DECREE 253/2026/ND-CP: SOME NOTEWORTHY POINTS ON PERSONAL INCOME TAX

On 30 June 2026, the Government issued Decree No. 253/2026/ND-CP prescribing detailed provisions and measures for the implementation of the Law on Personal Income Tax ("PIT").

In addition to the contents covered in our previous newsletter on the new Law on PIT, below are certain notable points for enterprises, employers, and employees. Please refer to our previous newsletter on the new Law on PIT at this link: W&A_Newsletter on the Law on Personal Income Tax

The key highlights analyzed in this newsletter include:

• Income from wages and salaries;

• Deductions for calculating tax on wages and salaries;

• Non-taxable allowances, subsidies, and benefits;

• Income from capital transfer;

• Overtime pay, night shift pay, and unused annual leave pay;

• Tax exemption for transfer of open-ended fund certificates;

• Tax withholding on casual income;

• PIT on bonus shares and ESOPs;

• Conversion of income in foreign currency and in kind.

👉 Please refer to the full newsletter here:

W&A Newsletter-Decree 253 on Personal Income Tax-EN.pdf

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W&A'S PIT AND HR ADVISORY SERVICES

With a team of experts in tax, labor, and human resources, W&A assists enterprises in developing and operating human resource policies in line with legal regulations, while optimizing practical PIT compliance.

W&A provides PIT consulting and compliance services, including:

• Reviewing policies on salary, bonus, allowance, benefits, and other payments to employees;

• Advising on tax treatments for foreign experts, foreign labor, ESOP, bonus shares, and other specific income items;

• Assisting in periodic and annual declaration, withholding, and finalization of PIT;

• Conducting PIT Healthchecks and preparing documentation for tax audits and inspections;

• Representing or supporting enterprises in working and explaining with tax authorities upon the occurrence of disputes.

  
  

W&A also assists enterprises in human resource and labor matters, including:

• Developing or reviewing labor contracts, salary and bonus regulations, financial regulations, and benefit policies;

• Advising on working hours, overtime work, leaves, labor discipline, contract termination, and severance allowances;

• Reviewing compliance with labor laws, social insurance, and related obligations;

• Assisting in the development of personnel structures, authorization systems, and HR management processes;

• Consulting and supporting labor and tax procedures for experts and foreign workers in Vietnam.

Establishing transparent HR policies, comprehensive documentation, and appropriate payment mechanisms not only helps enterprises ensure legal compliance but also mitigates risks during tax and labor inspections.