Starting from July 1, 2026, Vietnam will implement a new set of regulations regarding personal income tax (PIT) as outlined in the Personal Income Tax Law of 2025. This law expands the categories of taxable income, which will now include a total of 15 types of income that are subject to PIT.

Previously, under the 2007 Personal Income Tax Law, individuals were only required to pay taxes on specific income types, including business income, wages, investment income, and several others. The new law adds five additional categories, such as income from the transfer of domain names and carbon credits, which will also be taxable.

According to the new regulations, individuals will need to assess whether their income falls under these taxable categories. If it does not, they can provide clear and transparent explanations to the tax authorities to avoid PIT on non-taxable income, such as family expenses or money lent between friends.

Moreover, the law specifies several types of income that are exempt from PIT. These include income from gifts or inheritances between family members, certain agricultural income, and income from government bonds, among others. The exemptions aim to alleviate the tax burden on individuals and encourage economic activities.

As the implementation date approaches, individuals should familiarize themselves with these changes to ensure compliance and optimize their tax obligations. The new law is part of Vietnam's broader efforts to modernize its tax system and improve revenue collection.