Vietnam PIT Reform for Foreign Employees in 2026, What Benefits Expats Can Actually Feel?

  If you are a foreign expat in Vietnam with work permit, temporary residence card (TRC), employer sponsorship, you might be interested to learn about the new law on personal income tax (PIT) that impact your payslip.  You would also concern when this new law will become effective and whether you would take home less or more money, or you just want to make sure labour compliance is strictly followed by the company.

In here we continue the theme from our earlier post on the proposal on PIT changes, what was coming is now law, and the real question becomes how the Vietnam PIT reform for foreign employees shows up on a payslip, in payroll withholding, and at year end finalization, especially for higher income foreign professionals.

What the Vietnam PIT Reform for Foreign Employees Actually Changed

1. The amended PIT Law was passed on Dec 10th, 2025 and the main effective date is Jul 1st, 2026

Vietnam passed the amended Personal Income Tax law on Dec 10th, 2025, with effect from Jul 1st, 2026. 

2. Some salary or wage provisions apply from the 2026 tax period

The tax authority notes that certain provisions related to wages or salaries for tax resident individuals apply from the 2026 tax period.

3. Family deductions increase from Jan 1st, 2026

Resolution 110/2025/UBTVQH15 raises deductions to:

• VND 15.5m/month for the taxpayer
• VND 6.2m/month per dependent

Effective and applied from the 2026 tax period. 

4. The progressive schedule becomes simpler, and the 35% threshold shifts higher

From Jul 1st, the progressive PIT schedule moves from 7 brackets to 5, and the top 35% rate applies above VND 100m/month (instead of above VND 80m/month under current rules). 

A table illustrating Vietnam’s progressive personal income tax rates by income level

Why the Vietnam PIT Reform Matters More to High Incomers

High income expats feel the Vietnam PIT reform more because:

•       When income is high, even small payroll settings i.e. deductions, thresholds, benefit treatment can change withholding by millions per month.
•       High income packages usually include bonuses and benefits, which are exactly where classification mistakes happen.
•       The reform has split timing which parts apply from 2026 while a broader effective date arrives later, which increases the chance of payroll applying the wrong rule for months.
•       At high income, any mismatch becomes a cashflow issue now and a finalization headache later.

What the Vietnam PIT Reform Means in Real Life

Benefit 1: Higher deductions reduce taxable income every month

From the 2026 tax period, the family deduction rises to 15.5m/month for the taxpayer and 6.2m/month per dependent. 

For high income expats, deductions matter because they reduce taxable income at the top end of the progressive system, where your marginal rate is highest. This is the most visible part of the Vietnam PIT reform.

Benefit 2: Less of your income is taxed at the top rate (35% starts later)

The top PIT rate remains 35%, but the top band threshold shifts to above VND 100m/month (instead of above 80m/month). 

Even if you are well into the top band, the Vietnam PIT reform for foreign employees still helps because a slice of income that previously entered the 35% layer earlier is now taxed at the layer below first.

Benefit 3: Fewer brackets simplify

A 5 bracket structure is easier to implement consistently than a 7 bracket structure, especially for multinational payroll operations handling allowances, bonus cycles, and split month employment changes. 

This is an underrated advantage of the Vietnam PIT reform for foreign employees, which is stability.

Benefit 4: Dependents become a meaningful lever for long term expats

If you have settled in Vietnam with spouse, children, the dependent deduction increase can be material, but only if you register properly and on time. 

In practice, for many high income expats, the Vietnam PIT reform becomes real only when dependent files are appropriate.

What the Vietnam PIT Reform Means in Real Life

What Can Go Wrong for Expats

Here are the top high income expat risks under the Vietnam PIT reform for foreign employees:

Risk 1: timeline confusion leads to wrong withholding

• Main effective date: Jul 1st, 2026 
• Certain wage/salary rules for residents: applied from 2026 tax period 
• Deduction increase: Jul 1st, 2026 (2026 tax period) 

If payroll updates late, you might overpay for months and only recover or reconcile later. For high earners, that is not just a tax issue, it is a cashflow and trust issue. 

Risk 2: resident vs non-resident assumptions are left unverified

High income expats travel a lot. Resident or non-resident status changes the tax approach dramatically. The Vietnam PIT reform for foreign employees does not remove this risk, if anything, it makes it smarter to confirm your status rather than assume.

Risk 3: gross packages contain quiet taxable items

Senior expat packages often include housing support, education support, relocation benefits, flights, per diem structures, and one off awards. When these are not consistently classified and documented, year end finalization becomes painful, leading to lost trust and leading to potential labour disputes in Vietnam.

Risk 4: dependent deductions are missed in practice

The deduction amount is clear but the execution is not always. If dependent documentation is incomplete or delayed, the Vietnam PIT reform for foreign employees may not translate into reduced withholding during the year. 

Risk 5: not sufficient information

Payroll can apply rules, but payroll cannot guess:

• your travel days,
• your family status documentation,
• the tax classification of certain payments unless HR structures them correctly.

The information has to be updated accordingly, and document support is required to ensure the correct information is used.

Step by Step on Allowance and Benefits Stress Test

Step 1:  Inventory every benefit

Start with a simple list. If it shows up in your offer letter, HR policy, or payslip, even vaguely,  capture it.

Common expat benefits to list:

• Housing: rent, service apartment, utilities, agent fees
• Schooling: tuition, enrollment fees, school transport
• Travel: home leave, relocation flights, baggage, temporary accommodation
• Meals and transport: meal allowance, taxi, car allowance, driver
• Insurance: international health, life, accident
• Devices and work tools: laptop, phone, internet
• One-off items: sign-on bonus, settling-in allowance, relocation package

Step 2: What evidence you must keep

For each benefit, verify:

• Is it cash paid as allowance or in-kind which company pays directly?
• Does it need specific conditions to qualify for a favorable treatment?
• What are the minimum documents needed to defend the treatment?

Evidence checklist example:

• Written policy: company benefit policy, assignment letter, HR handbook excerpt
• Labour contract and appendix mentioning benefit terms.  If needing to review labour contract, do it now.
• Invoices and receipts with names, dates, service period
• Payment proof: bank transfer, reimbursement record

Step 3:  Fix weak documentation

Treat this like a compliance check, to correct or fix the following typical weak spots:

• Receipts without names or service period
• Payments made in cash with no trace
• Allowance paid as a lump sum with no policy basis
• School/housing paid by the employee but claimed informally
• Mixed personal vs business expenses

Fix actions:

• Ask HR for a benefits policy
• Convert informal benefits into formal payroll line items with descriptions
• Standardize invoices with named recipient, period, address for housing if relevant
• Create a simple benefit claim form for reimbursements

Step 4:  Decide the payroll reporting method

Benefits should be handled consistently, month to month.

Pick the method that fits your company’s system:

• Payroll included method: benefits appear clearly on payslip.  This is best for transparency
• Reimbursement method: strict claim and  documentation workflow
• Direct-payment method: company pays vendors and keep contracts, invoices centrally

Step 5:  Prepare for audits

Think of this explanation that HR, Finance, and the employee can all repeat without contradicting each other, including:

• Why the benefit exists: assignment support, employment package
• Who is eligible and under what conditions
• How it’s paid and documented
• Where it appears in payroll records
• Where evidence is stored and who owns it

FAQs: the Vietnam PIT Reform for Foreign Employees

1: Does the Vietnam PIT reform apply to foreigners or only Vietnamese citizens?

PIT rules apply based on taxpayer status and income conditions, not nationality. This is why the Vietnam PIT reform for foreign employees matters for expats.

2: When do I feel the change, January 2026 or July 2026?

Both can be true:

• Deduction increases apply from Jul 1st, 2026 for the 2026 tax period. 
• The amended PIT Law is effective from Jul 1st,2026, and some wage/salary provisions are applied from the 2026 tax period. 

This split timing is the reason the Vietnam PIT reform for foreign employees causes confusion in office chats.

3: What are the new deduction levels?

• Taxpayer: VND 15.5m/month
• Dependent: VND 6.2m/month

From the 2026 tax period. 

4. Does the top rate change under the Vietnam PIT reform?

The top rate remains 35%, but the threshold shifts to above VND 100m/month under the new schedule. 

5. I’m a high earner. Do deductions still matter?

Yes. High earners often benefit more from deductions because they reduce taxable income at higher marginal rates. Under the Vietnam PIT reform for foreign employees, higher deductions are one of the most practical benefits.

6. What’s the most common mistake for expats?

Assuming payroll can apply benefits and deductions without correct personal facts and documentation. Under the Vietnam PIT reform, documentation is the bridge.

7. Why do dependents matter so much in expat conversations?

Because the deduction is monthly and recurring, but the paperwork can be cross border and time consuming.

8. Can I wait to year end to reconcile?

Year end finalization may correct totals, but high income expats usually care about predictable monthly net pay and avoiding surprises. With deduction changes effective from Jul 1st,2026 for the 2026 tax period, it is reasonable to ask how monthly withholding reflects the Vietnam PIT reform for foreign employees. 

9. What about the 5 brackets instead of 7 change?

It is designed to simplify and widen bracket ranges, reducing friction and implementation complexity. It becomes effective from Jul 1st, 2026 in summaries of the amended law. 

Conclusion

If you are a long term foreign expat, the Vietnam PIT reform for foreign employees is not just about paying a bit less or a bit more. To prepare for 2026 tax finalization, for high income professionals, the best outcome for applying the PIT reform right is simple, which are predictable tax, documented facts, and no surprises.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/vietnam-pit-reform-for-foreign-employees.html

India Imposes 5 Years Anti-Dumping Duties on Hot-Rolled Steel From Vietnam

  

Introduction

India has announced the imposition of anti-dumping duties for a period of five years on certain hot-rolled steel products originating in or exported from Vietnam.

On November 13th, 2025, the Ministry of Finance of India confirmed that the measure aims to protect domestic steel producers from injury caused by unfairly priced imports.

India Imposes 5 Years Anti-Dumping Duties on Hot-Rolled Steel From Vietnam

The decision follows a detailed investigation conducted by India’s Directorate General of Trade Remedies (DGTR), which concluded that Vietnamese origin steel was being dumped into the Indian market at prices that harmed the local industry.

Final Findings by DGTR Trigger the Measure

The duty announcement is based on DGTR’s final findings issued on August 13th, 2025.

DGTR determined that imports of alloy and non-alloy hot-rolled steel plates from Vietnam were being sold in India at low prices, significantly undercutting domestic producers.

This conclusion provided the legal basis for the Ministry of Finance to impose definitive anti-dumping duties for a five-year period.

Duty Rates and Scope of Application

Under the final decision:

• Hoa Phat Dung Quat Steel Joint Stock Company is the only Vietnamese manufacturer exempted from the anti-dumping duty.
• All other Vietnamese producers and exporters will face a fixed anti-dumping duty of USD 121.55 per metric ton on covered products.

According to Reuters, the same duty rate also applies to goods shipped from Vietnam but manufactured in third countries, targeting transshipment practices used to bypass the measure.

Duration and Legal Effect

The anti-dumping duty will remain in force for five years from the date of publication, unless earlier revoked, amended, or replaced following a review or policy decision.

The payable duty will be collected in Indian rupees, calculated according to the exchange rate applicable on the date the import invoice is presented.

Implications for Vietnamese Exporters and Indian Importers

The decision poses several business implications:

• Most Vietnamese exporters will face significantly higher costs when supplying hot-rolled steel to India.
• Indian importers may experience increased procurement costs and supply chain adjustments.
• Re-exporters or third-country processors routing goods through Vietnam may also be subjected to the duty, depending on origin verification.

This measure highlights India’s growing vigilance against both dumping and potential circumvention patterns in the steel sector.

Trade Compliance Message

India’s imposition of a fixed anti-dumping duty underscores its commitment to shielding domestic industries from price caused by imported steel.

The exemption for only one Vietnamese producer reflects DGTR’s detailed assessment of cooperation levels and pricing practices.

As India continues to intensify its scrutiny of steel imports, exporters operating in Vietnam will need to maintain pricing transparency, and compliance to avoid future liabilities.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/india-imposes-5-years-anti-dumping-duties-on-hot-rolled-steel-from-vietnam.html

5 Key Insights into the Vietnam Intellectual Property Law Amendments: What Businesses Must Prepare For

  

Introduction

Vietnam Intellectual Property Law amendments have long been expected.

Why?

For sometime, we have seen clients’ feedback on the delay of the procedures i.e. registration of IP rights, refusal to possible IP violations. Many times, we come across clients feeling hopeless seeking solutions to enforcement of violations of IP rights.

Now, it seems Vietnam is moving into a critical reform period, and one of the most consequential developments is the upcoming Vietnam Intellectual Property Law amendments. This revision cycle is broader than the amendments of 2009, 2019, and 2022. It reflects Vietnam’s economic transformation and the State’s intention to strengthen innovation capacity, align with international commitments, and respond to rapid changes in the digital economy.

The process is already in motion. On October 27th, 2025, the Government formally submitted the Draft Law amending and supplementing a number of articles of the Intellectual Property Law to the National Assembly. The National Assembly then held a plenary debate on November 24th, 2025, focusing on valuation of intellectual property, digital content protection, enforcement mechanisms, and compliance with FTAs such as CPTPP, EVFTA, and RCEP.

Based on legislative procedure timelines and the level of consensus expressed at the November debate, the amendments are realistically positioned for adoption in late 2026, with expected effect from 2027 once implementing decrees and circulars are issued.

In here, we discuss the overview grounded in official records, legal logic, and policy direction for businesses planning ahead.

5 Key Insights into the Vietnam Intellectual Property Law Amendments

IP Must Shift from Protection to Asset Value

Vietnam’s Ministry of Science and Technology (MOST) made it clear in the dossier submitted with the draft that IP must evolve from a passive certificate into an active economic asset.

This aligns with the Government’s strategic orientation to develop a market for science and technology, where the Vietnam Intellectual Property Law amendments will have a key role.

• IP can be valued,
• used as collateral,
• contributed as capital, and
• commercialised across industries.

The draft law calls for:

• Legal recognition of IP valuation,
• A national IP transaction and valuation database,
• More transparent licensing and transfer mechanisms,
• Clear principles for using IP as security in financial transactions.

This is a direct response to the challenges raised by innovators, investors, and enterprises who face difficulties converting IP assets into financial value under the existing framework.

The Digital Economy Requires Modern, Technology-Aligned IP Rules

During November 24th, 2025 National Assembly debate, delegates raised practical concerns regarding digital content, online distribution, and AI-generated materials. Multiple lawmakers noted that the existing law does not adequately address:

• Redistribution of news content on digital platforms
• Platform liability for hosting copyrighted content
• Automated reproduction through algorithms
• AI-generated content that may infringe rights
• Cross-border streaming and digital licensing models

The draft introduces provisions that strengthen digital copyright enforcement and clarify obligations for platforms, intermediaries, and organisations deploying AI-driven content systems.

These changes aim to protect creators, media agencies, and technology companies in a rapidly evolving digital environment.

Enforcement Must Be More Predictable and Harmonised

Reports submitted to the National Assembly’s Committee for Legal Affairs and Committee for Science, Technology and Environment highlighted inconsistencies across administrative, civil, and criminal enforcement channels.

Key issues included:

• Overlapping sanctions
• Limited deterrence for large-scale infringement
• Lack of coordination between market authorities, police, and courts
• Insufficient tools for border enforcement

The amendments seek to:

• Clarify enforcement pathways
• Harmonise administrative and civil remedies
• Strengthen border measures
• Enhance coordination between enforcement agencies

These reforms respond directly to long-standing concerns raised by domestic enterprises and foreign investors about the predictability of IP enforcement in Vietnam.

Vietnam Must Align with Its International Commitments

Vietnam’s participation in FTAs such as CPTPP, EVFTA, and RCEP obligates the country to elevate its IP regime to international standards.

The Government’s explanatory report accompanying the draft law highlighted several areas requiring alignment:

• Border control against infringing imports
• Digital-era copyright protections
• Limitation of liability for online intermediaries
• Fair and transparent licensing practices
• Protection of confidential information and trade secrets

Strengthening these rules helps Vietnam meet treaty obligations while enhancing investor confidence and supporting cross-border licensing, franchising, OEM/ODM manufacturing, and technology transfer.

Registration, Procedures, and Compliance Will Become Simpler and Clearer

Feedback from consultations conducted by the Government in mid-2025 consistently emphasised the need for procedural reforms.

Key areas of simplification proposed in the draft include:

• Shorter IP registration timelines
• More transparent opposition and invalidation procedures
• Easier renewal and recordal processes
• Greater accessibility for SMEs and foreign investors

These improvements are expected to reduce compliance burdens and support enterprises seeking faster and more reliable IP protection.

Step-by-Step Guide for Businesses Preparing for the Vietnam Intellectual Property Law Amendments

A structured preparation plan allows businesses to align internal systems early and minimise risk when the Vietnam Intellectual Property Law amendments come into force.

Step 1: Conduct an internal IP audit

Identify registered and unregistered assets: trademarks, software, databases, confidential information, and creative works.

Step 2: Assess which assets can be monetised or valued

Prioritise assets with licensing potential, market reach, or financial relevance.

Step 3: Strengthen internal IP governance

Clarify employee IP ownership, contractor obligations, and digital content review processes.

Step 4: Update all IP-related contracts

Adjust licensing, outsourcing, manufacturing, franchising, technology transfer, and platform agreements to reflect new obligations.

Step 5: Implement digital and AI compliance mechanisms

Ensure safe use of copyrighted content, establish AI content screening, and protect data and trade secrets.

Step 6: Track the legislative process through 2026

Monitor draft revisions, NA discussions, implementing regulations, and official guidance.

Conclusion

The Vietnam Intellectual Property Law amendments reflect a deliberate shift in Vietnam’s economic strategy: building an innovation-driven, digitally resilient, internationally aligned IP regime. With the draft already submitted to the National Assembly on October 27th, 2025, debated publicly on November 24th, 2025, and positioned for adoption in late 2026, businesses have a clear timeframe to prepare.

For enterprises, this reform is not merely a legal adjustment. It is an opportunity to strengthen valuation, commercialisation, compliance, and digital governance frameworks, ultimately turning intellectual property into a meaningful and strategic asset.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/ip/vietnam-intellectual-property-law-amendments.html

6 Key Updates on Eurasian Economic Union Anti-Dumping Investigation on Tires from Vietnam

  The Eurasian Economic Union (EAEU) has officially announced the initiation of an anti-dumping investigation concerning truck tires originating from Thailand and Vietnam. The decision follows a determination by the Domestic Market Protection Department of the EAEU Economic Commission that the sharp increase in tire imports could cause significant harm to the Union’s domestic manufacturing industry.

Eurasian Economic Union Anti-Dumping Investigation on Tires from Vietnam

EAEU Launches Investigation After Sharp Import Growth

The investigation was initiated on November 7th, 2025, based on complaints filed by domestic companies including Belshina, Omskshina, Cordiant, and Nizhnekamsk. According to the case file, the tires under investigation are truck tires used on various vehicles with multiple axles, including freight cars, buses, electric vehicles, dump trucks, trailers, and semi-trailers. These are rubber tires and tubes with rim diameters ranging from 17.5 to 24.5 inches, classified under HS codes 4011.20.100.0 and 4011.20.900.0.

According to the EAEU investigation notice, between 2022 and 2024, the import volume from Thailand and Vietnam into the EAEU increased by 2.6 times, and the market share of this product group in domestic consumption rose 2.4 times, creating significant pressure on domestic production.

Allegations of Dumping and Harm to EAEU Industry

The EAEU investigation authority alleges that imports from the two countries were sold at prices lower than the average prices of EAEU – produced goods (except in 2023). Production, economic, and financial indicators of the domestic EAEU industry declined during both the 2022 – 2024 period and April 2024 – March 2025 period, specifically:

• Production decreased by 6% and 14%
• Capacity utilization decreased by 5% and 6%
• Inventory increased by 15% and 19%
• Sales profit decreased by 59% and 78%
• Manufacturing profit margins decreased by 68% and 80%
• Profit margins on sales within the Union decreased by 62% and 76%

The notice also points out that truck tires from Thailand and Vietnam are primarily produced for export. The total production capacity of these two countries far exceeds the consumption demand of the EAEU market. Furthermore, Vietnamese tire manufacturers plan to launch new production lines with a capacity of around 1.4 million units, significantly expanding export potential.

The notice further mentions that recent investigations and trade defense measures by the United States, Brazil, South Africa, and Egypt, as well as the U.S. Section 232 investigation under the Trade Expansion Act of 1962 on imported tires (including products from Thailand and Vietnam), may redirect export flows toward the Eurasian market.

The provisional dumping margins alleged by the EAEU are:

• 24.17% for Thailand
• 19.59% for Vietnam

Investigation Procedure and Obligations of Stakeholders

The investigation follows Article 49 of the EAEU Treaty and Protocol Appendix 8 on the application of trade defense measures. Key timelines include:

• Registration of interested parties: within 25 days from the initiation date
• Requests for public hearings: within 45 days from the initiation date
• Submission of comments and information: within 60 days from the initiation date
• Sampling procedure: applied when the number of companies is large; companies must provide production and export data for the period July 1st, 2024 – June 30th, 2025

Companies must submit both confidential and non-confidential versions in Russian, following EAEU templates.

Consequences of Non-Cooperation

Under the Protocol, companies that:

• Fail to submit information
• Submit it late
• Or provide inaccurate data

may be subject to the “adverse facts available” (AFA) mechanism, resulting in the highest possible anti-dumping duty applied to non-cooperating entities.

Impact on Vietnamese Exporters

The investigation could lead to significant anti-dumping duties if Vietnamese companies do not fully cooperate, which would:

• Increase export costs to the EAEU market
• Affect the supply chains of regional importers
• Risk the highest possible duties if deemed to have provided unreliable data

Recommended Response from Authorities

1. For industry associations:

• The Trade Defense Department recommends quickly informing relevant companies about the alleged products so they can respond and manage the case, while urging companies to participate to avoid being considered non-cooperative.
• Maintain direct communication with the The Trade Remedies Authority of Vietnam (TRAV) for timely support.
• Identify the largest exporting companies during the investigation period (July 1st, 2024 – June 30th, 2025) to anticipate which companies may be selected as mandatory respondents.

2. For involved manufacturing and exporting companies:

Follow the procedural steps:

• Register as an interested party according to instructions.
• Provide full information for the sampling procedure within 25 days from the investigation start date, by December 2nd, 2025, at the latest. Failure to respond on time will be treated as non-cooperation and result in a high adverse duty rate.
• Fully respond to the investigation questionnaire if selected as a mandatory respondent, following instructions.
• Submit requests for public hearings within 45 days of the initiation date.
• Submit comments on the case (if any) within 60 days of the initiation date.

Closely monitor the investigation developments and proactively study and understand EAEU anti-dumping regulations, procedures, and requirements.

Fully cooperate with the Russian Federal Investigation Authority throughout the process. Any lack or partial cooperation may lead the EAEU authority to apply the highest anti-dumping duties based on available information.

Regularly communicate with the The Trade Remedies Authority of Vietnam (TRAV) to receive timely support.

About ANT Lawyers, a Law Firm in Vietnam

We help clients overcome cultural barriers and achieve their strategic and financial outcomes, while ensuring the best interest rate protection, risk mitigation and regulatory compliance. ANT lawyers has lawyers in Ho Chi Minh city, Hanoi, and Danang, and will help customers in doing business in Vietnam.

Source: https://antlawyers.vn/update/eaeu-anti-dumping-investigation-on-tires-from-vietnam.html