The Law on Personal Income Tax No. 109/2025/QH15 (effective 1 July 2026) — note this is a law of the National Assembly, distinct from the Standing Committee document numbered 109/2025/UBTVQH15 — sets two completely different tax calculations for the two most common types of individual income: salaries and wages versus securities transfers. Confusing the two is a common mistake that leads taxpayers to miscalculate their obligations.
Salary: 5-tier progressive tax schedule
Income from salaries and wages is taxed under a 5-tier progressive schedule at rates of 5%, 10%, 20%, 30% and 35% (Article 9 of PIT Law 109/2025/QH15). Before the schedule applies, individuals deduct a personal allowance of VND 15.5 million per month for themselves and VND 6.2 million per month for each dependent. The higher the income, the larger the portion taxed at the higher brackets — that is the nature of progressive taxation.
Securities transfer: 0.1% of each sale price
By contrast, income from securities transfers is not taxed progressively. Tax equals 0.1% multiplied by the transfer price of each transaction (Article 13(2)) — and crucially, even when sold at a loss. A loss-making seller still pays 0.1% on the sale price, because this is a tax on transfer turnover, not on profit. Profit or loss does not change the tax obligation.
Quick comparison
- Calculation method: salary — 5-tier progressive (5–35%); securities — flat 0.1%;
- Tax base: salary — taxable income after personal/dependent deductions; securities — the transfer price of each transaction;
- Loss/low-income cases: salary — low income means low or zero tax; securities — a loss-making sale still incurs 0.1% on the sale price.
Law 09/2026/QH16 only amends Article 7(1)
A point to avoid confusion when researching: Law 09/2026/QH16 only amends Article 7(1) of PIT Law 109/2025 — the salary tax schedule (Article 9) and the securities transfer tax (Article 13(2)) are untouched. For these two matters, apply Law 109/2025/QH15 directly.
Practical notes for taxpayers
- Salary earners only: track personal and dependent deductions to land in the correct bracket;
- Securities investors: budget 0.1% tax per sale into transaction costs — selling at a loss does not exempt you;
- Both income types: the two calculations apply independently to each type; they are not merged.
Frequently asked questions
Are 109/2025/QH15 and 109/2025/UBTVQH15 the same?
No. This is a research trap: the new PIT law is 109/2025/QH15 of the National Assembly; 109/2025/UBTVQH15 is a different document number issued by the National Assembly Standing Committee.
Must I pay PIT when selling shares at a loss?
Yes — 0.1% of the transfer price of each transaction (Article 13(2)), applicable even at a loss.
Legal bases: Law on Personal Income Tax 109/2025/QH15 (Article 9, Article 13(2)); Law 09/2026/QH16 (amending Article 7(1)).
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The information above is for reference only and does not constitute legal advice. Each specific situation should be assessed separately by a lawyer.
The legal content of this article was reviewed by FLAT’s AI Legal Council and submitted to the owner for approval; this is not the opinion of a human lawyer and does not replace legal advice for specific cases.