Circular 87/2026/TT-BTC detailing the Law on Personal Income Tax and Decree 253/2026/ND-CP

CIRCULAR

Detailing a number of articles of the Law on Personal Income Tax and the Government’s Decree No. 253/2026/ND-CP detailing a number of articles, and providing measures to organise and guide the implementation, of the Law on Personal Income Tax^[1]

Pursuant to Law No. 109/2025/QH15 on Personal Income Tax, which is amended and supplemented by Law No. 09/2026/QH16;

Pursuant to the Government’s Decree No. 253/2026/ND-CP detailing a number of articles, and providing measures to organise and guide the implementation, of the Law on Personal Income Tax;

Pursuant to the Government’s Decree No. 29/2025/ND-CP defining the functions, tasks, powers and organisational structure of the Ministry of Finance, which is amended and supplemented by Decree No. 166/2025/ND-CP;

At the proposal of the Director of the Department for Management and Supervision of Tax, Fees and Charges Policies;

The Minister of Finance promulgates the Circular detailing a number of articles of the Law on Personal Income Tax and the Government’s Decree No. 253/2026/ND-CP detailing a number of articles, and providing measures to organise and guide the implementation, of the Law on Personal Income Tax.

Article 1. Scope of regulation

This Circular provides:

1. The income level used as a basis for determining dependants for taxpayers to be eligible for family circumstance-based reductions as specified in Point b, Clause 4, Article 10 of Law No. 109/2025/QH15 on Personal Income Tax; and Point c, Clause 2, and Points a and b, Clause 3, Article 47 of the Government’s Decree No. 253/2026/ND-CP detailing a number of articles, and providing measures to organise and guide the implementation, of the Law on Personal Income Tax.

2. Dossiers for determining dependants for taxpayers to be eligible for family circumstance-based reductions as specified in Clause 6, Article 47 of Decree No. 253/2026/ND-CP.

3. Personal income tax on income from the transfer of derivatives as specified in Clause 5, Article 54 of Decree No. 253/2026/ND-CP.

Article 2. Subjects of application

This Circular applies to organisations and individuals covered by the scope of regulation specified in Article 1 of this Circular.

Article 3. The income level used as a basis for determining dependants for taxpayers to be eligible for family circumstance-based reductions

1. The average monthly income during the year from all sources of a dependant specified in Point b, Clause 4, Article 10 of the Law on Personal Income Tax; and Point c, Clause 2, and Points a and b, Clause 3, Article 47 of Decree No. 253/2026/ND-CP must not exceed VND 3 million.

2. Taxpayers shall determine their dependants who have no income or whose average monthly income from all sources during the year does not exceed the level specified in Clause 1 of this Article, and shall accurately and truthfully declare their dependants’ income. If tax authorities detect any inaccurate declarations by taxpayers, the taxpayers shall be handled in accordance with law.

Article 4. Dossiers for determining dependants for taxpayers to be eligible for family circumstance-based reductions as specified in Clause 6, Article 47 of Decree No. 253/2026/ND-CP

1. A dossier for determining a dependant who is a child of a taxpayer must comprise:

a/ For a biological child: a copy of the child’s birth certificate or a copy of the decision on recognition of the parent-child relationship or the competent agency’s written certification of the parent-child relationship, and a copy of the child’s identity card if it has been issued;

b/ For an adopted child: a copy of the child’s birth certificate; a copy of the child’s identity card if it has been issued, and a copy of the competent agency’s decision on recognition/written certification of adoption;

c/ For a stepchild of the wife or husband: a copy of the child’s birth certificate; a copy of the child’s identity card if it has been issued; and a copy of the taxpayer’s marriage certificate or another document issued by the competent agency proving the relationship with the wife’s or the husband’s stepchild;

d/ For a child aged 18 years or older who has lost civil capacity act or who is a person with disabilities, in addition to the document proving the child relationship in the case specified in Point a, b or c, Clause 1 of this Article, the dossier must comprise also a copy of the certificate of loss of civil act capacity in accordance with law or a copy of the certificate of disability in accordance with the law on persons with disabilities;

dd/ For a child attending a university, college, professional secondary school or vocational training school, including a child aged 18 years or older attending a general education school (including the period awaiting the exam result from June to September of the 12^th grade), in addition to the dossier components proving the child relationship in the case specified in Points a, b, or c, Clause 1 of this Article, the dossier must also comprise a copy of the student card or a declaration certified by the school or another document proving his/her attendance in the university, college, professional secondary school or upper-secondary school or vocational training school.

2. A dossier for determining a dependant who is the taxpayer’s spouse must comprise a copy of the identity card and a copy of the marriage certificate or another document proving the marital relationship issued by a competent agency.

3. A dossier for determining a dependant who is the taxpayer’s parent must comprise:

a/ For a biological parent: a copy of the parent’s identity card and a copy of the taxpayer’s birth certificate, or a copy of the decision on the recognition of the parent-child relationship or the competent agency’s written certification of the parent-child relationship;

b/ For an adoptive parent: a copy of the parent’s identity card; a copy of the decision on recognition/certificate of adoption issued by a competent state agency;

c/ For a parent-in-law: a copy of the parent’s identity card; a copy of the birth certificate of the taxpayer’s spouse and a copy of the taxpayer’s marriage certificate or another document proving the marital relationship issued by a competent agency;

d/ For a stepfather or stepmother: A copy of the stepfather’ or stepmother’s identity card; a copy of the taxpayer’s birth certificate; a copy of the marriage certificate or another document proving the marital relationship between the taxpayer’s stepfather and biological mother, or between the taxpayer’s stepmother and biological father, issued by a competent agency.

4. A dossier for determining a dependant who is among other individuals whom the taxpayer is responsible for directly supporting: a copy of the identity card; a declaration of the person whom the taxpayer is responsible for directly supporting, made according to the form provided in the law on tax administration; a document proving the relationship between the taxpayer and the dependant; and a document proving the taxpayer’s obligation to support the dependant in accordance with law (if any).

5. For a dependant who is unable to work, in addition to the dossier components proving the relationship in the case specified in Clauses 1, 2, 3 or 4 of this Article, the dossier must also comprise a document proving that the person has a disability rate of 81% or higher in accordance with law.

6. Taxpayers shall register or change dependants in accordance with the law on tax administration and shall take responsibility before law for the accuracy of the registration or change of dependants and the declaration of the dependants’ income as specified in Clause 1, Article 3 of this Circular. In case of untruthful declaration, they shall be handled in accordance with the law on tax administration and other relevant laws.

7. In case a resident individual is a foreigner that does not have the required dossier for each specific case mentioned above, he/she shall provide legal documents issued by a competent agency, ensuring the satisfaction of the conditions for being considered a dependant and demonstration the relationship between the taxpayer and the dependant.

8. Income-paying organisations and individuals shall retain and provide complete dossiers proving dependants for inspection, examination and audit, and in other law-specified cases.

9. Based on the tax registration information, tax authorities shall exploit and use information data in the National Public Service Portal, the information system for settlement of administrative procedures, national databases, and specialised databases managed by state agencies that are shared and exploited in accordance with law for use as a basis for determining dependants for taxpayers to be eligible for family-circumstance reductions.

In case tax authorities cannot exploit and use data for determining eligible dependants in the National Public Service Portal, the information system for settlement of administrative procedures, national databases, and specialised databases managed by state agencies that are shared and exploited in accordance with law, the taxpayers shall provide related documents for determining their dependants under this Article.

Article 5. Personal income tax on the transfer of derivatives as specified in Clause 5, Article 54 of Decree No. 253/2026/ND-CP

1. Personal income tax on income from the transfer of derivatives shall be determined by multiplying (×) the transfer price by the tax rate of 0.1% for each transfer.

2. The transfer price shall be determined as follows:

For the transfer of derivatives that are futures contracts, the transfer price shall be the transfer price of the futures contract for each transaction. In which, the transfer price of the futures contract for each transaction shall be determined as the settlement price of the futures contract at the time of determination of assessable income multiplied (×) by the contract multiplier, multiplied (×) by the number of contracts, multiplied (×) by the initial margin ratio, and divided (:) by 2.

The initial margin ratio shall be announced by the Vietnam Securities Depository and Clearing Corporation under regulations.

3. Time of determining assessable income

The time of determining assessable income for derivatives in the form of futures contracts is the time when the investor’s purchase or sale order for the futures contract is matched on the Stock Exchange’s trading system or the time the futures contract expires.

Article 6. Effect

1. This Circular takes effect on July 1, 2026. The contents related to income from business activities, salaries and wages of resident individuals shall apply from the 2026 tax year.

2. This Circular replaces the Minister of Finance’s Circular No. 111/2013/TT-BTC of August 15, 2013, guiding the implementation of the Law on Personal Income Tax, the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax, and the Government’s Decree No. 65/2013/ND-CP detailing a number of articles of the Law on Personal Income Tax and the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax.

3. To annul:

a/ Article 2 of the Minister of Finance’s Circular No. 119/2014/TT-BTC of August 25, 2014, amending and supplementing a number of articles of Circular No. 156/2013/TT-BTC of November 6, 2013; Circular No. 111/2013/TT-BTC of August 15, 2013; Circular No. 219/2013/TT-BTC of December 31, 2013; Circular No. 08/2013/TT-BTC of January 10, 2013; Circular No. 85/2011/TT-BTC of June 17, 2011; Circular No. 39/2014/TT-BTC of March 31, 2014; and Circular No. 78/2014/TT-BTC of June 18, 2014, on reform and simplification of tax-related administrative procedures;

b/ Chapter III of the Minister of Finance’s Circular No. 151/2014/TT-BTC of October 10, 2014, guiding the implementation of the Government’s Decree No. 91/2014/ND-CP of October 1, 2014, amending and supplementing a number of articles in the Decrees on taxes;

c/ Chapter III of the Minister of Finance’s Circular No. 92/2015/TT-BTC of June 15, 2015, guiding the implementation of value-added tax and personal income tax for resident individuals engaged in business activities; guiding the implementation of a number of contents on personal income tax-related amendments and supplementations under Law No. 71/2014/QH13 Amending and Supplementing a Number of Articles of the Laws on Taxes; and the Government’s Decree No. 12/2015/ND-CP of February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Laws on Taxes and amending and supplementing a number of articles of the Decrees on taxes;

d/ Article 4 of the Minister of Finance’s Circular No. 25/2018/TT-BTC of March 16, 2018, guiding the Government’s Decree No. 146/2017/ND-CP of December 15, 2017, and amending and supplementing a number of articles of Circular No. 78/2014/TT-BTC of June 18, 2014, and Circular No. 111/2013/TT-BTC of August 15, 2013;

dd/ Article 1 of the Minister of Finance’s Circular No. 79/2022/TT-BTC of December 30, 2022, amending and supplementing a number of legal documents issued by the Ministry of Finance.

4. In case the legal documents referred to in this Circular are amended, supplemented or replaced, the amending, supplementing or replacing documents shall prevail.-

For the Minister of Finance
Deputy Minister
CAO ANH TUAN