On 30 June 2026, the Government issued Decree No. 253/2026/ND-CP detailing the Law on Personal Income Tax No. 109/2025/QH15 (as amended and supplemented by Law No. 09/2026/QH16). The Decree replaces Decree 65/2013/ND-CP and abolishes Article 3 of Decree 91/2014/ND-CP and Article 2 of Decree 12/2015/ND-CP.
The Decree takes effect on 1 July 2026. For income from salaries, wages and business of resident individuals, the provisions apply from the 2026 tax period and will be reconciled in the 2026 tax finalisation; the mid-shift meal allowance applies from 1 July 2026. Below are the most notable new points for enterprises and employees.
1. New deductions for medical and education expenses
This is the most significant change. In addition to family-circumstance deductions and charitable contributions, resident taxpayers may deduct from taxable salary/wage income the following expenses paid for themselves and their dependants:
- Medical examination and treatment at domestic facilities, within the scope covered by health insurance: up to VND 23 million/year in total (with a medical cost statement as prescribed by the Ministry of Health).
- Education and training at domestic institutions (tuition for preschool, general education, vocational education, university and other professional skills): up to VND 24 million/year in total.
Conditions: valid invoices/documents bearing the taxpayer’s or dependant’s information; the expense must not be paid from other sources (insurance, State budget, sponsorship, or paid on behalf by the employer). Expenses are deducted in the year incurred and cannot be carried forward.
Important: to claim these two deductions, the taxpayer must self-finalise their tax and cannot authorise the paying organisation to do so.
2. Higher tax-exemption and deduction thresholds
| Item | Old | New | Basis |
|---|---|---|---|
| Tax-exempt mid-shift / lunch meal allowance | VND 730,000/month | VND 1.2 million/month | Pt g, Cl 2, Art 8 |
| Deduction for supplementary/voluntary pension + life insurance (incl. employer’s portion) | VND 1 million/month | VND 3 million/month | Pt a, Cl 2, Art 46 |
| 10% withholding threshold on casual income (no labour contract / under 3 months) | VND 2 million/time | VND 5 million/time | Cl 2, Art 50 |
| Casual income already withheld 10% — no finalisation required if average | ≤ VND 10 million/month | ≤ VND 15 million/month | Pt b, Cl 1, Art 51 |
| Taxable threshold for winnings, royalties, franchising, inheritance, gifts | Portion over VND 10 million | Portion over VND 20 million | Arts 58–61 |
| Deduction for domestic medical expenses | None | Up to VND 23 million/year | Cl 2, Art 49 |
| Deduction for domestic education/training tuition | None | Up to VND 24 million/year | Cl 2, Art 49 |
3. Favourable changes to salary and wage income
- Severance / job-loss allowances above the statutory level: the excess is not included in taxable income — a reversal of the current rule.
- Payment for untaken annual leave upon termination (Cl 3, Art 113 of the Labour Code): exempt within the statutory level; only the excess is taxed (Art 26). Entirely new.
- Voluntary social insurance and voluntary health insurance paid by the employee are deductible when determining taxable income (Pt a, Cl 2, Art 46).
- Employer-built housing for employees is not taxable, including electricity, water and related services. Rent paid on behalf remains capped at 15% of total taxable income (excluding housing).
- “Hypothetical tax” and “hypothetical housing” are excluded from the income used for gross-up (Cl 4, Art 46) — relevant for seconded foreign employees.
- Bonus shares and ESOP (Cl 3, Art 50): detailed tax basis; 10% withholding on transfer, with individuals consolidating in annual finalisation.
- Employer-purchased life insurance: from 1 January 2026, only 10% is withheld on the accumulated premium exceeding the VND 3 million/month deduction.
4. New tax on transfer of digital assets
For the first time, income from the transfer of digital assets (virtual/crypto assets) is taxed at 0.1% of the transfer price per transaction (Cl 4, Art 16; Cl 2, Art 62).
5. Tighter conditions for registering dependants
For the “other individuals with no support” group, conditions are tightened: they must live with the taxpayer and the taxpayer must have a nurturing obligation under the Law on Marriage and Family (Pt dd, Cl 2, Art 47). Dependant registration dossiers must be submitted before 31 December of the tax year.
Thunder Dragon’s recommendation
To claim the medical (up to VND 23 million/year) and education (up to VND 24 million/year) deductions, employees must self-finalise their tax and retain full invoices and documents from the start of 2026. Enterprises should review their benefit policies (meal allowance, housing, insurance, ESOP, etc.) to update tax treatment. Thunder Dragon is ready to assist — contact info@thunderdragon.vn or +84 979 104 110.
This bulletin is a general policy update and does not replace professional advice for specific cases. Source: Decree 253/2026/ND-CP dated 30 June 2026.