[1OFFICE] ANNOUNCEMENT: GUIDE TO UPDATING THE PERSONAL INCOME TAX (PIT) FORMULA FOR THE NEW 5-TIER PROGRESSIVE TAX SCHEDULE, APPLICABLE FROM THE 2026 TAX PERIOD
Kính gửi Quý khách hàng,
1Office would like to sincerely thank you for your trust and partnership over the past time. With the desire to always provide the best user experience, 1Office proactively monitors and promptly updates the latest regulations/policies.
According to the regulation in Clause 2, Article 9 of the Law on Personal Income Tax (amended) regarding the reduction of the progressive tax schedule from 7 tiers to 5 tiers, effective from July 1, 2026. However, since the 2026 PIT Schedule (also known as the progressive tax schedule) is one of the bases for calculating income tax from business, wages, and salaries for resident individuals, the 5-tier progressive schedule will be applied from the 2026 tax period, meaning from January 1, 2026.
For your convenience, 1Office would like to provide the following details:
Mục lục
1. Simplifying the progressive tax schedule from 7 tiers to 5 tiers
Under the old regulation (Applied before January 1, 2026): The 7-tier progressive personal income tax schedule according to Appendix I issued with Circular 111/2013/TT-BTC is as follows:
Image: 7-tier progressive personal income tax schedule
Under the new regulation (Applied from January 1, 2026 onwards): The new 5-tier progressive tax schedule stipulated in Clause 2, Article 9 of the amended Law on Personal Income Tax 2025 is as follows:
Image: 5-tier progressive personal income tax schedule
2. New update on the 1Office system (For customers using the system’s PIT calculation function)
To ensure accurate PIT calculation according to current regulations, 1Office has proactively updated the PIT calculation function formula (SA_PIT) to the new 5-tier schedule, based on the Payday field.
Accordingly, for payrolls with a payday from January 1, 2026 onwards, the system will automatically apply the new 5-tier progressive tax schedule.
Customers can refer to how to update the Payday field and cases where it is not necessary to update the Payday field in sections 2.4 and 2.5 of this announcement: Announcement on updating the family circumstance deduction calculation according to the new resolution.
3. Instructions for customers not using the system’s PIT calculation function
For payrolls not using the system’s PIT calculation formula (SA_PIT function) and are using manual formulas with fixed numerical values (e.g., =IF(ASSESSABLE_INCOME <= 5,000,000, 5, IF(ASSESSABLE_INCOME <= 10,000,000….))), you need to edit the formula in the payroll template (payroll type) according to the 5-tier progressive schedule to ensure correct application of the new policy from January 1, 2026.
For detailed instructions on how to edit the formula, please refer Here.
If your business has specific tax calculation methods, please contact our support channels via Ticket or Hotline 1900 3313 for detailed consultation.
We hope that this update in line with the new policy will help you apply the regulations correctly and enhance efficiency when using the software. For any questions during use, please contact us through the following channels:
- Hotline: 1900 3313
- Email: support@1office.vn
- Chatbot: 1Assistant
- Ticket
We sincerely thank you for your continued trust and partnership with 1Office.
Sincerely,
The 1Office Product Development Department.
