Employment Tax

Vietnam | Update on tax filing frequency for salary and wage income

Summary

The Ministry of Finance (“MOF”) has issued Decision No. 1109/QD-BTC, effective from 8 May 2026, introducing a key change to the filing frequency for Personal Income Tax (“PIT”) on salary and wage income. Under this new regulation, filings will shift from a monthly to a quarterly basis.

This update is part of the Government’s broader administrative reform initiatives aimed at simplifying compliance procedures and reducing administrative burdens for businesses and individuals in Vietnam.

The detail

Key Changes

• Quarterly PIT filing is now mandatory for salary and wage income.
• No eligibility conditions required (previous link to quarterly Value-added tax filing criteria has been removed).
• Applies to PIT declarations made by income paying organisations in Vietnam.

Timeline and Practical Considerations

• The first quarterly return will be Q2/2026, due by 31 July 2026.
• The tax system has stopped accepting monthly filings via the portal as of 20 May 2026.
• April 2026 filing submitted before the system update appears to have been accepted without issue.
• Effective period: from 8 May 2026 to 28 February 2027, or earlier should the relevant Circular be issued prior to that date.

What this means

This change is expected to:

• Reduce compliance workload and administrative costs.
• Simplify tax filing processes.
• Aligning with ongoing government efforts to streamline tax administration.

However, given the rapid implementation, local tax authorities are still finalising guidance, particularly regarding transitional matters such as April 2026 filing.

Businesses should:

• Transition internal processes to accommodate quarterly PIT reporting.
• Monitor further guidance from tax authorities.
• Seek advice if there are uncertainties during the transition period.

How we can support

We will continue to monitor developments closely and provide further updates, including any necessary action steps, once official guidance has been finalised.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Brittany Chong
Partner

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