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 organize and guide the implementation, of the Law on Personal Income Tax

Pursuant to the Law on Personal Income Tax No. 109/2025/QH15, amended and supplemented under 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 organize 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 organizational structure of the Ministry of Industry and Trade, amended and supplemented under Decree No. 166/2025/ND-CP;

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

The Minister of Finance hereby 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 organize and guide the implementation, of the Law on Personal Income Tax.

Article 1. Scope of regulation

This Circular specifies:

1. The income threshold serving as the basis for determining dependants in respect of whom taxpayers are entitled to claim family circumstance-based reductions as prescribed in Point b, Clause 4, Article 10 of the Law on Personal Income Tax No. 109/2025/QH15 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 organize and guide the implementation, of the Law on Personal Income Tax.

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

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

Article 2. Subjects of application

This Circular applies to organizations and individuals related to the scope of regulation specified in Article 1 of this Circular.

Article 3. Income threshold serving as the basis for determining dependants eligible for family circumstance-based reductions

1. The average monthly income during the year from all sources of income of a dependant prescribed at 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 shall not exceed VND 3 million.

2. Taxpayers shall determine that their dependants have no income or have an average monthly income during the year from all sources of income not exceeding the threshold prescribed in Clause 1 of this Article, and shall accurately and truthfully declare the income of their dependants. Where, during the course of implementation, a tax office discovers that the declaration is inaccurate, the taxpayer shall be handled in accordance with law.

Article 4. Dossiers for determining dependants eligible for family circumstance-based reductions under Clause 6, Article 47 of Decree No. 253/2026/ND-CP

1. The dossiers for determining a taxpayer's child as a dependant are prescribed as follows:

a) For a natural child: A copy of the child's birth certificate, or a copy of the decision on recognition of parent and child relationship, or a document issued by a competent agency certifying the parent-child relationship, and a copy of the child's identity card where the child has been issued an identity card;

b) For an adopted child: A copy of the child's birth certificate; a copy of the child's identity card where the child has been issued an identity card; and a copy of the decision on recognition of adoption/certificate of adoption issued by a competent state agency;

c) For the taxpayer's spouse's child or the taxpayer's stepchild: A copy of the child's birth certificate; a copy of the child's identity card where the child has been issued an identity card; and a copy of the taxpayer's marriage certificate or other documents issued by a competent agency proving the relationship with the taxpayer's spouse's child or the taxpayer's stepchild;

d) For a child aged 18 years or older who lacks civil act capacity or is a person with a disability, in addition to the documents proving the parent-child relationship corresponding to the cases specified at Points a, b, and c, Clause 1 of this Article, the dossier for determining the dependant shall additionally include a copy of the certificate of lack of civil act capacity in accordance with law or a copy of the disability certificate in accordance with the law on persons with disabilities;

dd) For a child studying at a university, college, professional secondary school, or vocational school, including a child aged 18 years or older who is attending upper secondary education (including the period from June through September of grade 12 while awaiting examination results), in addition to the documents proving the parent-child relationship corresponding to the cases specified at Points a, b, and c, Clause 1 of this Article, the dossier for determining the dependant shall additionally include a copy of the student card, a declaration certified by the educational institution, or other documents proving that the child is studying at a university, college, professional secondary school, upper secondary school, or vocational school.

2. The dossier for determining the taxpayer's spouse as a dependant is prescribed as follows: A copy of the identity card and a copy of the marriage certificate or other documents issued by a competent agency proving the marital relationship.

3. The dossier for determining the taxpayer's parents as dependants is prescribed as follows:

a) For the natural father or natural mother: A copy of the father's or mother's identity cards and a copy of the taxpayer's birth certificate, or a copy of the decision on recognition of parent and child relationship, or a document issued by a competent agency certifying the parent-child relationship;

b) For the adoptive father or adoptive mother: A copy of the father's or mother's identity card and a copy of the decision on recognition of adoption or the certificate of adoption issued by a competent state agency;

c) For the father-in-law or mother-in-law: A copy of the father's or mother's identity card; a copy of the birth certificate of the taxpayer's spouse; and a copy of the taxpayer's marriage certificate or other documents issued by a competent agency proving the marital relationship;

d) For the stepfather or stepmother: A copy of the identity card; a copy of the taxpayer's birth certificate; and a copy of the marriage certificate or other documents issued by a competent agency proving the marital relationship between the stepfather and the taxpayer's natural mother or between the stepmother and the taxpayer's natural father.

4. The dossier for determining helpless dependant whom the taxpayer is obliged to nurture directly: A copy of the identity card; a declaration of the person required to be nurture directly, using the form prescribed by the law on tax administration; documents proving the relationship between the taxpayer and the dependant; and documents proving that the taxpayer has a legal obligation to nurture the dependant in accordance with law (if any).

5. For a dependant who lacks working capacity, in addition to the documents proving the relevant relationship corresponding to the cases specified in Clauses 1, 2, 3, and 4 of this Article, the dossier for determining the dependant shall additionally include documents proving that the dependant has a working capacity reduction rate of 81% or more, as determined in accordance with law.

6. Taxpayers shall register and update their dependants in accordance with the law on tax administration and shall bear full legal responsibility for the accuracy of the registration and updating of dependants, as well as the declaration of the dependants' income prescribed in Clause 1, Article 3 of this Circular. Where an inaccurate declaration is detected, such taxpayer shall be handled in accordance with the law on tax administration and other relevant laws.

7. Where a resident who is a foreign national does not possess the dossiers prescribed for the respective cases specified above, he/she shall provide legal documents issued by competent agencies that satisfy the conditions for determining a dependant and establish the relationship between the taxpayer and the dependant.

8. Organizations and individuals paying income shall retain and provide sufficient dossiers proving dependants for the purposes of inspection, examination, audit, and other cases as prescribed by law.

9. Based on tax registration information, the tax office shall access and use information available in the National Public Service Portal, the information system for administrative procedure settlement, national databases, and specialized databases managed by state agencies that are shared and exploited in accordance with law as the basis for determining dependants eligible for family circumstance-based reductions.

Where the tax office is unable to access or use information for determining dependants from the National Public Service Portal, the information system for administrative procedure settlement, national databases, or specialized databases managed by state agencies that are shared and exploited in accordance with law, the taxpayer shall provide the documents related to the determination of dependants as prescribed in this Article.

Article 5. Personal income tax on the transfer of derivative securities under Clause 5, Article 54 of Decree No. 253/2026/ND-CP

1. The personal income tax on income from the transfer of derivative securities 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 derivative securities in the form of futures contracts, the transfer price shall be the transfer price of each futures contract. Accordingly, the transfer price of each futures contract shall be determined by multiplying the settlement price of the futures contract at the time of determining taxed income by (×) the contract multiplier, by (×) the number of contracts, and by (×) the initial margin ratio, and then dividing (÷) the result by 2.

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

3. Time of determination of taxed income

For derivative securities in the form of futures contracts, the time of determining taxed income shall be the time of matching of the buy or sell order for the futures contract of the investor on the trading system of the Stock Exchange or the time of maturity of the futures contract.

Article 6. Effect

1. This Circular takes effect from July 01, 2026. The provisions relating to income from business activities and income from salaries and wages of residents shall apply from the 2026 tax period.

2. This Circular replaces the Minister of Finance's Circular No. 111/2013/TT-BTC dated August 15, 2013, guiding 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 repeal the following provisions:

a) Article 2 of the Minister of Finance's Circular No. 119/2014/TT-BTC dated August 25, 2014, amending and supplementing a number of articles of the Ministry of Finance's Circular No. 156/2013/TT-BTC dated November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014, for reform and simplification of tax administrative procedures;

b) Chapter III of the Minister of Finance's Circular No. 151/2014/TT-BTC dated 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 of decrees on taxes;

c) Chapter III of the Minister of Finance’s Circular No. 92/2015/TT-BTC dated June 15, 2015, guiding the implementation of value-added tax and personal income tax incurred by resident individuals engaged in business activities, guiding amendments and supplementations on personal income tax under Law No. 71/2014/QH13 Amending and Supplementing a Number of Articles of the Tax Laws, and the Government’s Decree No. 12/2015/ND-CP dated February 12, 2015, detailing the Law Amending and Supplementing a Number of Articles of the Tax Laws, 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 dated March 16, 2018, guiding the implementation of the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017, and amending and supplementing a number of articles of the Ministry of Finance’ Circular No. 78/2014/TT-BTC dated June 18, 2014, and Circular No. 111/2013/TT-BTC dated August 15, 2013;

dd) Article 1 of the Minister of Finance's Circular No. 79/2022/TT-BTC dated December 30, 2022, amending and supplementing a number of legal documents promulgated 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 ones shall prevail./.