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flag Vietnam boosts income tax deductions by 40% for 2026, easing tax burden amid rising living costs.

flag Vietnam’s National Assembly Standing Committee has approved a major increase in personal income tax deductions, effective for the 2026 tax period. flag The monthly taxpayer deduction will rise to 15.5 million VND ($590), and dependent deductions to 6.2 million VND ($240), a 40% increase from current levels. flag The change, based on economic growth and inflation, aims to align tax relief with living costs and is expected to reduce state revenue by about 21 trillion VND annually. flag The adjustment marks the first update since 2020 and will exempt a monthly earner of 17 million VND from paying income tax after deductions. flag The decision follows broader economic trends, including Vietnam’s projected 2025 GDP growth and rising per capita income.

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