Key PIT changes under Decree 253/2026/ND-CP & Circular 87/2026/TT-BTC

3 August 2026

On 30 June 2026, the Vietnamese Government and the Ministry of Finance issued Decree No. 253/2026/ND-CP and Circular No. 87/2026/TT-BTC on Personal Income Tax (“PIT”), providing important clarifications on employment income, tax deductions, withholding obligations, and PIT finalization procedures.

Decree No. 253/2026/ND-CP and Circular No. 87/2026/TT-BTC took effect on 1 July 2026 and apply from the 2026 tax period for business income, employment income, and the income of tax residents, while the increased tax-exempt meal allowance cap applies specifically from 1 July 2026. Overall, the Decree and Circular retain the existing Personal Income Tax compliance framework, while introducing several important amendments to key regulations. In this Tax Alert, Forvis Mazars Vietnam provides an overview of the key changes under the Decree and Circular that may have significant implications for PIT compliance in Vietnam.

The key changes introduced under Decree 253/2026/ND-CP and Circular 87/2026/TT-BTC:

1. Expansion of tax-exempt employment income

2. New deductions and tax incentives

3. Changes to dependent eligibility and management

4. Changes to tax withholding and PIT finalization obligations

5. Clarification of the tax treatment of ESOP and bonus shares

How we can help?

Navigating Vietnam's evolving Tax and Legal environment requires timely insights and practical guidance. Our Tax specialists can support businesses in assessing compliance risks, optimizing tax positions, and adapting effectively to regulatory changes.

Please refer to the full updates in the Download section below.

Document

[ENG] Forvis Mazars in Viet Nam Alert_Tax updates_Key PIT changes under Decree 253

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Contacts

Minh Nguyen Partner, Head of Advisory

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Da Nguyen Minh Partner, Tax

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