ECOVIS ACTA Consult

Enterprise accounting regime Vietnam: Circular No. 99/2025/TT-BTC for businesses

Personal Income Tax Deduction in Vietnam: An Increase in 2026

Vietnam is introducing updated personal income tax deductions to better reflect current living costs and support taxpayers. The experts from ECOVIS AFA Vietnam provide an overview of the key changes and their implications for individuals and families.

The National Assembly has recently approved Resolution No. 110/2025/UBTVQH15 on adjusting the family circumstance-based deduction level of personal income tax. Specifically:

• The deduction level for taxpayers has increased to 15.5 million VND per month (186 million VND/year). Under current regulations, individuals without dependents must pay personal income tax if their total income from salary and wages exceeds 11 million VND per month (132 million VND/year).
• Additionally, the deduction for each dependent has been increased to 6.2 million VND per month. Under current regulations, individuals with dependents receive a deduction of 4.4 million VND per dependent per month.

Resolution No. 110/2025/UBTVQH15 takes effect from January 1, 2026 and will apply to the 2026 tax period. At the same time, the National Assembly Standing Committee’s Resolution No. 954/2020/UBTVQH14 dated June 2, 2020, on adjusting the family deduction level of personal income tax, will cease to be effective.

With the new deduction rates, individuals can retain a larger portion of their income, especially households with small children or elderly family members to support. This decision has been positively received by the public, who believe the adjustment is timely and aligned with actual living conditions, ensuring that the policy provides fair and reasonable incentives, contributes to improving taxpayers’ living standards, and creates motivation to encourage work and productivity.

The above contents are researched and summarized by ECOVIS AFA Vietnam from widely published legal documents and articles. If you would like to discuss any issues in more in-depth, please contact us via the information below:

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Starting a Business in Japan?: Meet Akiyoshi Akasaki, Your Local Expert

Starting a business in Japan can seem complicated, especially for foreign investors. Akiyoshi Akasaki, Managing Partner of ECOVIS AKIA Tax Consultants in Yokohama, Japan, has built his career around helping foreign-affiliated companies and multinational clients navigate Japan’s complex tax and business landscape. A Certified Tax Accountant, Certified Labor and Social Security Consultant, and Certified Administrative Scrivener, Akiyoshi leads a multidisciplinary team that provides seamless support for foreign investors entering the Japanese market.

Akiyoshi’s firm focuses on tax and corporate advisory for foreign companies entering or operating in Japan, with his own expertise lying in corporate taxation, international tax advisory and business structuring for inbound investment. “We provide comprehensive one-stop support covering accounting, payroll, legal, and administrative matters,” Akiyoshi explains. “We focus on helping international clients establish a strong and compliant foundation for their operations in Japan.” ECOVIS AKIA’s clients include subsidiaries of European and Asian corporations, technology startups, trading firms and manufacturers. The firm also works closely with the global finance and HR teams of parent companies to ensure smooth communication and consistent compliance across borders.

Japan’s business environment offers strong opportunities but can be challenging for newcomers. “Foreign clients often find it difficult to navigate Japan’s detailed administrative procedures and documentation requirements,” Akiyoshi notes. “Language barriers, complex regulations, and strict compliance standards can make daily operations cumbersome.” He adds that digitalization is reshaping how companies manage compliance.  For instance, the introduction of the Qualified Invoice System (QIS) and revisions under the Electronic Bookkeeping Act (Dencho-ho) require firms to maintain secure digital records and adapt internal systems accordingly.

Akiyoshi highlights several trends shaping Japan’s business landscape. Annual tax law revisions and complex consumption tax rules, particularly around the QIS and cross-border electronic services, continue to affect foreign investors. Japan’s strong employee protection laws mean dismissals require careful legal compliance, while a shrinking labour pool has made skilled recruitment increasingly competitive. Meanwhile, tighter Financial Services Agency (FSA) regulations have made it more difficult for newly established foreign-owned companies to open bank accounts, often requiring a Japan-resident director.
“These challenges make early coordination between tax, legal, labour and banking professionals essential,” Akiyoshi advises. “Planning carefully can significantly reduce risks and ensure smooth market entry.”

Akiyoshi takes great satisfaction in helping foreign companies establish and grow their presence in Japan. “It is deeply rewarding to see clients expand successfully and become part of the Japanese business community,” he says. “I also value collaboration within the Ecovis network, where we combine global expertise and local insight to deliver high-quality, practical solutions for our clients.”

The work of Akiyoshi and his firm reflects Ecovis’s broader mission – to connect international experience with local expertise, helping businesses thrive wherever they operate. Through this commitment, ECOVIS AKIA continues to play an important role in supporting international companies to establish, grow and succeed in Japan.

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