Links Labour Law Insider – Latest Tax, Payroll & Labour Law Updates
Welcome to Links’ Labour Law Insider, our quarterly publication. Our Q1 edition provides a detailed overview of key updates in taxation, labour law, payroll, and visa regulations, offering a clear and comprehensive summary of recent legislative changes to be aware of in Asia Pacific and the Middle East.
For further insights into market developments, we invite you to subscribe to our blog to stay informed on the latest HR news, or contact our team to learn more about how these changes may affect your business.
- Australia
- Australia to Introduce Payday Super from July 2026
- NSW Extends Anti-Bullying and Sexual Harassment Jurisdiction to State Employees
- Hong Kong
- Hong Kong and Rwanda Sign New Double Tax Avoidance Agreement
- Hong Kong Signs New Double Taxation Agreement with Norway
- Hong Kong Further Extends Code “M” Profits Tax Filing Deadline
- Hong Kong Revises Interest Rates on Tax Reserve Certificates
- India
- India Introduces EPFO Employees’ Enrolment Scheme
- India Increases Dearness Allowance for Central Government Employees
- Government Announces Implementation of Four Labour Codes to Simplify and Streamline Labour Laws
- Code on Social Security, 2020
- India’s Latest ‘The Industrial Relations Code, 2020’
- India’s New Occupational Safety, Health, and Working Conditions Code (OSH Code)
- The Introduction of the Pradhan Mantri Viksit Bharat Rojgar Yojana (PMVBRY) Scheme
- Indonesia
- Indonesia Increases Minimum Wage in 36 Provinces
- Macau
- Macau Increases Minimum Wage
- Mainland China
- China Issues New Work Injury Insurance Guide
- Malaysia
- Malaysia Raises E-Invoicing Exemption Threshold to RM1 Million
- New Zealand
- New Zealand Announces Minimum Wage Increase
- Philippines
- Philippines Increases Minimum Wages in Cagayan Valley
- Singapore
- Singapore Raises CPF Basic Healthcare Sum
- Singapore Updates Transfer Pricing Guidelines
- South Korea
- South Korea Raises the Upper Limit Salary for Shorter Working Hours During Childcare
- Taiwan
- LPA Contribution Requirement for Foreign Professionals
- Minimum Wage Update in Taiwan
- Amount of Insurance Salary Update
- Updates to Regulations Governing the Withholding of Tax on Wages
- Leave Units Updates from 1 January 2026
- Changes to the Amount of Basic Income Exemption/Deduction in Taiwan
- United Arab Emirates
- UAE Updates Wage Protection System (WPS)
- Minimum Wage Update for Emiratis
- Vietnam
- Vietnam Updates Regional Minimum Wage Effective 2026
- New Law on Tax Administration (Law No.: 108/2025/QH15)
- Amended Law on Personal Income Tax (Law No.: 109/2025/QH15)
- New Law on Employment (Law No. 74/2025/QH15)
- Law on Personal Data Protection (Decree No. 356/2025/ND-CP)
If you have any questions regarding the content please contact Bella Khan at bella.khan@linksinternational.com or Lynette Liew at lynette.liew@linksinternational.com.
AUSTRALIA
Australia to Introduce Payday Super from July 2026
Australia will introduce Payday Super from 1 July 2026 under the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025. The reform requires employers to pay superannuation contributions at the same time as wages, instead of quarterly.
Under the new rules, super contributions must reach an employee’s super fund within seven business days of each payday.
NSW Extends Anti-Bullying and Sexual Harassment Jurisdiction to State Employees
New South Wales has commenced expanded anti-bullying and sexual harassment protections for state government employees under Chapter 3A of the Industrial Relations Act 1996 (NSW). The changes took effect on 13 October 2025.
From the effective date, eligible NSW government employees may apply to the Industrial Relations Commission (IRC) for orders to stop workplace bullying or sexual harassment. The IRC may also award damages of up to AUD 100,000 and order remedies such as public apologies or corrective action by employers.
Penalties apply for non-compliance with IRC orders. Employers may face fines of up to AUD 93,900, while individuals may be fined up to AUD 18,870. Employers should review workplace policies, complaint handling procedures and training programmes to ensure alignment with the expanded jurisdiction.
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HONG KONG
Hong Kong and Rwanda Sign New Double Tax Avoidance Agreement
Hong Kong and Rwanda have signed a comprehensive double tax avoidance agreement on 9 October 2025. The agreement will enter into force once both jurisdictions complete their respective domestic ratification procedures, with effective dates to be determined thereafter.
Under the agreement, withholding tax rates at source will be capped at 7.5% for dividends, 8% for interest income, 9% for royalties and 10% for technical services fees. Double taxation will be relieved through the credit method.
Hong Kong Signs New Double Taxation Agreement with Norway
Hong Kong and Norway signed a comprehensive double taxation agreement on 16 December 2025, aimed at avoiding double taxation and enhancing tax certainty for cross-border business and investment between the two jurisdictions.
The agreement clarifies the allocation of taxing rights and allows tax paid in Norway by Hong Kong residents to be credited against Hong Kong tax on the same income, subject to Hong Kong’s Inland Revenue Ordinance. It also reduces Norway’s withholding tax on dividends paid to Hong Kong residents from up to 25% to either 5% or 15%, depending on the level of shareholding.
Hong Kong Further Extends Code “M” Profits Tax Filing Deadline
The Hong Kong Inland Revenue Department has announced a further extension of the filing deadline for Code “M” Profits Tax returns to 15 December 2025 under the block extension scheme for the 2024/25 year of assessment.
The extension applies to tax representatives handling Profits Tax returns for businesses with accounting dates falling between 1 January 2025 and 31 March 2025. The measure provides additional time for the preparation and lodgement of affected returns under the block extension arrangement.
The IRD confirmed that the deadline for electronic filing remains unchanged at 2 January 2026.
Hong Kong Revises Interest Rates on Tax Reserve Certificates
The Inland Revenue Department has announced a revision to the annual rate of interest payable on Tax Reserve Certificates, effective from 6 October 2025.
Under the revised arrangement, the annual interest rate will be reduced from 0.3417% to 0.2583%, equivalent to HKD0.0215 per month for every HKD100. Interest on Tax Reserve Certificates is calculated on a simple interest basis and accrued monthly from the date of purchase until the certificates are applied to settle tax liabilities.
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INDIA
India Introduces EPFO Employees’ Enrolment Scheme
India has introduced the Employees’ Enrolment Scheme – 2025 under the Employees’ Provident Fund Organisation (EPFO). The scheme takes effect from 1 November 2025 and will remain open until 30 April 2026.
The scheme provides a one-time window for employers to voluntarily enrol employees who were not covered under the Employees’ Provident Fund (EPF) between 1 July 2017 and 31 October 2025. Employers may declare eligible employees through the EPFO portal to regularise past non-compliance. For the undeclared period, the employee’s contribution is waived, while employers are required to pay only the employer’s share, applicable interest under section 7Q, administrative charges, and a fixed penalty of INR 100 per establishment.
Establishments subject to inquiries under section 7A of the EPF Act, paragraph 26B of the EPF Scheme, or paragraph 8 of the Employees’ Pension Scheme 1995 are also eligible to participate, with damages capped at INR 100. Employers should review historical EPF coverage, assess eligibility, and ensure submissions are completed within the prescribed window.
India Increases Dearness Allowance for Central Government Employees
India has approved a 3% increase in the dearness allowance (DA) for central government employees and the corresponding dearness relief for pensioners.
Following the revision, the DA rate has increased from 55% to 58% of basic pay and pension. The increase applies retrospectively from 1 July 2025.
Arrears for the months of July, August and September 2025 will be paid together with October 2025 salary and pension disbursements. Relevant government departments and payroll administrators should ensure updated calculations are applied in accordance with the revised rate.
Government Announces Implementation of Four Labour Codes to Simplify and Streamline Labour Laws
The Code brings together four wage and payment-related labour laws and standardises the definitions of wages, employees and minimum wages. These provisions now apply to all employees, regardless of industry, sector, wage level, or gender. A National Floor Wage has also been introduced as the minimum benchmark that all states must follow.
Wages include basic pay, dearness allowance, and retaining allowance, and form the basis for calculating benefits and social security contributions. Total deductions cannot exceed 50% of an employee’s pay. Overtime must be paid at at least twice the normal wage. Working hours are capped at 48 hours per week, with daily working hours generally ranging from 8 to 12 hours. Where employees work fewer than six days a week or where flexible working arrangements apply, total working hours must still not exceed 12 hours per day, including rest intervals.
Clear deadlines have been set for wage payments:
- Daily wages: by the end of the shift
- Weekly wages: before the weekly holiday
- Fortnightly wages: within 2 days of the end of the fortnight
- Monthly wages: within 7 days of the following month
- On resignation or termination: within 2 days
Employers must issue wage slips – either in electronic or physical form – on or before the payment of wages. These slips must clearly show employment details, wages, allowances, deductions, and net pay, ensuring proper documentation and transparency for employees.
Code on Social Security, 2020
The Code consolidates nine existing social security laws and extends coverage to both the organised and unorganised sectors. It also provides legal definitions for gig and platform workers for the first time, along with provisions for national registration and the creation of a social security fund for unorganised and gig workers.
Social security schemes may be funded fully or partly by the central and state governments, as well as through corporate social responsibility (CSR) contributions. Aggregators engaging gig workers are required to contribute 1–2% of their annual turnover towards social security, subject to a cap of 5% of the total amount payable to gig workers.
Fixed-term employees engaged on shorter contracts will be treated on par with permanent employees. They will be eligible for gratuity after one year of continuous service, compared to the previous requirement of five years applicable only to permanent employees.
Coverage under the Employees’ Provident Fund Organisation (EPFO) will apply to all establishments with 20 or more employees, regardless of industry. Employees’ State Insurance Corporation (ESIC) coverage will be extended nationwide, replacing the current system limited to notified areas. ESIC coverage will also be mandatory where even one worker is engaged in a hazardous occupation, instead of the existing threshold of ten employees.
The definition of “family” for female employees may be expanded to include parents-in-law, subject to an income cap. The Code also introduces inspector-cum-facilitators, with governments to notify inspection schemes that may include web-based inspections and electronic requests for information.
India’s Latest ‘The Industrial Relations Code, 2020’
The Code merges three industrial laws and provides a broad definition of a worker. It covers any person (excluding apprentices) employed for hire or reward to perform manual, skilled, unskilled, technical, operational, clerical, or supervisory work. This definition also includes sales promotion employees, working journalists, and supervisory staff earning less than ₹18,000 per month.
The Code introduces fixed-term employment, allowing employers to hire workers for shorter periods based on business or seasonal needs. While this provides greater flexibility for employers, trade unions have raised concerns about job security.
The threshold for seeking prior government approval for layoffs, retrenchment, and closure in factories, mines, and plantations has been increased from 100 to 300 workers.
Strike notice requirements have been extended beyond public utility services to all industrial establishments. Workers must now give notice within 60 days before a strike, and strikes cannot take place within 14 days of giving notice. Previously, these requirements applied only to public utility services.
The definition of a strike now includes mass casual leave, where more than 50% of workers take casual leave on the same day. The government has stated that this change aims to discourage sudden or “flash” strikes, while trade unions believe it restricts workers’ right to strike.
India’s New Occupational Safety, Health, and Working Conditions Code (OSH Code)
The Code consolidates 13 central labour laws and aims to simplify compliance through single registration, common licences and electronic filings. The threshold for requiring a factory licence has been raised from 10 to 20 workers for manufacturing units using power, and from 20 to 40 workers for units operating without power.
Contract labour provisions will now apply to contractors employing 50 or more workers, up from the earlier threshold of 20. The Code also clearly defines core and non-core activities (such as sanitation and catering) and allows employers to engage contract labour in core activities, subject to prescribed conditions.
Women may work night shifts, before 6:00 am and after 7:00 pm, with their consent and appropriate safety measures in place. The definition of an inter-state migrant worker has been expanded to include workers directly employed by an employer, not just those engaged through contractors.
Employers are now required to issue appointment letters to all employees, including casual workers. These letters are expected to include key details such as employee information, designation, category, wages, and applicable social security benefits.
Employers must provide free annual health check-ups or tests for employees. In addition, safety committees must be established by:
- Factories employing 500 or more workers
- Employers engaging 250 or more construction workers
- Employers engaging 100 or more mine workers
Each committee must include representatives from both management and employees.
The Introduction of the Pradhan Mantri Viksit Bharat Rojgar Yojana (PMVBRY) Scheme
The Pradhan Mantri Viksit Bharat Rozgar Yojana will be implemented by the Ministry of Labour and Employment through the Employees’ Provident Fund Organisation (EPFO), a statutory body established under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Benefits of the Scheme:
For employees:
- Greater job formalisation through expanded social security coverage
- On-the-job training to help first-time workers become employable
- Improved long-term employability through sustained employment
- Access to financial literacy skills
For employers:
- Support in offsetting the cost of creating new jobs
- A more stable and productive workforce
- Incentives to expand social security coverage
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INDONESIA
Indonesia Increases Minimum Wage in 36 Provinces
Effective 1 January 2026, Indonesia updated the regional minimum wage rates under Government Regulation Number 49 of 2025.
These are the monthly updated minimum wages:
- North Sumatra – Rp3,228,949
- West Sumatra – Rp3,182,955
- Riau – Rp3,780,495
- Jambi -Rp3,471,497
- South Sumatra – Rp3,942,963
- Bengkulu – Rp2,827,250
- Lampung – Rp3,047,734
- Bangka Belitung Islands – Rp4,035,000
- Riau Islands – Rp3,879,520
- Jakarta – Rp5,729,876
- West Java – Rp2,317,601
- Central Java – Rp2,327,386.07
- Yogyakarta Special Region – Rp2,417,495
- East Java – Rp2,446,880
- Banten – Rp3,100,811
- Bali – Rp3,207,459
- West Nusa Tenggara – Rp2,673,861
- East Nusa Tenggara – Rp2,455,898
- West Kalimantan – Rp3,054,552
- Central Kalimantan – Rp3,686,138
- South Kalimantan – Rp3,725,000
- East Kalimantan – Rp3,762,431
- North Kalimantan – Rp3,775,243
- North Sulawesi – Rp4,002,639
- Central Sulawesi – Rp3,179,565
- South Sulawesi – Rp3,921,088
- Southeast Sulawesi – Rp3,306,496.18
- Gorontalo – Rp3,405,144
- West Sulawesi – Rp3,315,934
- Maluku – Rp3,334,490
- North Maluku – Rp3,510,240
- West Papua – Rp3,841,000
- Papua – Rp4,436,283
- Highland Papua – Rp4,508,714
- South Papua – Rp4,508,100
- Southwest Papua – Rp3,766,000
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MACAU
Macau Increases Minimum Wage
Macau’s statutory minimum wage has increased to 35 patacas per hour. This represents a 2.94% increase which took effect on 1 January 2026. Under the amended legislation, the hourly rate of 35 patacas equates to 280 patacas per day, 1,680 patacas per week, or 7,280 patacas per month.
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MAINLAND CHINA
China Issues New Work Injury Insurance Guide
China’s Ministry of Human Resources and Social Security has issued a new guideline, Opinions (III) on Several Issues Concerning the Implementation of the Regulations on Work-Related Injury Insurance, on 21 November 2025, providing clearer standards on the recognition of work-related injuries.
The guideline confirms that injuries will continue to be recognised as work-related even if medical malpractice occurs during treatment. It also clarifies that injuries sustained while working from home may qualify as work-related, provided the arrangement is employer-approved and supported by credible evidence. However, injuries arising from ad-hoc work tasks conducted via phone calls, emails, or messaging platforms outside approved work arrangements will not be recognised.
At the same time, the guideline reiterates exclusions from work injury coverage. Injuries or deaths resulting from intentional criminal acts, intoxication, drug abuse, self-harm, or suicide are explicitly excluded from work-related injury recognition.
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MALAYSIA
Malaysia Raises E-Invoicing Exemption Threshold to RM1 Million
Malaysia has increased the e-invoicing exemption threshold from RM500,000 to RM1 million in annual revenue, easing compliance requirements for small businesses. Companies with turnover below RM1 million will now be exempt from issuing electronic invoices.
Businesses with annual revenue exceeding RM1 million will be required to implement e-invoicing from 1 January 2026. For new businesses or operations that commenced between 2023 and 2025 and reach the RM1 million threshold, the implementation deadline is 1 July 2026.
For businesses starting operations from 2026 onwards, e-invoicing will apply from 1 July 2026 or the commencement date, whichever is later. However, if first-year revenue is below RM1 million, e-invoicing will only be required from 1 January of the year following the year the threshold is reached.
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NEW ZEALAND
New Zealand Announces Minimum Wage Increase
Effective 1 April 2026, New Zealand’s minimum wage will increase by 2% to NZD 23.95 per hour. The starting-out and training minimum wage rates will also rise to NZD 19.16 per hour. The increase is expected to benefit more than 120,000 workers, particularly younger, part-time, Māori and lower-income employees.
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PHILIPPINES
Philippines Increases Minimum Wages in Cagayan Valley
The Regional Tripartite Wages and Productivity Board (RTWPB) Region II has approved new wage orders increasing minimum wages for workers and domestic workers in the Cagayan Valley region. The changes take effect from 5 November 2025.
Under Wage Order No. RTWPB 2-24, minimum wage earners in the non-agricultural sector will receive a daily increase of PHP 20, while those in the agricultural sector will receive a daily increase of PHP 40. As a result, the minimum daily wage for both sectors will be set at PHP 500. The wage order applies to Tuguegarao, Cauayan, Santiago and Ilagan cities, as well as the provinces of Cagayan, Isabela, Quirino, Nueva Vizcaya and Batanes.
Separately, Wage Order No. 02-DW-07 provides domestic workers with a monthly wage increase of PHP 500, raising the minimum monthly wage to PHP 6,500 across all cities and municipalities in the region, regardless of income classification.
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SINGAPORE
Singapore Raises CPF Basic Healthcare Sum
Effective 1 January 2026, Singapore will increase the Central Provident Fund (CPF) Basic Healthcare Sum (BHS) for members aged below 65 from SGD 75,500 to SGD 79,000. The adjustment reflects rising healthcare costs and is intended to ensure MediSave savings remain adequate for future medical needs.
CPF members who are aged 66 and above in 2026 will not be affected, as their BHS levels are already fixed. The authorities also confirmed that CPF interest rates for Q1 2026 will remain unchanged, at 4% for the Special, MediSave and Retirement Accounts, and 2.5% for the Ordinary Account.
Singapore Updates Transfer Pricing Guidelines
The Inland Revenue Authority of Singapore (IRAS) published the 8th edition of the Transfer Pricing Guidelines on 19 November 2025, providing updated guidance on the application of the arm’s length principle, transfer pricing documentation requirements, and dispute resolution mechanisms.
Key updates include clarifications on simplified transfer pricing documentation, enhanced guidance on related-party services and loans, permanent establishment profit attribution, and revised surcharge rules following transfer pricing adjustments. The guidelines also introduce new provisions on handling disputes and the Mutual Agreement Procedure (MAP).
In addition, IRAS announced a pilot implementation of the OECD Simplified and Streamlined Approach (SSA) for qualifying baseline marketing and distribution transactions, effective from 1 January 2026 to 31 December 2028, allowing eligible taxpayers to optionally apply the SSA during this period.
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SOUTH KOREA
South Korea Raises the Upper Limit Salary for Shorter Working Hours During Childcare
In order to promote the use of the reduction of working hours during childcare, the upper limit of the standard amount applied when calculating benefits will be raised as of January 2026.
The upper limit of the standard amount applied to the first 10 hours of reduction each week will be raised from 2.2 million won to 2.5 million won, and the upper limit of the standard amount for the remaining working hours will be raised from 1.5 million won to 1.6 million won.
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TAIWAN
LPA Contribution Requirement for Foreign Professionals
Foreign professionals employed in Taiwan are now required to participate in the new pension system. Employers must contribute at least 6% of the employee’s monthly LPA wage to the Labour Bureau pension account.
Key points:
- Applies to foreign professionals in specialist roles.
- Required documents: ARC and proof of professional status.
- Immediate actions for employers:
- Verify all eligible foreign professionals that should be enrolled in the new pension system.
- Confirm the choice between the new and old pension systems for foreign professionals.
- Prepare and submit required documentation to the Labor Insurance Bureau.
Minimum Wage Update in Taiwan
Taiwan’s minimum monthly wage has been increased to NT$29,500 from 1 January 2026. The hourly rate will also rise to NT$196.
Amount of Insurance Salary Update
The amount of insurance salary for level 1 changes to TWD29,500 from 1 January 2026.
The Bureau of Labor Insurance shall proactively adjust the insurance salary of the insured person to TWD29,500 if the current amount is lower than TWD29,500.
Updates to Regulations Governing the Withholding of Tax on Wages
The changes of Regulations governing the withholding of tax on wages paid to resident tax on salary paid fixed and monthly is withheld in either according to the wage withholding table or 5%, which is to be selected and applied by the taxpayer.
For the wages for a part-time job and/or a salary not paid monthly, a withholder shall withhold 5% of the payment the payment is increased to TWD90,501 with effect from 1 January 2026.
Leave Units Updates from 1 January 2026
- Employees will be able to take Family Care Leave on an hourly basis, with a maximum of 56 hours per year to address urgent or temporary family care needs. If the 56 hours quota is fully utilised, employees may still request unused No Pay Leave on an hourly basis for caregiving purposes. Employers are not permitted to refuse such requests or deduct employee’s attendance bonus.
- Employees will be able to apply for Unpaid Parental Leave on a daily basis, with a maximum of 30 days within the original unpaid parental leave period. During the application period, employees will remain eligible to receive an 80% salary subsidy from government.
Changes to the Amount of Basic Income Exemption/Deduction
Taiwan sees changes to the amounts of basic income exemption/deduction as the total increase of the applicable CPI for an individual (4.13%) has reached a figure of 3% or higher compared to the index of the year of previous adjustment. This information applies to taxpayers filing their income tax returns in May 2027.
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UNITED ARAB EMIRATES
UAE Updates Wage Protection System (WPS)
The Ministry of Human Resources and Emiratisation (MoHRE) launched an upgraded version of the UAE Wage Protection System (WPS) on 10 December 2025 to strengthen digital wage management and transparency in the private sector.
The upgrade was developed in collaboration with the Central Bank of the UAE, Al Etihad Payments, and several MoHRE-approved financial institutions, including e& Group, Botim, Al Ansari Exchange, Lulu Exchange, GCC Exchange, and Al Maryah Community Bank.
The enhanced WPS now allows real-time, direct data integration between MoHRE systems and participating financial institutions. This enables employers to process salaries faster and more efficiently through digital channels. With more than 99% of private-sector wages – over AED 35 billion each month – already paid through WPS, the upgrade aims to speed up employer registration and verification, improve data connectivity, and create a secure and reliable digital system for tracking wages.
Minimum Wage Update for Emiratis
The Ministry of Human Resources and Emiratisation (MoHRE) announced that the minimum wage for Emiratis working in the private sector increased to AED 6,000 per month, effective 1 January 2026. Employers who hired Emiratis before this date will have until 30 June 2026 to adjust salaries to meet the new minimum wage.
In a press statement, MoHRE confirmed that the new minimum wage applies to new Emirati work permits, as well as existing permits that are renewed or amended from 1 January 2026 onward.
Our UAE team of expertise can help your business further streamline HR operations.
VIETNAM
Vietnam Updates Regional Minimum Wage Effective 2026
Effective 1 January 2026, Vietnam will implement updated regional minimum wage rates under Decree No. 293/2025/ND-CP, replacing Decree No. 74/2024/ND-CP. The new framework increases minimum wages by VND 250,000–350,000 per month, representing an average rise of 7.2%.
New Law on Tax Administration (Law No.: 108/2025/QH15)
The National Assembly has issued a new Law on Tax Administration, establishing an updated legal framework governing tax registration, tax declaration, tax payment, tax administration procedures, and enforcement measures.
- Key highlights include:
- Strengthened taxpayer responsibilities in tax declaration, payment, and record-keeping
- Enhanced application of electronic tax administration and data sharing
- Clearer regulations on penalties, late payment interest, and enforcement measures
- Increased emphasis on risk-based tax management and compliance
- This Law will serve as the overarching framework for tax administration across all types of taxes and fees in Vietnam.
- Effective date:
- The new Tax Administration Law will officially take effect from 1 July 2026. However, certain provisions will be implemented earlier, specifically:
- Provisions under Article 13; and
- The use of electronic invoices by household businesses and individual business persons as stipulated in Article 26, which will be effective from 1 January 2026.
The current Tax Administration Law (Law No. 38/2019/QH14, as amended) will continue to apply until 30 June 2026, except for provisions under Article 51, which will remain effective until 31 December 2025.
The tax authority is responsible for upgrading and completing information systems to support electronic tax transactions. The mandatory application of comprehensive electronic tax administration is expected to be completed before 1 January 2027, in accordance with the roadmap issued by the Ministry of Finance.
Amended Law on Personal Income Tax (Law No.: 109/2025/QH15)
The amended Law on Personal Income Tax continues to regulate taxable income, exemptions, deductions, and tax rates applicable to both resident and non-resident individuals.
- Notable updates include:
- Clarification of taxable income categories and exempt income
- Updated provisions on personal and dependent deductions
- Clearer rules on tax withholding, tax finalization, and compliance obligations
- These changes are particularly relevant for employers, payroll operations, and individual taxpayers.
- Effective date:
- While the amended Personal Income Tax Law will officially take effect from 1 July 2026, provisions relating to income from salary and wages and income from business of resident individuals will be applicable from the 2026 tax year, i.e. from 1 January 2026.
- Accordingly, payroll withholding and personal income tax calculations for income earned from 1 January 2026 onward should be applied in line with the new regulations.
New Law on Employment (Law No. 74/2025/QH15)
The National Assembly has promulgated a new Law on Employment, replacing the current Law on Employment. This Law provides an updated legal framework governing employment policies, labor registration, labor market information systems, skills development, employment services, and unemployment insurance.
Key highlights include:
- Expanded policies to support job creation, vocational skills development, and labor market modernization.
- Establishment and centralized management of a national labor database, with increased application of digital systems.
- Updated regulations on unemployment insurance, including eligibility, contribution basis, benefit levels, and employer responsibilities.
- Strengthened protections against discrimination in employment and misuse of labor data.
The new Law on Employment will officially take effect from 1 January 2026, with transitional provisions applied to ongoing employment and unemployment insurance matters.
Law on Personal Data Protection (Decree No. 356/2025/ND-CP)
The Government has also issued a decree providing detailed guidance on the implementation of the Law on Personal Data Protection. This Decree clarifies key compliance requirements for organizations involved in the collection, processing, storage, and transfer of personal data.
Notable points include:
- Clear classification of basic personal data and sensitive personal data.
- Expanded obligations for data controllers and data processors, including internal policies, access controls, and security measures.
- Enhanced protection requirements for sensitive personal data, such as health data, biometric data, financial data, and location data.
- Applicability to both Vietnamese and foreign organizations that process personal data related to individuals in Vietnam.
These regulations reinforce the importance of data protection compliance, particularly for employers handling employee and customer information.
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