Tax changes to note from 1 July 2026
From 1 July 2026 a series of rules on personal income tax, e-invoicing and tax administration take effect. A summary of what matters most, each with a concrete recommended action.
Published 08/07/2026
This article is an English summary prepared for convenience only. Vietnamese tax and accounting rules are issued in Vietnamese, and many technical terms have no exact English equivalent — a translation may therefore be imprecise or read differently from the original, and acting on it alone can lead to a genuine misunderstanding of the rule. Names and reference numbers of legal instruments are kept in Vietnamese so that you can check the source text. Where this translation and the Vietnamese version differ, the Vietnamese version governs. Please read the Vietnamese article, or contact TRÍ TÍN, before relying on anything here.
From 1 July 2026 a series of significant tax rules take effect, with direct consequences for day-to-day operations: Nghị định 252/2026/NĐ-CP (tax administration), Nghị định 253/2026/NĐ-CP (personal income tax), Nghị định 254/2026/NĐ-CP (e-invoices and electronic records) and Thông tư 87/2026/TT-BTC (detailed guidance on personal income tax).
At a glance — the figures to remember
| Item | Previously | From 1 July 2026 |
|---|---|---|
| 10% withholding threshold on casual income | VND 2 million per payment | VND 5 million per payment |
| Tax-free meal allowance | VND 730,000/month (to 6/2025), then uncapped | VND 1,200,000/month |
| Medical expense deduction | Did not exist | VND 23,000,000/year (new) |
| Education expense deduction | Did not exist | VND 24,000,000/year (new) |
| Threshold for exemption from separate finalisation | VND 10 million/month | VND 15 million/month |
| Maximum income of a dependant | VND 1 million/month | VND 3 million/month |
| Employer-paid life/pension insurance | — | Exempt up to VND 3 million/month |
Part I — Personal income tax
1. The 10% withholding threshold on casual income
Where a company pays fees, remuneration or commission to someone without an employment contract or on a contract shorter than three months (contributors, seasonal workers, including former staff receiving later payments), the company must withhold 10% tax where each payment is VND 5 million or more — previously VND 2 million.
Recommendation
Review payments to contributors and seasonal staff against the new threshold, so that too much or too little is not withheld.
2. Tax-free meal allowance
| Period | Exempt amount |
|---|---|
| Before 15/06/2025 | Up to VND 730,000/person/month |
| 15/06/2025 – 30/06/2026 | No specific cap; set by the business |
| From 01/07/2026 | A clear cap: up to VND 1,200,000/person/month |
Anything above that cap is treated as taxable income of the employee.
3. A significant new rule — medical and education deductions
This is entirely new. From 1 July 2026, in addition to the usual family circumstance deduction, an individual may deduct two further categories of actual expenditure for themselves or their dependants:
| Type of expense | Maximum |
|---|---|
| Medical examination and treatment (within the health insurance list) | VND 23,000,000/year |
| Education and training fees | VND 24,000,000/year |
Two conditions apply: valid invoices and supporting documents are required, and the individual must file their own tax finalisation directly rather than authorising their employer to do it for them.
When it applies
This deduction applies only at year-end finalisation, not during monthly or quarterly withholding — the paying organisation has no way of knowing an individual's actual medical or tuition costs in advance.
Recommendation
The rule is favourable but demands correct documentation from the start of the year. Employees who intend to claim should speak to TRÍ TÍN before the expense is incurred, so they do not end up holding invoices that cannot be used.
4. Exemption on night-shift and overtime pay
Exempting the difference between night-shift or overtime pay and ordinary pay is not new. What changes from 1 July 2026 is that the company must prepare and retain a schedule of night and overtime hours with the corresponding amounts.
Recommendation
A missing schedule is the common reason this exemption is rejected on inspection. Review timekeeping and record retention now.
5. Employer-paid life and pension insurance
Where a company buys voluntary life or pension insurance for staff as a benefit, the premium is not treated as the employee's taxable income — but only up to VND 3,000,000 per person per month. Anything above that is taxed when the policy matures.
When it applies
Unlike the medical and education deductions above, this applies immediately in monthly withholding, because it is a benefit the company knows about and pays on a regular basis.
6. Exemption threshold for separate finalisation of casual income
An individual with a main source of income and additional income elsewhere (already subject to 10% withholding) need not file a separate finalisation for that additional income if it averages no more than VND 15,000,000/month over the year — previously VND 10 million.
7. Registering dependants
- Registration deadline: before 31 December of the tax year (unchanged).
- What's new: the maximum income for someone to qualify as a dependant rises from VND 1 million to VND 3 million per month.
Recommendation
Review employees' dependants again, particularly those previously disqualified by the VND 1 million limit — they may now qualify.
Part II — E-invoices and electronic records
1. No invoice required on service deposits
| Previously | From 1 July 2026 |
|---|---|
| Exemption limited to certain services (accounting, audit, financial and tax advisory, valuation, engineering design, supervision consultancy, construction project preparation) | Applies to every service contract taking a deposit within the meaning of the Civil Code |
For example, a travel company taking a deposit for a tour need not issue an invoice on receipt — only on completion of the service or on formal collection.
2. Overnight invoicing without automated software
This covers businesses operating overnight (restaurants, hotels, convenience stores) that have no automated invoicing system. Previously an invoice had to be issued at the moment of the transaction even in the middle of the night; from 1 July 2026 it may be issued no later than the next working day.
Recommendation
This resolves a real practical problem for food, beverage and accommodation businesses. Brief cashiers and accounting staff so that late invoicing is not recorded for the wrong reason.
Part III — Tax administration
1. Exit suspension thresholds for tax debt
| Who | Tax debt threshold | Overdue period |
|---|---|---|
| Individual traders, household business owners | From VND 50,000,000 | From 120 days |
| Legal representatives of companies and cooperatives | From VND 500,000,000 | From 120 days |
Recommendation
Business owners carrying tax debt should settle early rather than discover an exit restriction when travelling for work or leisure.
2. Enforcement by suspending invoice use
A business with prolonged tax debt may lose the right to issue invoices. Where operations must continue (payroll, essential costs), it may apply to the tax authority to issue invoices transaction by transaction, on condition that at least 18% of the invoiced revenue is paid immediately to the state budget.
These are the points that matter most. For advice on your own situation, please contact TRÍ TÍN directly.
Legal basis
- Nghị định 252/2026/NĐ-CP (quản lý thuế)
- Nghị định 253/2026/NĐ-CP (thuế thu nhập cá nhân)
- Nghị định 254/2026/NĐ-CP (hóa đơn, chứng từ điện tử)
- Thông tư 87/2026/TT-BTC (hướng dẫn chi tiết thuế TNCN)
This summary reflects the legislation in force on the date of publication and is provided for general information. Rules may change or be interpreted differently in later guidance. It is not advice for any specific situation — please contact TRÍ TÍN before applying it to your own filings.
Need advice on your own situation?
Every business is different. Contact TRÍ TÍN to get advice for your specific case before you act.