In response to the need to reform tax policy to keep pace with the development of the modern economy and society, the Personal Income Tax (PIT) regime is also under review and amendment to ensure fairness and alignment with current realities. The Draft Personal Income Tax Law 2026 has drawn considerable attention from both individuals and businesses, particularly regarding the groups of income that will be newly subject to taxation. These upcoming regulations are expected to affect, to varying degrees, personal financial planning as well as business operations of many stakeholders.
This article, prepared by DNP Vietnam Law Firm, is intended to provide readers with accurate insights into the key changes introduced in the Draft PIT Law 2026, with a special focus on the new income groups expected to be declared and taxed.
1. Taxable income categories
Legal basis: Article 3, Draft PIT Law 2026.
- Income from e-commerce activities and business operations conducted on digital platforms;
- Income from business activities under this provision does not include income of households or individuals engaged in production or business with annual revenue of VND 200 million or less;
- Winnings from games, contests, and other prize-based activities, except winnings in casinos;
- Income from the transfer of the Vietnamese national domain name “.vn”;
- Income from the transfer of emission reduction certificates, carbon credits, and green bonds;
- Income from the transfer of vehicle license plates obtained through auction (together with the vehicles carrying such auctioned plates);
- Income from the transfer of digital assets (virtual assets, tokenized assets);
- Income from the use, ownership, or transfer of other assets as prescribed by the Government.
Compared to Article 3 of the 2007 PIT Law (amended in 2012), the new draft introduces several additions and clarifications tailored to the digital economy. First, while the business income category still covers production, services, and independent professional practice, the draft explicitly adds income from e-commerce and digital-platform businesses, while setting a clear threshold of VND 200 million per year below which no tax is levied. By contrast, the 2007 Law merely delegated detailed thresholds to Government regulation without specifying figures in the statute itself.
For wage and salary income, the draft maintains the general scope but elaborates on allowances and benefits subject to taxation or exemption, reflecting newer schemes such as start-up support and digital transformation incentives. The taxable scope of winnings has also been broadened, extending beyond lotteries, promotions, and betting (as in the old law) to include modern forms such as online prize games, competitions with awards, and other new prize-based mechanisms.
2. Assessment of the impact of the new regulations
- For individuals engaged in online business/digital economy: The new rules enhance transparency in e-commerce activities, reduce tax losses, and foster a fairer competitive environment. However, the requirement to declare and pay taxes may increase administrative burdens for small-scale entrepreneurs, especially those unfamiliar with formal financial management.
- For special income sources (auctioned license plates, digital assets, carbon credits): Taxing these income streams ensures that the State captures significant revenue sources and aligns with global trends in asset regulation. Nevertheless, major challenges remain in establishing valuation mechanisms, monitoring transactions, and developing a coherent legal framework to prevent tax evasion or disputes.
- For winnings-based income: Expanding the taxable scope to include online games with prizes, competitions, and other modern reward forms ensures the law keeps pace with practical developments. That said, a transparent mechanism for determining the value of prizes, particularly non-cash rewards or those linked to digital assets, is essential to avoid difficulties in tax collection and compliance.
“The above content is provided by DNP Viet Nam Law Firm for reference purposes only. For detailed, accurate, and tailored legal advice that meets your specific needs, please contact us using the information provided below.”
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