Vietnam - Overtime Payroll Localization
by Viindoo
| Lines of Code | 645 |
| Technical name | l10n_vn_viin_hr_payroll_overtime |
| License | OPL-1 |
| Website | https://viindoo.com/apps/modules/19.0/l10n_vn_viin_hr_payroll_overtime |
| Read description for | v 17.0 v 18.0 |
| Required Apps | Time Off (hr_holidays) Discuss (mail) Employees (hr) Calendar (calendar) |
| Included Dependencies | Payroll Vietnam - Payroll Employee Relatives Viindoo Base Overtime Advanced HR Management HR Contracts (Viindoo) Overtime Payroll Work Entry Work Entry - Contract Viin Time-Off Base Addendum Viin - Holiday Work Entry Viindoo Holiday & WorkDay Manager Safe IR Metadata Proxies |
The Vietnamese tax treatment of overtime pay, in place before the first payslip and dated for the next change
For payroll administrators of companies in Vietnam, and the consultants who set them up
Apply the Vietnamese tax treatment of overtime pay, with its legal dates
Works inside Overtime Payroll, which applies the treatment to each payslip, and follows the tax date of Vietnam - Payroll. It installs by itself when both are installed.
Is this you?
The rule on personal income tax for overtime pay changed for the 2026 tax period, and you want to be sure which overtime pay is exempt, and from which date.
Entering the rule and its dates by hand before the first payslip is slow, and a single wrong date changes a result.
Overtime worked in December but paid in January: which year's rule applies to it?
When someone asks why a payslip taxed or exempted an overtime amount, the answer lives in a spreadsheet or in someone's memory.
The law will change again, and overwriting the old rule would erase the basis of the payslips already computed.
What changes
The rule on personal income tax for overtime pay changed for the 2026 tax period, and you want to be sure which overtime pay is exempt, and from which date.
→ Install, then check: the treatment for overtime paid up to 2025 and the treatment from 2026 are already in place for every company in Vietnam, each with its legal basis cited in the user guide.
Entering the rule and its dates by hand before the first payslip is slow, and a single wrong date changes a result.
→ Up to 31 December 2025 only the pay above normal pay is exempt; from 1 January 2026 overtime within the Labour Code limits is exempt in full. The dates come with the data.
Overtime worked in December but paid in January: which year's rule applies to it?
→ The treatment follows the tax date of the payslip, which in Vietnam is its payment date: December 2025 overtime paid on 5 January 2026 follows the 2026 treatment.
When someone asks why a payslip taxed or exempted an overtime amount, the answer lives in a spreadsheet or in someone's memory.
→ Each payslip with overtime names the treatment its overtime pay followed, so the answer is on the payslip.
The law will change again, and overwriting the old rule would erase the basis of the payslips already computed.
→ Add a treatment with a start date and end the older one the day before: each payslip follows the treatment in force on its tax date, and the list shows both.
How it works
Review the treatments
The payroll administrator opens Overtime Tax Treatments in the Payroll configuration and checks the treatments of Vietnam and their dates. The payroll officer works from them.
Read the treatment on a payslip
The payroll officer computes payslips as usual and reads, on any payslip with overtime, which treatment its overtime pay followed.
Follow the law
When the law changes, the payroll administrator ends the treatment in force and adds a new dated one. Nothing else is rewritten.
Key Features
One list to review and keep current
Review the Vietnamese tax treatments of overtime pay in one list, and keep them current when the law changes. A treatment created for one company comes before those of its country, and updates of the module never overwrite your edits.
Up to 2025: the part above normal pay
Overtime paid up to the 2025 tax period is taxed on the hours at the normal rate and exempt on the extra part, as Circular 111/2013/TT-BTC sets.
From 2026: overtime within the Labour Code limits
From the 2026 tax period overtime within the hours and conditions of the Labour Code is exempt in full, as Law 109/2025/QH15 and Decree 253/2026/NĐ-CP set.
Named on the payslip
Each payslip of a Vietnamese company with overtime shows which treatment its overtime pay followed.
Who it is for
Payroll administrator
Checks the treatments after installation and adds a dated one when the law changes, without rebuilding anything.
Payroll officer
Computes payslips and reads which treatment each one used, so a figure can be explained.
Implementation consultant
Hands over Vietnamese payroll with the overtime tax treatment already in place, and spends the time on the company's own cases.
Finance or HR lead
Sees the legal basis and the dates of the treatment in one list, ready for a tax review.
Best for: companies in Vietnam that pay overtime through Odoo payroll and want its personal income tax treatment in place from the first payslip.
Check the overtime tax treatments of Vietnam
Open a treatment to see what it exempts and from when
Frequently Asked Questions
Which rules does it apply?
Up to the 2025 tax period only the pay above normal pay is exempt, as Circular 111/2013/TT-BTC (Article 3, clause 1, point i) sets. From the 2026 tax period overtime within the hours and conditions of the Labour Code is exempt in full, as Law 109/2025/QH15 (Article 4, clause 8 and Article 29, clause 2) and Decree 253/2026/NĐ-CP (Article 26, clause 1) set.
Does it separate overtime beyond the Labour Code limits?
No. A treatment applies to the overtime pay of a payslip as a whole. Pay for overtime beyond the hours and conditions of the Labour Code, or above the level the law sets, stays taxable income, and the payroll officer declares it as such.
What about employees who are not tax residents?
The treatments are written for residents. For an employee who is not a tax resident, the full exemption applies only to pay received from 1 July 2026. The treatment does not tell residents from non-residents, so the payroll officer declares the overtime pay of non-residents received before that date as taxable income.
Overtime worked in December 2025 is paid in January 2026. Which treatment applies?
The one in force on the tax date of the payslip, which in Vietnam is its payment date. Overtime paid on 5 January 2026 follows the treatment from 2026; overtime paid in December 2025 follows the one up to 2025.
What happens when the law changes again?
The payroll administrator sets the end date of the treatment in force to the day before the new rule starts and adds a treatment with its start date. Two treatments of the same scope cannot cover the same days, and a treatment already used by a payslip that is no longer a draft can be archived, not deleted.
Can one company follow its own rule?
Yes. A treatment created for a company comes before the treatments of its country for the days it covers.
Does an update overwrite what we changed?
No. The treatments are ordinary data, loaded once and left to the company.
Where do the Vietnamese overtime rates come from?
The legal rates and rules for planning overtime come with Vietnam - Overtime. This module is about the personal income tax of the overtime pay that results.
Do we need to install it ourselves?
No. It installs by itself when Overtime Payroll and Vietnam - Payroll are both installed, and applies to every company whose country is Vietnam, including one created later. A company in another country is not affected.
Who can see and change the treatments?
The treatments are in the Payroll configuration, for users with the Payroll / Administrator access right. Payroll officers read the treatment on the payslip.
Which Odoo version and edition are supported?
Odoo 19.0, Community edition.
Need help with Vietnam - Overtime Payroll Localization?
Pre-Sales & Partnership
viindoo.com/contactusTechnical Support
viindoo.com/ticketTechnical Requirement
- Odoo version: 19.0
- Editions: Odoo Community
- Required modules: Overtime Payroll, Vietnam - Payroll
- Installation: Installs automatically when both required modules are installed.
- License: OPL-1
Vietnam - Overtime Payroll Localization
Who this guide is for: the payroll administrators of a company in Vietnam, who check how the personal income tax of overtime pay is treated and keep it up to date with the law, and the payroll officers who read the result on the payslips.
Note
Extends Overtime Payroll - see the documentation of Overtime Payroll for the overtime tax treatments, the taxed and untaxed overtime lines of the payslip and the way a treatment is chosen.
Note
Extends Vietnam - Payroll - see the documentation of Vietnam - Payroll for the tax date of a payslip and the other legal values of Vietnamese payroll.
Overview
Whether the overtime pay of an employee is subject to personal income tax is set by law, and in Vietnam the law changed for the 2026 tax period. Entering the rules by hand, with the right dates, before the first payslip is slow and easy to get wrong. This module gives every company in Vietnam the two overtime tax treatments, ready to use and with their dates, as ordinary data that a payroll administrator can read, check and change.
| Treatment | Period | What is untaxed, and on what legal basis |
|---|---|---|
| Part paid above normal pay | Up to 31 December 2025 | Only the pay above the normal-hours pay is exempt from personal income tax: the overtime hours paid at the normal rate are taxed. Circular 111/2013/TT-BTC, Article 3, clause 1, point i. |
| All overtime pay | From 1 January 2026 | Overtime within the hours and conditions of the Labour Code is exempt in full. Law 109/2025/QH15, Article 4, clause 8 and Article 29, clause 2; Decree 253/2026/NĐ-CP, Article 26, clause 1. The excess over those limits is taxable (Decree 253/2026/NĐ-CP, Article 26, clause 3). |
Both treatments are written for residents. Two points stay with the payroll officer, because a treatment applies to the whole overtime pay of a payslip and does not separate them:
- the pay for overtime beyond the hours and conditions of the Labour Code, or above the level the law sets, is taxable income: declare it as such;
- for an employee who is not a tax resident, the full exemption applies only to pay received from 1 July 2026: declare the overtime pay of non-residents received before that date as taxable income.
The treatment of a payslip is the one in force on the Tax Date of the payslip, which in Vietnam is its Payment Date. Overtime worked in December 2025 and paid on 5 January 2026 therefore follows All overtime pay, and overtime paid in December 2025 follows Part paid above normal pay.
| Role | What they do | Access right to assign |
|---|---|---|
| Payroll Administrator | Checks the two treatments after installation and adds a dated treatment when the law changes | Payroll / Administrator |
| Payroll Officer | Computes payslips and reads the treatment each payslip used | Payroll / Officer |
Setup (for the Payroll Administrator)
Installation
The module installs by itself when the modules Overtime Payroll and Vietnam - Payroll are both installed. To install it by hand:
- Navigate to Apps.
- Remove the default filter and search for Vietnam - Overtime Payroll Localization.
- Press Install. The two modules above are installed with it if they are not there yet.
The treatments apply to every company whose country is Vietnam, including a company created later. A company in another country is not affected.
Access right
The treatments are in Payroll ‣ Configuration, which needs the access right Payroll / Administrator. To give it, navigate to Settings ‣ Users & Companies ‣ Users, open the user, and choose Administrator in the Payroll line of the access rights.
Payroll Administrator: check the treatments and follow the law
Check the treatments after installation
- Navigate to Payroll ‣ Configuration ‣ Payroll Entry ‣ Overtime Tax Treatments.
- Search for Vietnam in Country. The list shows the two treatments with their Untaxed Part, Date Start and Date End.
- Open a treatment to see its Untaxed Part, its dates and its Country. The Company is empty: the treatment is for every company of the country.
A treatment you create for one company comes before the treatments of its country: while a company has a treatment of its own for a day, it does not use the Vietnamese ones for that day.
Note
The treatments are ordinary data. A later update of the module never overwrites what you changed.
When the law changes
Add a new dated treatment; never rewrite the dates of one that payslips already used. A payslip you compute takes the treatment in force on its Tax Date, so changing a past treatment changes the result of every payslip computed again.
- Navigate to Payroll ‣ Configuration ‣ Payroll Entry ‣ Overtime Tax Treatments and open the treatment in force (the one with no Date End).
- Set its Date End to the day before the new rule starts, and save.
- Press New and fill in a Name, the Untaxed Part (Part paid above normal pay, All overtime pay or Nothing (all overtime pay taxed)) and the Date Start of the new rule.
- Set the Country to Vietnam so the treatment applies to every company of the country, or a Company for one company only. Save.
Two treatments of the same company, or of the same country without company, cannot cover the same days: the message tells you to end the older treatment the day before the newer one starts. A treatment that a payslip no longer in draft used cannot be deleted; archive it, and it applies to no new payslip.
Payroll Officer: read the treatment on a payslip
A payslip of a company in Vietnam that pays overtime names the treatment it used.
- Navigate to Payroll ‣ Payslips ‣ Payslips and open a payslip.
- On the Work Information tab, the Overtime Details section shows Overtime Tax Treatment above the overtime entries.
- On the Salary Computation tab, Taxed Overtime Work and Untaxed Overtime Work show the split the treatment gives.
The screens of the payslip are shown in the documentation of Overtime Payroll. A payslip with no overtime entries does not show the field. If the treatment named is not the one you expect, check the Payment Date of the payslip: it decides the tax period.
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