In the context of ongoing adjustments to Personal Income Tax regulations to better reflect economic and social conditions, Resolution No. 110/2025/UBTVQH15 introduces new personal and dependent deduction levels that will take effect from the 2026 tax period. Updating these deduction values accurately is essential not only to ensure legal compliance, but also to maintain the correctness of tax withholding, payroll operations, and annual PIT finalization.
This article provides a concise overview of the new regulation, explains its practical impacts on businesses, and guides users on how to update the corresponding configuration in the Viindoo Payroll system.
New regulations on Personal and Dependent Tax deductions applicable from January 1, 2026
According to Resolution No. 110/2025/UBTVQH15 of the Standing Committee of the National Assembly, the personal and dependent deductions applied in the calculation of Personal Income Tax (PIT) have been revised and will take effect from January 1, 2026, specifically for the 2026 tax year and onward.
New personal and dependent deduction levels
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Taxpayer: VND 15.5 million per month (equivalent to VND 186 million per year)
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Each dependent: VND 6.2 million per month
Important notes on effectiveness
- The new regulations are not applied retroactively to tax periods prior to 2026.
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Enterprises are required to apply the new deduction levels starting from the first payroll period of 2026 when withholding Personal Income Tax (PIT) for employees.
- Updating the deduction levels is the responsibility of the enterprise, regardless of whether employees have any changes in their personal or dependent information.
Impacts of the New regulations on Businesses
The adjustment of personal and dependent deduction levels does not merely change the numerical parameters used in tax calculation formulas; it also has a direct impact on PIT withholding, payroll operations, and tax accounting processes within the enterprise. The following are the key implications that managers, accountants, and HR personnel should pay special attention to.
Impact on tax withholding and employees’ income
The increase in personal and dependent deductions reduces taxable income, resulting in a lower amount of Personal Income Tax (PIT) withheld on a monthly basis.
For some employees who were previously close to the taxable income threshold, Personal Income Tax may no longer arise from 2026 onward.
Impact on payroll operations and tax accounting
If the system is not updated in a timely manner, businesses may:
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Over-withhold or under-withhold Personal Income Tax (PIT).
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Encounter discrepancies between payroll records, accounting documents, and tax declarations.
Subsequent corrections often require retrospective adjustments, which are time-consuming and require significant reconciliation efforts.
Risks in tax finalization and tax inspections
Payroll data that does not correctly reflect the effective date of January 1, 2026 may lead to:
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An increased workload for explanations during tax finalization.
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The risk of being required to adjust or supplement tax dossiers.
Therefore, proper system configuration from the outset is a critical factor.
How to update Personal and Dependent deductions on Viindoo
To ensure that the payroll system calculates correctly according to the new deduction levels starting from the January 2026 payroll period, the enterprise needs to reconfigure the Personal Income Tax rule in the system before generating the new payroll. The steps to perform this in Viindoo are as follows.
Before you begin: Make sure you have Administrator access in the Payroll module.
The configuration should be carried out during the following timeframe:
- after the December 2025 payroll has been created
- and, before the January 2026 payroll is created
to ensure that the system automatically calculates Personal Income Tax (PIT) based on the new deduction levels
Step 1: Navigate to Payroll ‣ Configuration ‣ Personal Tax Rules.
Step 2: Select the Personal Income Tax rule that was previously applied to tax base deductions.
Step 3: Adjust the values of the two fields “Personal Tax Base Deduction” and “Base Deduction on each Dependent” according to the new deduction levels stipulated in Resolution No. 110/2025/UBTVQH15.
Conclusion
Updating the new deduction levels in a timely manner not only helps businesses comply with legal regulations, but also minimizes the risk of discrepancies in payroll, tax withholding, and annual PIT finalization. If the January 2026 payroll has already been generated before the configuration update, businesses should review the data and make the necessary adjustments to ensure accuracy.
If you have any questions or encounter difficulties during the process, you can submit your inquiries on the Viindoo Forum for support.
