Vietnam Personal Income Tax Guide for Freelancers 2026: Major New Law Changes
Vietnam's PIT law sees its biggest reforms since 2012 in 2026. New VND 500M exemption threshold, higher personal deductions, and tech worker incentives. Everything freelancers and SMEs need to know.
Disclaimer: This article is for general informational purposes only. Tax laws in Vietnam are changing significantly in 2026. Please consult a licensed tax professional or the General Department of Taxation of Vietnam (GDT) for authoritative guidance.
Vietnam's Biggest Tax Reform in Over a Decade
2026 is a landmark year for freelancers in Vietnam. The amended Personal Income Tax (PIT) Law — the most significant overhaul since 2012 — takes full effect in 2026, bringing higher tax-free thresholds, increased personal deductions, and major new exemptions for tech workers.
Key 2026 PIT Changes
1. Business Income Exemption: VND 100M → VND 500M
The annual revenue threshold below which business income is exempt from PIT has been raised from VND 100 million to VND 500 million (~USD 20,000). If your total freelance/business revenue for 2026 is below VND 500M, you owe no PIT on that income.
2. Higher Personal Deduction
The basic personal deduction increases from VND 11M to VND 15.5M per month (VND 186M/year). Dependent deduction rises from VND 4.4M to VND 6.2M per month. Effective January 1, 2026.
3. Tech Sector Exemptions
AI, semiconductor, and R&D experts receive a 5-year PIT exemption. Tech startup investment income receives a 50% PIT reduction.
4. Full Law Effective July 1, 2026
PIT Rates for Freelance Business Income
Flat rates applied to gross revenue (not profit): consulting, IT, creative work = 2%; production/construction/transport = 1.5%; distribution/goods = 0.5%.
Progressive Rates for Employment Income
- Up to VND 60M/year: 5%
- VND 60M–120M: 10%
- VND 120M–216M: 15%
- VND 216M–384M: 20%
- VND 384M–624M: 25%
- VND 624M–960M: 30%
- Over VND 960M: 35%
Filing Deadline: April 30, 2026
For 2025 income, file by April 30, 2026 via thuedientu.gdt.gov.vn or the eTax Mobile app.
Tools like Denpyo make it easy to photograph invoices and receipts — AI automatically extracts amounts, dates, and categories — especially useful for freelancers invoicing international clients in USD or JPY. Use Denpyo's Tax Savings Estimator to understand your overall tax picture.
Official Resources
Summary
- VND 500M exemption: no PIT on business income below this threshold
- Business income flat rates: 0.5%–2% of gross revenue by industry
- Personal deduction rises to VND 15.5M/month; dependent to VND 6.2M/month
- Filing deadline: April 30 (for 2025 income)
- Tech sector: 5-year PIT exemption for AI, semiconductor, R&D experts
- Full law effective: July 1, 2026
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