Story perspectives

Vietnam Increases Tax Deductions Amid Rising Incomes

10/21/2025

Summary

Story summary

Vietnam's National Assembly approved increasing personal income tax deductions, raising monthly deductions to VND15.5 million for the 2026 tax period.
Dependent deductions rise from VND4.4 million to VND6.2 million.
The adjustment reflects a 40–42% rise in per capita income and GDP since 2020.
The Finance Ministry estimates annual state revenue will fall by about VND21 trillion.
Most lawmakers support the change, while some urge future-income considerations in revisions.

History

Historical Context

Since the Doi Moi reforms began in 1986, Vietnam has transitioned from a command economy to a socialist-oriented market economy, achieving significant GDP growth. The introduction of the Personal Income Tax Law in 2009 established a progressive tax system, generating an annual revenue increase of approximately VND30 trillion. Recent tax adjustments reflect ongoing economic growth, with per capita income rising by 40-42% since 2020.

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Story summary

Vietnam's National Assembly approved increasing personal income tax deductions, raising monthly deductions to VND15.5 million for the 2026 tax period.
Dependent deductions rise from VND4.4 million to VND6.2 million.
The adjustment reflects a 40–42% rise in per capita income and GDP since 2020.
The Finance Ministry estimates annual state revenue will fall by about VND21 trillion.
Most lawmakers support the change, while some urge future-income considerations in revisions.

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