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I don’t have official figures but That’s probably the case years ago. Effective January 2026 Vietnam personal income tax is progressive starting from 5 to 35% after deduction (15.5 million a month).It seems that I have a better understanding of the current situation in Vietnam than you do. The most common income in first tier cities in Vietnam is 10 million Vietnamese dong per month.
I don’t have official figures but That’s probably the case years ago. Effective January 2026 Vietnam personal income tax is progressive starting from 5 to 35% after deduction (15.5 million a month).
So if most or majority earn 10 million a month then the gov earns nothing in income tax. Ways lower than 15.5 million.
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Major Personal Income Tax Changes Effective 2026
We are pleased to share important updates to Vietnam’s Personal Income Tax (PIT) policy following Resolution 110/2025/UBTVQH15 and the draft amendments to the PIT Law.www.gvw.com
The new threshold is 15.5 million a month a person. Each dependent increases the limit by 6.2 million a month a person. You are right. The main gov revenue seems to be elsewhere.I have been to Hanoi in the first half of this year and I am very familiar with the current situation in Vietnam.
By the way, the personal income tax threshold in Vietnam is indeed 13 million Vietnamese dong. However, only 3 to 4 million people in Vietnam pay income tax. Of course, the official data from Vietnam shows that 5 million Vietnamese people have paid income tax.
The Chinese government's fiscal revenue mainly comes from corporate income tax, land transfer fees, and the payment of profits to state-owned enterprises. The proportion of personal income tax is very small. I guess the Vietnamese government is the same.The new threshold is 15.5 million a month a person. Each dependent increases the limit by 6.2 million a month a person. You are right. The main gov revenue seems to be elsewhere.
I visited Saigon last winter seeing many earning little, many earn a lot. There is a big gap between. Overall Vietnam is a manufacturing country thus many things are in surplus thus affordable for the mass. Have you ever travelled to the southern part?The Chinese government's fiscal revenue mainly comes from corporate income tax, land transfer fees, and the payment of profits to state-owned enterprises. The proportion of personal income tax is very small. I guess the Vietnamese government is the same.
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