Blog · Vietnam
Vietnam Freelance Tax: What's Changing from 2025 to 2026
Vietnam's personal income tax framework is evolving. Here's what freelancers need to know about the key changes and how they affect your tax bill.
Vietnam has been updating its tax framework to keep pace with a growing digital economy. For freelancers and self-employed individuals (known locally as hộ kinh doanh or individual business households), there are several important changes to understand between the 2025 and 2026 tax years.
Personal Income Tax (PIT) for Freelancers
Freelancers in Vietnam who earn over VND 100 million per year are subject to personal income tax. The current system works as follows:
| Component | 2025 | 2026 (proposed changes) |
|---|---|---|
| Threshold for PIT | VND 100M/year | Under review — may increase |
| Personal deduction | VND 11M/month (VND 132M/year) | Potential increase |
| Dependent deduction | VND 4.4M/month per dependent | Potential increase |
| Tax rate for business income | Progressive (5%-35%) on revenue | Same structure, brackets may adjust |
The VND 100 Million Threshold
If your annual revenue is VND 100 million or less, you are exempt from personal income tax on your business income. This is one of the most generous thresholds in Southeast Asia.
If your revenue exceeds VND 100 million, the entire revenue (not just the excess) is subject to tax. So earning VND 101 million triggers tax on the full amount, not just VND 1 million.
How Business Income Tax Works for Freelancers
For individual business households, Vietnam uses a presumptive method based on revenue, not profit:
- Determine your business category: Distribution & supply (1%), Manufacturing & construction (1.5%), Services & business cooperation (5%)
- Calculate presumptive profit: Revenue × presumptive profit ratio for your category
- Apply progressive PIT rates: 5% on first VND 100M, 10% on next VND 50M, 15% on next VND 100M, 20% on next VND 100M, 25% on next VND 100M, 30% on next VND 100M, 35% above VND 520M
For most freelancers (classified under services at 5% presumptive profit ratio):
| Annual Revenue | Presumptive Profit (5%) | Estimated PIT |
|---|---|---|
| VND 100M | VND 5M | Exempt |
| VND 200M | VND 10M | VND 500K |
| VND 500M | VND 25M | VND 1.25M |
| VND 1B | VND 50M | VND 2.5M |
| VND 2B | VND 100M | VND 5M |
As you can see, the tax burden on freelancers in Vietnam is relatively low — especially when you consider that the presumptive profit ratio assumes a 95% cost rate for services.
Value Added Tax (VAT) for Freelancers
In addition to PIT, you may owe VAT if your revenue exceeds VND 100 million per year:
- VAT rate for services: Generally 10% (reduced to 8% under certain government stimulus programs)
- Calculation: Revenue × VAT rate
- Exemption: Revenue ≤ VND 100 million/year = no VAT
Key Changes to Watch in 2026
While specific legislation for 2026 is still being finalized, the following changes are expected or under discussion:
- Higher personal deduction: The VND 11M/month personal deduction may increase to account for inflation and rising living costs.
- Digital economy provisions: New rules for platform-based workers and digital service providers are being developed.
- Simplified filing: The General Department of Taxation is working on e-filing improvements for individual taxpayers.
- Potential threshold increase: The VND 100M threshold for PIT may be raised.
Filing Requirements
- Monthly/quarterly declarations: If registered for presumptive tax
- Annual finalization: By March 30 of the following year
- E-filing: Available through thuedientu.gdt.gov.vn
Want to calculate your taxes? Try our Vietnam tax calculator or compare tax rates.