On June 30, 2026, the Government issued Decree 253/2026/ND-CP guiding the Law on Personal Income Tax 2025 (Decree 253). Decree 253 took effect on the same date as the Law on Personal Income Tax 2025, July 01, 2026, and replaced Decree 65/2013/ND-CP (Decree 65). In this Legal Newsletter, NHQuang&Associates shall introduce and analyze several noteworthy new provisions of Decree 253 that may affect individuals and organizations in terms of labor, as follows:
(i) Decree 253 amends and supplements the regulations on taxable income from salaries and wages;
(ii) Decree 253 amends and supplements the regulations on salaries and wages for night work and overtime, and salaries and wages paid for unused leave days;
(iii) Decree 253 adjusts the income threshold serving as the basis for tax withholding applicable to individuals who do not enter into labor contracts or enter into labor contracts of less than three months.