Question:
Pursuant to the amended Law on Personal Income Tax, which takes effect from 01 July 2026, I have a question regarding the progressive personal income tax tariff and its applicable period: will it be applied from 01 January 2026 or from 01 July 2026?
Answer:
According to Clause 2, Article 29 of the Law on Personal Income Tax 2025, it is stipulated that:“Provisions related to income from business activities and income from salaries and wages of resident individuals shall be applied from the tax period of the year 2026.”
Pursuant to Clause 6 and Clause 11, Article 3 of the Law on Tax Administration 2019, the following definitions are provided:
Article 3. Interpretation of terms
[…]
6. Tax period means the period used to determine the amount of tax payable to the state budget in accordance with tax laws.
11.Tax year is determined according to the calendar year, from 01 January to 31 December; in cases where the fiscal year differs from the calendar year, the tax year shall be determined based on the fiscal year.
Based on the above provisions, the regulations on income from business activities and income from salaries and wages of resident individuals under the Law on Personal Income Tax 2025 shall be applied from the tax period of the year 2026, i.e. from 01 January 2026.
Therefore, although the Law generally takes effect from July 2026, provisions related to income from business activities, salaries, and wages of resident individuals—such as the progressive tax tariff and dependent deductions for employees—shall be applied from 01 January 2026.
Reference consultation: Tax consulting legal services
