Personal Income Tax (“PIT”) changes in 2020

PwC Legal Vietnam

9th June 2020

The National Assembly has approved the new PIT changes in their recent meeting to increase personal and dependant relief in 2020.

The National Assembly has approved the new PIT changes in their recent meeting to increase personal and dependant relief in 2020. Based on the Resolution 954/2020/UBTVQH14 (“Resolution 954”) issued on 2 June 2020, the personal and dependant relief stipulated in Clause 1 Article 19 of the Law on PIT is updated as below:

• Personal relief is increased from VND9mil/month to VND11mil/month.

• Dependant relief is increased from VND 3.6mil/month to VND4.4mil/month.

Although Resolution 954 is effective from 1 July 2020, the increase is effective from 1 January 2020.

Taxpayers shall not amend their submitted provisional PIT liability, instead the annual PIT liability shall be calculated based on the increase relief amount.

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