At the 50th meeting on the morning of October 17, 2025, the National Assembly Standing Committee agreed to adjust the family deduction level (GTGC) of personal income tax (PIT) for the taxpayer himself and for each dependent, applicable from the 2026 tax period. This is an adjustment according to the statutory mechanism to preserve purchasing power and appropriately reflect price/income fluctuations in the period 2020-2025.
I. Adjusting the family deduction level (GTGC)
1. Current VAT rate (until the end of tax period 2025):
According to the Resolution 954/2020/UBTVQH14 June 2, 2020:
- The deduction for taxpayers is 11 million VND/month (132 million VND/year);
- The deduction for each dependent is 4.4 million VND/month.
2. New VAT rate (from tax period 2026):
According to the Resolution at the 50th Session of the National Assembly Standing Committee:
- Deduction for taxpayers leaves 15.5 million VND/month (186 million VND/year);
- Deduction for each dependent leaves 6.2 million VND/month.
💡 Increase interval 40.9% compared to current levels from 2020.
II. Background and impact of the adjustment
1. Background
According to the Law on Personal Income Tax 2012 amended No. 26/2012/QH13 June 2, 2012:
" In case the consumer price index (CPI) fluctuates more than 20% compared to the time the Law comes into force or the time of the most recent adjustment of the family deduction level The Government shall submit to the National Assembly Standing Committee an adjustment of the family deduction level prescribed in this clause in accordance with price fluctuations to apply to the next tax period. "
According to the General Statistics Office, the CPI index by the end of 2025 is expected to fluctuates about 21.24% compared to the level at the time of the most recent adjustment in 2020 (according to Resolution 954/2020/UBTVQH14). The adjustment of the new VAT rate is implemented to implement the provisions of the amended Personal Income Tax Law 2012, thereby ensuring that employees' after-tax income accurately reflects price fluctuations from 2020.
2. Impact
According to the General Statistics Office - Ministry of Finance, the preliminary results of the 2024 Population Living Standards Survey show that the average income per capita at current prices in 2024 will reach about 5.4 million VND/person/month. This new deduction of 15.5 million VND is approximately 3 times more average per capita income, thereby increasing the tax threshold in line with price and income fluctuations.
💡 Example
- Employee A has an income of 14 million VND/month and has 01 dependent.
- Employee B has an income of 20 million VND/month and has no dependents.
| Items |
Worker A (01 dependent) |
Employee B (No dependents) |
| Income | 14,000,000 VND / month | 20,000,000 VND / month |
|
Insurance payment 10.5% (Social insurance 8% + Health insurance 1.5% + Unemployment insurance 1%) |
1,470,000 copper | 2,100,000 copper |
|
Reduce your family situation |
15,500,000 copper | 15,500,000 copper |
|
Dependent deduction |
6,200,000 copper | 0 |
| Taxable income level | 23,170,000 VND | 17,600,000 copper |
| Subject to personal income tax | No | Have |
👉 Employee B is subject to personal income tax with a tax rate starting from 5% for income exceeding VND 17,600,000.
Implementing this new GTGC level adjustment, it is expected that The state budget will decrease by about 21,000 billion VND/year. compared to the revenue level and the number of taxpayers according to the current deduction level from 2020. Despite the decrease in the state budget, the adjustment of the VAT rate helps reflect market fluctuations, creating motivation for taxpayers to accumulate, consume and stimulate the economy.
III. What should businesses do?
1. From now until the end of 2025
⮞ Continue to deduct at the current rate of VND 11 million for the taxpayer himself and VND 4.4 million for each dependent (according to Resolution 954/2020/UBTVQH14).
⮞ Review dependent registration records according to regulations at Circular 111 / 2013 / TT-BTC and related procedural instructions on Public Service Portal.
2. From tax period 2026 onwards
⮞ Update The new VAT rate is 15.5 million VND for the taxpayer himself and 6.2 million VND for each person depending on the Salary Regulations and salary system.
⮞ Synchronize Forms, procedures and related reports should be updated to reflect the new deduction.
⮞ Check and inspect dependent registration file. Ensure that the documents are complete and valid according to regulations.
⮞ media Internally, guide employees on the new deduction levels, application time and related knowledge. Ensure employees understand correctly and fully their legal rights.
Raising the family deduction level helps the tax threshold to be more consistent with current price and income levels. Although it applies from the 2026 tax period, businesses and employees should promptly update the salary system, review dependent records and organize internal communications to ensure smooth compliance. In line with the spirit “Understand correctly – Do correctly”Each implementation step must adhere to regulations, have sufficient documents and be periodically checked to optimize costs and reduce risks during settlement.