Tax and Finance Newsletter – June 2026

ACAC – Tax and Finance Newsletter, June 2026

Personal Deduction Level Raised to VND 15.5 Million/Month, as the 2025 Tax Administration Law Officially Takes Effect from 1 July 2026

At Anh Consulting and Auditing Co., Ltd. (ACAC), we place strong emphasis on keeping pace with regulatory developments and providing accurate professional knowledge to help businesses make effective financial decisions, remain compliant, and adapt flexibly in a changing policy environment.

The most notable development in June 2026 is the significant official increase in the personal income tax (PIT) deduction level, directly affecting the taxable income of the majority of the country’s workforce. At the same time, the 2025 Tax Administration Law officially takes effect from 1 July 2026, bringing a number of new provisions on penalty principles and prohibited acts. ACAC’s June 2026 newsletter summarizes the most notable updates to help enterprises and employees stay informed and adjust accordingly in a timely manner.

Tax Policy Guidance and Updates

Tax Payment Deferral and New Provisions of the 2025 Tax Administration Law

On 27 June 2026, the Government issued Decree No. 245/2026/ND-CP deferring the deadlines for payment of VAT, CIT, PIT, and land rental in 2026, effective from its date of signing through to 30 December 2026; taxpayers who have already paid amounts eligible for deferral before the Decree’s effective date will not have those payments adjusted. Notably, the 2025 Tax Administration Law officially takes effect from 1 July 2026 with a number of important provisions: the statute of limitations for penalizing violations of tax procedures is 02 years, while for tax evasion not yet at a level warranting criminal prosecution, or for incorrect declarations resulting in a tax shortfall, the statute of limitations is 05 years. Once the statute of limitations for penalties has expired, the taxpayer, although not subject to a penalty, must still pay in full the tax shortfall, the evaded tax, any incorrectly exempted, reduced, or refunded amount, and late payment interest for the preceding 10 years counted from the date the violation is discovered (a person who has not registered for tax, however, must pay for the entire period of the violation, without the 10-year limit). The Law also sets out a clear list of acts prohibited in tax administration, including: collusion between a taxpayer and a tax official to evade tax or commit fraud; deliberately failing to declare, or incorrectly declaring, the tax payable; using another person’s tax code; selling goods without issuing an invoice, or using forged or unlawful invoices or documents; and acts that infringe upon the tax administration information system.

Personal Income Tax (PIT) — Increase in the Personal Deduction Level

From 2026, the personal deduction level used in calculating PIT has been significantly increased: the deduction for the taxpayer themself is VND 15.5 million/month (VND 186 million/year), and the deduction for each dependant is VND 6.2 million/month — a substantial increase compared to the previous level, reducing the PIT payable for the majority of employees earning income from wages and remuneration. Enterprises should promptly update their payroll and tax withholding systems to apply the new deduction level correctly. In addition, the Ministry of Finance is seeking comments on a draft Circular guiding the 2025 PIT Law, which proposes raising the income threshold for registering a dependant from the current level of VND 1 million/month to VND 3 million/month — if adopted, many dependants with modest income (for example, a child in school earning part-time income) would remain eligible, allowing the taxpayer to continue claiming the personal deduction for them. This remains only a proposal at the draft stage; enterprises and employees should continue to monitor developments so as to update once the official document is issued.

Other Taxes

On 8 June 2026, the Government issued Decree No. 201/2026/ND-CP amending the export tax rates of certain goods under the Export Tariff Schedule, effective from 23 July 2026: bismuth and bismuth products (HS code 81.06) are now subject to a 0% export tax rate, while fluorite ore with a calcium fluoride content exceeding 97% (HS code 2529.22.00) is reduced from 10% to 5%. In addition, on 15 May 2026 the Ministry of Finance issued Circular No. 55/2026/TT-BTC prescribing 29 forms and reports relating to investment activities and investment promotion in Vietnam — domestic and foreign investors may refer to these to standardize their dossiers when proposing, adjusting, or reporting on the implementation of investment projects.

Other Matters — Labor Policy

At the 14th National Congress of the Vietnam General Confederation of Labour (4 June 2026), the Confederation proposed studying a roadmap to reduce normal working hours to 40–44 hours/week (the current maximum under the 2019 Labor Code being 48 hours/week) and to add 2 additional days of leave around National Day. It should be noted that this is only a proposal at this stage and has not yet been adopted by the competent authority as an official regulation — enterprises do not yet need to adjust their working hours in line with this proposal, but should monitor the progress of the policy-making process.

Transparency – Updates – Partnership

Through its monthly newsletter, ACAC aims not only to deliver authoritative information but also to help enterprises understand the practical impact of policy changes, enabling them to proactively adjust their financial strategies and risk management.

We believe that transparency, professional rigor, and timely updates form the foundation for the sustainable growth of Vietnam’s business community in this era of global integration.

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