Labor Regulations Update in July 2026

Decree No. 253/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Personal Income Tax

On June 30, 2026, the Government issued Decree 253/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Personal Income Tax (Decree 253). At the same time, the Ministry of Finance issued Circular 87/2026/TT-BTC detailing a number of articles of the Law on Personal Income Tax and Decree No. 253/2026/ND-CP of the Government detailing a number of articles and measures to organize and guide the implementation of the Law on Personal Income Tax (Circular 87).

Talentnet would like to summarize the important changes related to the Personal Income Tax from salaries, and wages as follows:

1. Tax declaration period: The regulations on the tax declaration period are changed for the case of a foreigner coming to Vietnam for the first time, if he satisfies the condition of being a tax resident (for example, in Vietnam for full 183 days or more in the first calendar year,…), the tax year is the calendar year and the foreigner must declare tax on the income received from January 1 to December 31, regardless of whether the individual is a citizen of a country that has signed an agreement for the avoidance of double taxation and the prevention of tax evasion with Vietnam.

2. Reduction of medical expenses: It is allowed to deduct expenses for medical examination and treatment at domestic medical facilities within the list covered by health insurance with a total of not more than 23 million VND/year. Individuals shall be responsible for the dossiers and documents and make tax finalization with tax authorities on this deduction by themselves.

3. Reduction of education expenses: It is allowed to deduct expenses for education and training at domestic education and training institutions with a total of not more than 24 million VND/year. Individuals shall be responsible for the dossiers and documents and make tax finalization with tax authorities on this deduction by themselves.

4. The amount of mid-shift meals and lunches is exempt from tax up to 1.2 million VND/person/month.

5. Tax-free income:

• Salaries and wages paid for night work or overtime at the workplace; salaries and wages are paid for the untaken annual leave in accordance with the provisions of the Labor Law.
• For severance allowances or job-loss allowances as prescribed by law, with specific provisions in financial regulations or internal regulations or labor contracts or collective labor agreements on the level of severance allowance or job-loss allowance higher than the level prescribed by law, the actual payment in excess of this amount shall NOT be included in taxable income of employees.

6. Increase the average monthly income used as the basis for determining dependents for whom taxpayers are entitled to family deductions, up to a maximum of 3 million VND. At the same time, the regulations stipulate that the deadline for registering dependents along with supporting documents for dependents is before December 31st of the tax year and will remain stable for subsequent years unless there are changes.

7. For resident individuals who do not sign contracts or sign labor contracts for less than 03 months (including the case of paying salaries and other incomes to employees whose labor contracts have been terminated), the threshold of income that must be deducted 10% tax at the source is increased from 2 million VND/time to 5 million VND/time or more. In case the income payment is less than VND 05 million/time, the income-paying organization or individual shall be entitled to tax deduction at the rate of 10% upon the individual’s request.

8. Individuals with incomes in other places with an average income of not more than 15 million VND/month (10% deducted at source) are not required to make tax finalization for this income.

Regulations related to income from salaries and wages of resident individuals are applied to the entire tax period of 2026. Particularly, the regulation on increasing the mid-shift meal allowance (1.2 million VND) will be applied from 01/07/2026 onwards.

Notably, taxpayers have declared and paid tax on income from salaries and wages for the tax period of 2026 during the period from January 1, 2026 to before the effective date of this Decree in accordance with the provisions of legal documents on personal income tax applied before the effective date of this Decree are not required to resubmit monthly and quarterly tax declaration dossiers but make adjustments to tax finalization declaration dossiers in 2026.

Circular No. 87/2026/TT-BTC of the Ministry of Finance detailing a number of articles of the Law on Personal Income Tax and Decree No. 253/2026/ND-CP of the Government detailing a number of articles and measures to organize and guide the implementation of the Law on Personal Income Tax

On June 30, 2026, the Minister of Finance issued Circular 87/2026/TT-BTC dated June 30, 2026 detailing a number of articles of the Law on Personal Income Tax and Decree 253/2026/ND-CP. In particular, there are instructions for dossiers to identify dependents as children of taxpayers.

Accordingly, the guidance on dossiers for determining dependents as children of taxpayers is detailed as follows:

In the case of a Dependent (NPT) who is a parent, the NPT application includes the following documents:

In case an individual wishes to register his/her spouse as a dependent, the dossier shall include:

• A copy of the ID card.
• A copy of the marriage certificate or other papers proving the husband-and-wife relationship issued by a competent authority.

In case an individual wishes to register a dependent, who is another helpless individual that the taxpayer must directly nurture, including:

• A copy of the ID card.
• Declaration of people who must be directly nurtured form 07/XN-NPT-TNCN issued together with Circular 90/2026/TT-BTC.
• Papers proving the relationship between taxpayers and dependents and papers proving that taxpayers are obliged to nurture dependents in accordance with law (if any).

Decree No. 252/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration

On June 30, 2026, the Government issued Decree 252/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration (Decree 252). Talentnet would like to update some notable and detailed regulations as follows:

1. Regulations regarding the deadline for initial tax registration: Income-paying organizations and individuals shall make first-time tax registration on behalf of income-earning individuals no later than the last day of the deadline for submission of personal income tax declaration dossiers of the first period in which income payment is made to individuals in case the individuals have not yet registered for tax; register for tax for the first time on behalf of the individual’s dependents no later than December 31 of the tax year.

2. Regulations regarding the deadline for changing tax registration information:

In case an individual authorizes an income-paying organization or individual to register changes in tax registration information for individuals and dependents, it must notify the income-paying organization or individual within 10 working days from the date on which the change occurs; Income-paying organizations and individuals shall notify tax authority within 10 working days from the date of receipt of the individual’s authorization;

There is no need to carry out procedures for changing information with the tax authority in case the national database on population has connected and shared data with the tax authority’s database and automatically synchronized when the individual’s information changes. The tax administration information system sends automatic notices to taxpayers about the updated changed information;

3. Tax settlement deadline for foreigners who terminate labor contracts in Vietnam must be implemented before leaving the country for resident individuals but must not exceed 45 days from the date of termination of labor contracts.

4. Supplementary tax return filing:

Taxpayers are not allowed to submit supplementary tax returns or other declarations for records within the scope and period of investigation as requested by the investigating authorities to the tax authority.

If a taxpayer discovers errors or omissions in a submitted tax return or other income declaration that increase the amount of tax or other income payable, or decrease the amount of tax or other income exempted, reduced, refunded, or reduced the amount of deductible value-added tax carried forward to the next period, but the tax return or other income declaration has expired after 5 years from the deadline for submission, the taxpayer is not allowed to submit supplementary tax returns or other income declarations but may provide an explanation to the tax authority.

5. Adding cases where tax refunds are not granted: Individuals whose annual overpaid tax amount after personal income tax finalization from salaries and wages on the tax finalization declaration dossier is VND 50,000 or less shall offset the overpaid tax amount against the payable tax amount of the next tax period;

6. Responsibilities for tax withhold declaration, tax declaration and payment on behalf of: Organizations and individuals that withhold, declare or pay tax on their behalf shall provide detailed information on tax amounts already deducted or paid on behalf of tax according to the form prescribed by the Minister of Finance enclosed with tax payment vouchers to tax administration authorities. The deadline for providing information together with the tax payment deadline shall comply with the law on tax administration.

7. Regarding coercive measures by deducting part of salaries or incomes, which stipulate in more detail the conditions of application, measures to verify information on salaries and incomes, deduction rates, responsibilities of employers.

Circular No. 89/2026/TT-BTC detailing a number of articles of the Law on Tax Administration and the Government’s Decree No. 252/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration

On June 30, 2026, the Minister of Finance issued Circular No. 89/2026/TT-BTC detailing a number of articles of the Law on Tax Administration and Decree No. 252/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration.

Accordingly, the PIT declaration for income from salaries and wages has some notable points as follows:

• Quarterly tax declaration: Income-paying enterprises/organizations declare the deducted PIT amount on a quarterly basis.
• Annual tax finalization: Enterprises are responsible for tax finalization and finalization on behalf of authorized employees, regardless of whether tax deduction is incurred or not.
• Employees transferred in the same system (due to merger, consolidation, division, separation, transformation, etc.): The new unit shall conduct tax finalization on behalf of the authorized employee and revoke the tax withholding certificate issued by the former unit (if any).
• Place to submit tax declaration dossiers:
  • In case of centralized declaration: Submit at the tax authority managing the head office.
  • If declared separately for each dependent unit/business location: Submit to the tax authority managing each dependent unit or business location.

Update forms related to personal income tax declaration from salaries and wages as follows:

Circular No. 90/2026/TT-BTC regulating tax registration

On June 30, 2026, the Minister of Finance issued Circular No. 90/2026/TT-BTC detailing the provisions of the Law on Tax Administration 2025 and Decree No. 252/2026/ND-CP on the scope of tax registration, tax identification numbers, registration procedures, change of information, suspension, termination and restoration of tax identification numbers for taxpayers.

Accordingly, the Circular expands the scope of application to many tax obligors, including foreign suppliers, foreign contractors, organizations and individuals that withhold and pay tax on behalf of taxpayers, petroleum contract operators and global minimum tax declaration organizations.

In particular, foreign suppliers are not required to register for tax if all revenue generated in Vietnam has been deducted and paid on behalf of taxpayers.

The Circular also stipulates the structure of Tax Identification Number (TIN, Vietnamese: MST) issued by tax authorities:

• The 10-digit MST is issued to independent organizations and a number of subjects as prescribed.
• The 13-digit MST is issued to dependent units and some special cases.
• Each organization and each individual is only granted a single MST; the issued MST cannot be re-issued to other taxpayers.

In addition, the Circular promotes electronic tax registration. Accordingly, taxpayers can submit dossiers through the National Public Service Portal, the National Identification Application or the Tax Administration Information System.

The system sends a notice of receipt of the dossier within 15 minutes and, if the dossier is incomplete, the tax authority must make an additional notification within 02 working days.

At the same time, the Circular provides detailed guidance on first-time tax registration, change of information, suspension of operation, early resumption of operation, termination of validity and restoration of tax identification numbers for organizations and individuals. The Circular also promulgates a system of declaration forms, lists and uniform forms for carrying out tax registration procedures nationwide.

1. Updating several forms related to individuals and dependents who directly register for tax or authorize income-paying organizations for income from salaries and wages

2. A tax registration dossier of an individual or dependent through an organization that pays income from salaries and wages includes: A written authorization for tax registration using form No. 41/UQ-ĐKT, a declaration of persons who must be directly nurtured using form No. 07/XN-NPT-TNCN (for dependents of “other” subjects which the taxpayer must directly nurture them) and other papers identifying dependents in accordance with the law on personal income tax.

In case the individual is a foreign national or a person with Vietnamese nationality living abroad without a personal identification number, the following documents shall be provided: A copy of the valid passport of the individual or dependent or a copy of other valid personal identification papers (if there is no passport).

The income-paying agency shall keep the tax registration dossier (in the form of paper or electronic document) and provide it when the tax authority conducts tax inspection.

3. Taxpayers are only required to register and submit documents proving that each dependent is eligible for family circumstance deduction once during the period of calculation of family circumstance deduction. In case the taxpayer changes his/her place of work, the taxpayer is responsible for providing a dossier of dependents identification in accordance with the law on personal income tax to the new income-paying agency for family circumstance deduction as prescribed.

Decree No. 254/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration No. 108/2025/QH15 on e-Invoices and e-Tax Withholding Certificates

On June 30, 2026, the Government issued Decree 254/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration No. 108/2025/QH15 on e-invoices and electronic tax withholding receipts (Decree 254). In which, the contents related to tax withholding certificate are specified in detail as follows:

1. When deducting personal income tax, organizations and individuals that withhold tax must make electronic certificates and hand them over to the income earners subject to tax deduction and must fully record the contents as prescribed in Article 23 of this Decree (as below) and in standard data format.

2. Specific contents of personal income tax withholding certificate include:

• Name of the tax withholding certificate; symbol of the template, symbol of the tax withholding certificate, serial number of the tax withholding certificate;
• Name, address, and tax code of the organization or individual paying the income;
• Name, address, telephone number, and tax code of the individual receiving the income (if the individual already has a tax code), or personal identification number;
• Nationality (if the taxpayer is not a Vietnamese citizen);
• Type of income, time of income payment, total taxable income, mandatory insurance contributions; charitable, humanitarian, and educational contributions; amount of tax withheld;
• Date of issuance of the tax withholding certificate;
• Full name and signature of the income payer.

In the case of using electronic personal income tax withholding certificates, the signature on the electronic certificate is a digital signature.

3. Certificates prepared in accordance with the regulations on document content (as mentioned above) are legal documents for payment, accounting, and financial settlement. If certificates do not comply with the regulations on document content (as mentioned above), they are invalid for payment and cannot be used for accounting or financial settlement. The preparation of electronic certificates must ensure that they fully and truthfully reflect the transactions that occur; and comply with the regulations of the law on electronic transactions, the law on accounting, and the law on taxes, fees, and charges.

4. Converting electronic documents into paper documents: ensuring the accuracy and consistency between the content of the electronic document and the paper document after conversion, meeting the requirements of Clause 2, Article 12 of the Law on Electronic Transactions;

Circular No. 91/2026/TT-BTC stipulating a number of articles of the Law on Tax Administration and the Government’s Decree No. 254/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration No. 108/2025/QH15 on e-Invoices and e-Tax Withholding Certificates

On June 30, 2026, the Ministry of Finance issued Circular 91/2026/TT-BTC stipulating a number of articles of the Law on Tax Administration and the Government’s Decree No. 254/2026/ND-CP detailing a number of articles and measures to organize and guide the implementation of the Law on Tax Administration No. 108/2025/QH15 on e-invoices and tax withholding certificates (Circular 91). In which, the contents related to tax withholding certificates are specified in detail as follows:

1. Handling of issued PIT withholding certificate: The Circular clarifies which cases require notification of errors and which cases require the issuance of replacement documents.

• • In cases of errors in the contents of the document such as name, address, amount in words, or other contents, but not in the tax code or the amount recorded on the document, the organization issuing the electronic document shall notify the recipient of the electronic document that the document is incorrect and does not need to reissue the document. The organization issuing the electronic document shall notify the tax authority about the incorrect document using Form No. 04/SS-CTĐT.
  • In cases where the electronic document is incorrect, other than those stipulated in Clause 1 of this Article, the organization issuing the electronic document shall replace the incorrect electronic document.

2. Symbol of Electronic PIT withholding certificate template:

• • The document template symbol is 03/TNCN
  • The document code consists of six characters, including both letters and numbers, as follows:
    • The first two letters “CT” are the abbreviation of the document;
    • The next two characters are two Arabic numerals representing the year the electronic personal income tax withholding certificate was issued, determined by the last two digits of the calendar year;
    • The last two characters are letters determined by the tax-withholding organization or individual based on management needs. If the tax-withholding organization or individual uses multiple electronic certificate forms of the same type, the last two characters are used to distinguish the forms;

    Example: 03/TNCN_CT26AA: Electronic personal income tax withholding certificate issued to taxpayers in 2026.

  • The electronic personal income tax withholding certificate number is the sequential number shown on the electronic personal income tax withholding certificate. The electronic personal income tax withholding certificate number is written in Arabic numerals with a maximum of eight digits, starting from 01 on January 1st or the date of commencement of use of electronic personal income tax withholding certificates, and ending on December 31st of each year;

Decree No. 283/2026/ND-CP stipulating penalties for administrative violations in the field of labor, social insurance, Vietnamese workers working abroad under contracts

On July 15, 2026, the Government issued Decree 283/2026/ND-CP stipulating penalties for administrative violations in the field of labor, social insurance, and Vietnamese workers working abroad under contracts.

Accordingly, the Decree provides for administrative violations, sanctioning forms, sanctioning levels, remedial measures for administrative violations, competence to make records of administrative violations, competence to sanction administrative violations, enforcement of sanctioning forms of administrative violations, and the implementation of administrative penalties and remedial measures in the following areas:

• Labor, including employment, recruitment and labor management; working conditions and labor relations; occupational safety and hygiene; grassroots employee representative organizations;
• Social insurance;
• Vietnamese workers working abroad under contracts.

In addition, the Decree also stipulates the fines for violations of regulations on recruitment and labor management as follows:

• A fine of between VND 1,000,000 and VND 3,000,000 shall be imposed on the employer when:
  • Failing to declare the use of labor as prescribed;
  • Collecting money from employees participating in recruitment;
  • Failing to record or fully enter the employee’s information in the labor management book from the date the employee starts working;
  • Failing to produce labor management books at the request of competent agencies.
• A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed on organizations and individuals when:
  • Discrimination in labor (except for cases separately specified in other articles of the Decree);
  • Employing laborers who have not been trained or do not have national vocational skills certificates for compulsory occupations and jobs;
  • Failing to report the situation of labor changes as prescribed.
• A fine of between VND 50,000,000 and VND 75,000,000 shall be imposed for the following acts: Enticing, inducing, making promises, falsely advertising, or using other tricks to deceive employees or recruit for the purpose of exploitation or forced labor but not serious enough to be examined for penal liability.

Sincerely,
Talentnet Corporation