According to the official dispatch, salaries and wages paid by the Company to employees for night work in accordance with Article 106 of the Labor Code (where night working hours are defined as the period from 10:00 p.m. to 6:00 a.m. of the following day) are considered income exempt from personal income tax under Article 4 of the Law on Personal Income Tax dated December 10, 2025.
Salary and wage payments made by the Company for night shifts outside the above-mentioned time frame, and which do not qualify as overtime pay in accordance with applicable labor regulations, are not regarded as tax-exempt income under Article 4 of the Law on Personal Income Tax dated December 10, 2025.
The determination of night working hours and overtime hours should be carried out by the Company in accordance with relevant legal provisions.
As of now, the Law on Personal Income Tax No. 109/2025/QH15 has not yet been supplemented by implementing Decrees or guiding documents. Once such Decrees and guidance are issued by the Government, the Tax Authority will promptly disseminate and provide guidance to ensure that the Company and taxpayers in the area are informed and able to comply with the regulations.
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