Total Deductions: 11M (personal) + 4.4M (dependant) = VND 15,400,000 * Taxable Income: 60M − 15.4M = VND 44,600,000 * Monthly PIT (7-bracket scale): VND 7,900,000 * Net Annual Tax Paid: VND 94,800,000
#### Under 2026 Rules: * Total Deductions: 15.5M (personal) + 6.2M (dependant) = VND 21,700,000 * Taxable Income: 60M − 21.7M = VND 38,300,000 * Monthly PIT (5-bracket scale): VND 4,660,000 * Net Annual Tax Paid: VND 55,920,000
Net Savings for the Expat: VND 3,240,000 per month (over VND 38,880,000 / ~$1,550 USD saved annually).
Who Qualifies as a Dependant
Foreign tax residents can register the following family members:
- Children Under 18 Years: Minor biological or legally adopted children.
- Children Aged 18 and Older: Enrolled in university, college, or vocational training without income or with average income ≤ VND 3,000,000/month.
- Spouse: Inside or outside working age who is unable to work or earns ≤ VND 3,000,000/month.
- Parents (Biological or Parents-in-Law): Elderly parents outside working age or unable to work with income ≤ VND 3,000,000/month.
Documentation Requirements for Foreign Dependants
To claim foreign family members living in Vietnam or abroad, you must submit: * Certified copy of birth certificate or marriage certificate. * Consular legalization and Vietnamese notarized translation (bản dịch công chứng). * Proof of dependency (bank transfer slips for overseas dependants or residence registration).
How Foreigners Claim Deductions
- Register Dependant Tax Codes (Mã số thuế người phụ thuộc): Submit Form 02/ĐK-NPT-TNCN through your employer's HR department or via eTax Mobile.
- Annual Tax Finalization: If dependants were registered mid-year, you can claim the full retroactive deduction for eligible months by filing Form 02/QTT-TNCN during year-end finalization to secure a substantial tax refund.
💼 Need help registering dependants or claiming deductions? Contact our certified Vietnam tax specialists or book our PIT Finalization Service today.
Sources: Resolution 110/2025/UBTVQH15, Law on Personal Income Tax 109/2025/QH15, Circular 111/2013/TT-BTC, Decree 65/2013/ND-CP. For official decrees visit vbpl.vn.