Decree No. 253/2026/ND-CP on elaboration of, measures for organization and guidance for implementation of the Law on Personal Income Tax

 

DECREE

ELABORATION OF, MEASURES FOR ORGANIZATION AND GUIDANCE FOR IMPLEMENTATION OF THE LAW ON PERSONAL INCOME TAX

Pursuant to the Law on Government Organization No. 63/2025/QH15;

Pursuant to the Law on Personal Income Tax No. 109/2025/QH15, amended by Law No. 09/2026/QH16;

At the request of the Minister of Finance;

The Government promulgates a Decree on elaboration of, measures for organization and guidance for implementation of the Law on Personal Income Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree elaborates the following regulations of the Law on Personal Income Tax: Clause 4 Article 2; Point c Clause 2, Clause 11 Article 3; Clause 22 Article 4; Clause 5, Clause 6 Article 5; Article 6; Clause 5 Article 7; Clause 2 Article 8; Clause 2, Clause 4 Article 11; Clause 4 Article 12; Clause 4 Article 13; Clause 3 Article 14; Clause 4 Article 18; Clause 4 Article 19; Clause 3 Article 23; Clause 2 Article 24; Clause 3 Article 27; Clause 5 Article 28.

2. This Decree stipulates measures for organization and guidance for implementation of the Law on Personal Income Tax, including the following contents: Taxpayers who are resident individuals and non-resident individuals; taxable income and incomes excluded from taxable income; income eligible for tax exemption or reduction; eligibility for tax exemption or reduction; basis for calculating personal income tax (“PIT”) on each type of income; conversion of taxable income; tax periods; PIT deduction; PIT declaration and payment on behalf of taxpayers; PIT settlement and refunds; entry into force.

Article 2. Regulated entities

This Decree applies to taxpayers, tax authorities, organizations and individuals relevant to the contents mentioned in Article 1 of this Decree.

Article 3. Taxpayers

1. Taxpayers include resident individuals earning taxable income prescribed in Article 3 of the Law on Personal Income Tax within and outside the territory of Vietnam, and non-resident individuals earning taxable income prescribed in Article 3 of the Law on Personal Income Tax within the territory of Vietnam.

2. The determination of whether a person is a resident individual or non-resident individual shall comply with Article 4 and Article 5 of this Decree.

Article 4. Resident individuals

A resident individual is a person who satisfies any of the conditions specified in Clause 2 Article 2 of the Law on Personal Income Tax, to be specific:

1. He/she is present in Vietnam for at least 183 days in 01 Gregorian calendar or for 12 consecutive months from the date of first arrival in Vietnam. In case of entry or exit, the date of arrival shall be deemed one day, and the date of departure shall be deemed one day. If a person enters and exits within 01 day, it will be considered one day of residence. The date of arrival and date of departure shall be determined according to authentication by the immigration authority on the passport, laissez-passer or documents relevant to the individual’s purpose of entry or exit.

An individual is considered to be present in Vietnam if he/she is physically present within the territory of Vietnam.

2. An individual is considered to a regular residence in Vietnam in one of the following cases:

a) He/she has a registered permanent residence. To be specific:

For Vietnamese citizens: the specific place where the individual regularly and stably resides and has been registered as the permanent residence in accordance with residence laws.

For foreigners: the permanent residence written in the Permanent Residence Card, or the temporary residence declared while applying for issuance of the Temporary Residence Card by a competent authority of the Ministry of Public Security;

b) He/she has residential leases in Vietnam a total duration of at least 183 days in the tax year. To be specific:

An individual who does not have a regular residence as prescribed in Point a of this Clause but has residential leases with a total duration of at least 183 days in the tax year is also considered a resident individual, even if the leases are in different locations. Residential leases include hotels, guest houses, motels, hostels, workplaces, offices, regardless of whether the lease is concluded by the individual or his/her employer.

3. If an individual has a regular residence in Vietnam as prescribed in Clause 2 of this Article but is physically present in Vietnam for fewer than 183 days in the tax year, and is unable to prove his/her residency in another country, he/she will be considered a resident individual of Vietnam.

A person’s residency in another country shall be determined according to his/her Certificate of Residence. In cases where a person is from a country or territory that has an Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Vietnam but does not issue Certificates of Residence, photocopies of the individual’s passport shall be provided as proof of residence duration.

Article 5. Non-resident individuals

Non-resident individuals prescribed in Clause 3 Article 2 of the Law on Personal Income Tax are those who do not satisfy the conditions prescribed in Article 4 of this Decree.

Chapter II

TAXABLE INCOME

Article 6. Taxable income

1. Taxable income of individuals includes the types of income prescribed in Articles 7, 8, 9, 10, 11, 12, 13, 14, 15 and 16 of this Decree, except for tax-exempt income prescribed in Section 1 Chapter III of this Decree.

2. Taxable income of resident individuals and non-resident individuals:

a) Taxable income of resident individuals is income earned within and outside of the territory of Vietnam, regardless of where the income is paid or received.

b) Taxable income of nonresident individuals is income earned within the territory of Vietnam, regardless of where the income is paid or received.

3. The amount of PIT paid in a country that has an Agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with the Socialist Republic of Vietnam may be deducted from the PIT payable in Vietnam under such Agreement.

Article 7. Income from business operations

Income from business operations prescribed in Clause 1 Article 3 of the Law on Personal Income Tax includes:

1. Income from production and/or sale of goods and/or services as prescribed by law. Income of households and individuals that directly produce products from agricultural production, forestry, husbandry, aquaculture, fishing that have not been processed into other products or have only been pre-processed; salt production is only taxable if the tax exemption requirements prescribed in Article 21 of this Decree are not fully satisfied.

2. Income from working as an independent practitioner holding a practicing license or certificate and has applied for business registration as prescribed by law.

3. Income from agent activities, including insurance agents, lottery agents, multi-level marketing agents.

4. Income from brokerage activities as prescribed by law.

5. Income from business cooperation with organizations and enterprises.

6. Income from e-commerce activities, digital platform-based business.

Article 8. Income from salaries and remunerations

Income from salaries and remunerations prescribed in Clause 2 Article 3 of the Law on Personal Income Tax includes:

1. Salaries, remunerations, and amounts of similar nature received by employees from employers in monetary form or in any other non-monetary form.

2. Payments, monetary or non-monetary benefits received by the individual from the paying organization, individual or employer:

a) Payments for participation in research topics, projects, or schemes; writers’ pays in accordance with the law on writers’ pays; payments for participation in teaching activities; payments for participation in cultural, artistic, sports performances;

b) Payments for participation in the Board of Directors, Board of Controllers, Management Board, legally established occupational associations and societies, and other organizations;

c) Payments for provision of services by individuals without business registration and taxpayer registration, with or without a license or practicing certificate;

d) Membership fees and expenses for other services provided for the individual for healthcare, recreation, sports, entertainment, or beauty care. Where such services are used collectively and the membership card does not specify the name of the individual or group of individuals, their value shall not be included in taxable income;

dd) Fixed allowances for office supplies, business travel, phone calls, work-related clothing of the individual that exceed the following levels:

For cadres, civil servants and public employees working in state administrative agencies, public service units, Communist Party organizations, organizations and associations: the allowance levels shall follow regulations issued by competent state authorities or the internal rules of such agency or organization.

For employees working in other enterprises and organizations having business operations: the allowance levels shall be appropriate for determination of deductible expense when calculating corporate income tax as prescribed by regulations of law on corporate income tax.

For employees working in international organizations, representative offices of foreign organizations: the allowance levels shall follow regulations issued by such international organizations and representative offices of foreign organizations;

e) Contributions made by the employer to the supplemental retirement insurance as prescribed by the Law on Social Insurance, payment for purchase of voluntary retirement insurance and life insurance for employees;

g) Mid-shift meals or lunch expenses provided by employers for employees in excess of VND 1,2 million per person per month. If the employer provides meals directly (by cooking, purchasing, or issuing vouchers), such expenses shall not be included in the employees’ taxable income;

h) Payments for housing, electricity, water, and associated services (if any)

In cases where the employees benefit from housing built by the employer for their own employees, such benefits, including electricity, water, and associated services (if any), shall not be included in the employees’ taxable income.

In cases where rents, expenses for electricity, water, and associated services (if any) are covered by the employer, they may be included in the employee’s taxable income if they do not exceed 15% of such employee’s income paid by the same employer exclusive of payments for housing, electricity, water, and associated services (if any);

i) Monetary or non-monetary bonuses, including bonuses in the form of securities; bonuses from contests or events organized by the employer for employees. Non-monetary bonuses shall be converted in accordance with Article 17 of this Decree;

k) Other benefits provided by the employer for employees, including expenditures on public holidays; payments for consulting services or tax services designated for a specific individual or group of individuals; payments for domestic servants, drivers, or other household workers under contracts.

3. Allowances, benefits, and other income, except for the following:

a) Monthly and preferential allowances and benefits, and one-off benefits as prescribed by the law on preferential treatment for persons with meritorious services;

b) Monthly benefits and one-off benefits for individuals who participated in the resistance war, national defense, international missions, or “thanh nien xung phong” members who have fully discharged their duties;

c) National defense and security allowances and benefits; allowances and benefits for the armed forces;

d) Hazardous or dangerous work allowances, and in-kind benefits for occupations or jobs performed in hazardous or dangerous workplaces;

dd) Attraction allowances and region-based allowances;

e) Allowances, benefits, and subsistence allowances paid by overseas Vietnamese agencies to their members, accompanying spouses and children in accordance with the Law on Representative Missions of the Socialist Republic of Vietnam Abroad, Decree No. 08/2019/ND-CP on certain benefits for members of overseas Vietnamese agencies, and amending, supplementing, or replacing documents thereof;

g) Occupational accident and occupational disease benefits, one-off benefits for childbirth or adoption, work capacity reduction benefits, one-off retirement payment, monthly survivor benefits, and other allowances as prescribed by social insurance laws;

h) Emergency hardship benefits, unemployment benefits, severance pay, and redundancy pay as prescribed by law.

In cases where the severance pay or redundancy pay stipulate in the organization’s or enterprise’s financial regulations, internal regulations, employment contracts or collective bargaining agreements is higher than the levels prescribed by law, the actual payments exceeding such levels shall not be included in the employee’s taxable income;

i) Allowances for social protection subjects prescribed by regulations of law on social protection;

k) Service allowances for senior leaders;

l) One-off benefits for individuals when transferring work to extremely disadvantaged areas, and one-off support for cadres and civil servants performing tasks related to national sovereignty over seas and islands as prescribed by law. One-off relocation benefits for foreigners moving to Vietnam, Vietnamese working abroad, or Vietnamese residing long-term overseas returning to work in Vietnam.

One-off relocation benefits for foreigners moving to Vietnam, Vietnamese working abroad, or Vietnamese residing long-term overseas returning to work in Vietnam shall follow the levels written in the assignment or transfer decisions, financial regulations or internal regulations, employment contracts or collective bargaining agreements;

m) Allowances for village and commune health workers;

n) Industry- and occupation-specific allowances.

Allowances and subsidies not included in taxable income under this Clause must be prescribed by competent authorities in accordance with laws on preferential treatment for persons with meritorious services, national defense, security, diplomacy, labor, social insurance, healthcare, education and training, and other relevant laws. In cases where the allowances or subsidies received exceed the prescribed levels, the excess must be included in the individual’s taxable personal income, except for the cases specified in Point h of this Clause.

4. Income that is not considered salaries and remunerations and not included in taxable income includes:

a) Monetary awards attached to titles awarded by the State; monetary awards attached to emulation titles and forms of commendation under emulation and commendation laws; monetary awards attached to national or international prizes recognized by the State of Vietnam; monetary awards for technical improvements, inventions, and innovations recognized by competent authorities; monetary rewards for detecting and reporting violations of law to competent authorities;

b) Financial support from employers for medical examination and treatment of serious illnesses of employees and their family members, including: biological children, adopted children, stepchildren; spouse; biological parents; parents-in-law; stepparents; adoptive parents.

The deductible amount of financial support is the actual amount provided by the employer according to invoices and proofs of payment, but not exceeding the medical expenses paid by the employee and their family members after deducting insurance payout (if any).

Serious illnesses shall be determined in accordance with regulations of the Minister of Health;

c) Amounts received under regulations on use of vehicles in state agencies, public service providers, Communist Party organizations, and associations; shuttles for transport of employees between their residence and workplace according to internal regulations;

d) Amounts received under regulations on official housing as prescribed by law;

dd) Amounts received in addition to salaries and remunerations for participating in or serving activities of Communist Party, Youth Union, or National Assembly, or for drafting, commenting on, appraising, or reviewing legal documents, Resolutions, and political reports; participating in inspection and supervision teams; meeting voters, receiving citizens; uniforms and other tasks directly serving the activities of the Office of the National Assembly, the Ethnic Council and Committees of the National Assembly, delegations of National Assembly deputies, the Communist Party Central Office and Communist Party Committees, Communist Party Committees of provinces and cities, and divisions thereof;

e) Amounts paid or reimbursed by the employer for purchase of two-way air tickets for foreign employees or Vietnamese employees working abroad to take annual leave once a year, between Vietnam and the foreign employee’s home country or the country where their family resides, or between the country where the Vietnamese employee is working (host country) and Vietnam;?

g) Tuition fees for children of foreign employees’ to study in Vietnam, for children of Vietnamese employees working abroad to study abroad from preschool to high school, paid or reimbursed by the employer;

h) Voluntary insurance premiums paid by the employer for employees without premium accumulation (accumulation value), including commercial (private) health insurance and term life insurance (excluding refundable term life insurance), where the policy holder does not receive any accumulation value from participation in such insurance, apart from insurance payouts or compensation under the insurance contract.

If such voluntary and non-accumulating insurance is purchased from insurers that are not established and operating under the law of Vietnam but permitted to sell insurance in Vietnam, it will also be excluded from taxable income prescribed in this Point;

i) Training expenses paid by the employer to improve employees’ qualifications and occupational skills relevant to their professional work or according to the employer’s plan;

k) Amounts paid by the employer to suppliers or employees serving mobilization, reassignment, business travel of employees under decisions, financial regulations, internal regulations, employment contracts, or collective bargaining agreements, provided they are accompanied by invoices and proofs of payment as per regulations;

) Income received by individuals from associations or organizations when they are members of such associations or organizations for creating literary or artistic works to fulfill political tasks assigned by the State or under programs consistent with the charter of such associations or organizations, funded by the state budget or managed according to state regulations;

m) The employer’s payments for funeral or wedding expenses of employees and their families under the income payer’s financial regulations, internal regulations, employment contracts or collective bargaining agreements and not exceeding the deductible expense threshold prescribed by corporate income tax laws;

n) Money and benefits received from union financial sources that are not considered salaries or remunerations under the Law on Trade Unions;

o) Nutrition allowances and special health care benefits for women as prescribed in Article 5 and Article 8 of Decree No. 349/2025/ND-CP on benefits and policies for members of sports teams participating in centralized training and competition.

Article 9. Income from capital investment

Income from capital investment as prescribed in Clause 3 Article 3 of the Law on Personal Income Tax includes:

1. Interest received from lending to organizations, enterprises, households, or individuals under loan contracts or loan agreements.

2. Share dividends; profits on capital contribution to limited liability companies, partnerships, cooperatives, cooperative unions, joint ventures, business cooperation contracts, and other forms of business prescribed by law; profits on capital contribution to credit institutions; profits on capital contribution to securities investment funds and other investment funds established and operating under the law.

3. Income from capital investment in other forms such as:

a) The increase in the value of contributed capital received upon dissolution of an enterprise, conversion of business model, full division, partial division, acquisition, consolidation of enterprises, or upon withdrawal of capital;

b) Income from interest on bonds, treasury bills, and other valuable papers issued by domestic organizations;

c) Income from capital investment in other forms prescribed by law, including cases of capital contribution in kind, land use rights, property affixed to land, intellectual property rights, technology, and technical know-how;

d) Income from dividends paid in shares, shares issued from equity to existing shareholders (bonus shares), and income from reinvested profits.

Article 10. Income from capital transfer

Income from capital transfer as prescribed in Clause 4 Article 3 of the Law on Personal Income Tax includes:

1. Income from transferring part or all of contributed capital (stakes) in limited liability companies, partnerships, business cooperation contracts, cooperatives, cooperative unions, people’s credit funds, and other organizations.

2. Income from securities transfer, including income from transferring shares, rights to purchase shares; transferring bonds, treasury bills, fund certificates, and other types of securities under securities laws; income from transferring shares of individuals in joint-stock companies under Clause 2 Article 4 of the Law on Securities and Article 121 of the Law on Enterprises.

3. Income when contributing capital in the form of stakes or securities to establish an enterprise or increase the capital of an enterprise under the law.

4. Income from capital transfer in other forms, including selling enterprises, transferring capital contribution rights, and other forms of capital transfer under the law.

5. In case of selling an entire private enterprise or a one-member limited liability company owned by an individual in the form of capital transfer associated with real estate, the income shall be considered income from real estate transfer.

Article 11. Income from real estate transfer

Income from real estate transfer as prescribed in Clause 5 Article 3 of the Law on Personal Income Tax is income from transfer or authorization activities where the authorized party has full rights equivalent to ownership of real estate under civil law. To be specific:

1. Income from transferring land use rights; income from transferring land use rights and assets affixed to land, where assets affixed to land include:

a) Residential houses, including off-the-plan residential houses;

b) Infrastructure and construction works affixed to land, including off-the-plan construction works prescribed by real estate business laws;

c) Assets that are agriculture, forestry, or aquaculture products affixed to land.

2. Income from transfer of ownership or use rights of residential houses, including off-the-plan residential houses prescribed by real estate business laws.

3. Income from transfer of land lease rights (including land with water surface) or water surface lease rights.

4. Other income from real estate transfer in any form, including when contributing capital in the form of real estate to establish an enterprise or increase the capital of an enterprise under the law.

Article 12. Income from winnings

 Income from winnings prescribed in Clause 6 Article 3 of the Law on Personal Income Tax is money or items received by the individual, including:

1. Lottery winnings paid by lottery companies.

2. Promotional winnings when purchasing goods or services under the Law on Commerce.

3. Winnings from betting activities permitted by law.

4. Winnings from games, contests with prizes, and other forms of prizes, except casino prizes and monetary rewards prescribed in Point i Clause 2 Article 8 of this Decree.

Article 13. Income from royalties

Income from royalties prescribed in Clause 7 Article 3 of the Law on Personal Income Tax includes:

1. Income from transfer or licensing of subject matters of intellectual property rights under intellectual property laws.

2. c) Income from technology transfer under technology transfer laws.

Article 14. Income from franchising

Income from franchising as prescribed in Clause 8 Article 3 of the Law on Personal Income Tax is income received by individuals from franchise contracts, including re-franchising under commerce laws.

Article 15. Income from receipt of inheritance or gifts

Income from receipt of inheritance or gifts as prescribed in Clause 9 Article 3 of the Law on Personal Income Tax includes:

1. Income from receipt of inheritance or gifts that are part or all of stakes in limited liability companies, partnerships, business cooperation contracts, cooperatives, cooperative unions, people’s credit funds, and other organizations.

2. Income from receipt of inheritance or gifts that are shares, rights to purchase shares; bonds, treasury bills, fund certificates, and other types of securities under securities laws; shares of individuals in joint-stock companies under Clause 2 Article 4 of the Law on Securities and Article 121 of the Law on Enterprises.

3. Income from receipt of inheritance or gifts that are real estate, including: land use rights; land use rights with property affixed to land; ownership of houses, including off-the-plan houses; infrastructure and construction works affixed to land, including off-the-plan construction works, right to lease land under land lease contracts (including land with water surface); right to lease water surface, other real properties prescribed by law.

4. Income from inheritance or gifts that are of automobiles, motorcycles, mopeds, ships (including barges, canoes, tugboats, boats, yachts), aircraft, hunting rifles, sporting guns, and other assets subject to registration of ownership or use rights with regulatory authorities.

Article 16. Other income

Other income as prescribed in Clause 10 Article 3 of the Law on Personal Income Tax includes:

1. Income from transferring the country code domain “.vn,” which is income received from transferring the right to use the country code domain “.vn” to other organizations or individuals.

2. Income from transfer of green house gas reduction results, individual’s granted carbon credits, carbon credits, except for the cases specified in Clause 1 Article 34 of this Decree.

3. Income from transfer of license plates purchased at auction as prescribed by law.

4. Income from transferring digital assets, including virtual assets, encrypted assets, and other digital assets under digital technology industry laws.

Article 17. Conversion of taxable income

1. Taxable income in foreign currency must be converted into Vietnamese Dong (VND) at the buying exchange rate quoted by the commercial bank where the individual opens his/her account for transactions, or where the income payer opens the account to pay the individual, at the time of payment. If the organization or individual does not have an account in Vietnam, the income shall be converted at the reference exchange rate between VND and USD, or the cross rate between VND and other foreign currencies published on the web portal of the State Bank of Vietnam (SBV), at the time of payment.

2. Taxable income in non-monetary form shall be converted into VND according to the market price of the product or service, or of similar or equivalent products or services, at the time of payment.

Chapter III

INCOME ELIGIBLE FOR TAX EXEMPTION OR REDUCTION

Section 1. INCOME ELIGIBLE FOR TAX EXEMPTION (hereinafter referred to as “tax-exempt income”)

Article 18. Income from transfer, receipt of inheritance of gifts that are real estate

1. PIT is exempt for income from transfer, receipt of inheritance or gifts in the form of real estate (including off-the-plan construction works and houses under real estate business laws) between spouses, between biological parents and biological children; between adoptive parents and adopted children; between parents-in-law and children-in-law (even when a spouse is dead); between grandparents and grandchildren; and between biological siblings.

2. In cases where the real estate (including off-the-plan construction works and houses under real estate business laws) is divided between the husband and wife upon divorce, either by agreement or court ruling, the income from such division is exempt from tax.

3. Documentation and procedures for tax exemption shall comply with tax administration laws.

Article 19. Income from transfer of an individual’s only house, residential land use rights and property affixed to land

1. PIT is exempt for income from transfer of a house, residential land use rights and property affixed to land if it is the only residential house and residential land use rights owned by the individual in Vietnam.

PIT exemption prescribed in this Clause does not apply to transfer of off-the-plan houses and construction works.

2. To be eligible for PIT exemption as prescribed in Clause 1 of this Article, the individual who transfers his/her only residential house and residential land use rights must satisfy the following conditions:

a) He/she owns only one residential house or LUR of only one residential land plot (including cases where there is a residential house or construction work affixed to that land) at the time of transfer. If the individual owns other off-the-plan construction works or residential houses at the time of transfer, the transfer will be ineligible for PIT exemption.

In case of transfer of a jointly owned residential house or residential land use right (even if it is jointly owned by the husband and wife), only the individual who does not own a residential house or residential land use right elsewhere will be eligible for PIT exemption; the joint owner who also owns residential house or residential land use right elsewhere shall not be exempt from PIT;

b) He/she has owned the residential house or residential land use right for at least 183 days by the date of transfer.

The ownership date shall be the date of issuance of the Certificate of land use rights, house ownership, and other assets attached to land. In cases of re-issuance or replacement under land laws, the ownership date shall be the date of the original Certificate before re-issuance or replacement;

c) The entirety of the residential house or residential land use right is transferred. If the individual owns or jointly owns the sole house or residential land use right but transfers only part of it, income from the transferred portion shall not be exempt from PIT.

3. The individual shall take responsibility for declaration of his/her only residential house or residential land use right. If incorrect declaration is discovered, the individual shall pay tax arrears and incur penalties in accordance with tax administration laws and other relevant laws.

4. Documentation and procedures for tax exemption shall comply with tax administration laws.

Article 20. Income from the value of LUR allocated by the State

1. PIT is exempt for income from value of LUR allocated by the State with land levy exemption or reduction as prescribed by law.

2. If the individual is granted land levy exemption or reduction upon land allocation, but later transfers the area of land granted land levy exemption or reduction, tax on income from real estate transfer shall be declared and paid.

3. Documentation and procedures for tax exemption shall comply with tax administration laws.

Article 21. Income of households and individuals that directly produce products from agricultural production, forestry, husbandry, aquaculture, fishing that have not been processed into other products or have only been pre-processed; salt production

1. PIT is exempt for income of households and individuals that directly produce products from agricultural production, forestry, husbandry, aquaculture, fishing that have not been processed into other products or have only been pre-processed; salt production

2. To be eligible for PIT exemption under Clause 1 of this Article, the household or individual must satisfy the following conditions:

a) The household or individual has lawful land use right or land lease right under a land lease contract (including land with water surface), right to use water surface, right to lease water surface serving agricultural production, forestry, husbandry, aquaculture, fishing, salt production.

In case of sublease of land or water surface from other organizations or individuals, there must be a written lease agreement in accordance with the law (except for households and individuals contracted to plant, care for, manage, and protect forests under the law). For fishing activities, there must be a certificate of ownership or a lease contract for vessels used for fishing, and direct participation in fishing activities (except for river fishing using bottom nets and fishing activities prohibited by law);

b) The individual actually resides in locality of agricultural production, forestry, husbandry, aquaculture, fishing, or salt production

The locality of agricultural production, forestry, husbandry, aquaculture, fishing, or salt production prescribed in this point means commune-level administrative divisions, including communes adjacent to the commune of production.

Regulations on residence do not apply to fishing activities.

3. The determination of whether a product has been processed into other products or have only been pre-processed as prescribed in Clause 1 of this Article shall comply with Decree No. 181/2025/ND-CP and amendments thereof.

Article 22. Income from share dividends of dividends of members of agricultural cooperatives and cooperative unions, of individuals who are farmers signing “Cánh đồng lớn” (“Big Farm”) contracts, production forest cultivation contracts, aquaculture contracts with enterprises

1. PIT is exempt for income from share dividends of dividends of members of agricultural cooperatives and cooperative unions, of individuals who are farmers signing “Big Farm” contracts with enterprises for production or sale agriculture, production forest, or aquaculture products.

2. The determination of members of cooperatives and cooperative unions as the basis for PIT exemption under Clause 1 of this Article shall comply with cooperative laws.

3. To be eligible for PIT exemption as prescribed in Clause 1 of this Article, the individual who enters into the “Big Farm”, production forest planting or aquaculture contract must satisfy the following conditions:

a) He/she has lawful land use right or land lease right under a land lease contract (including land with water surface), right to use water surface, right to lease water surface contract execution, even if land or water surface is sublet by another organization or individual as prescribed by law;

b) The individual actually resides in the locality of the “Big Farm”, production forest planting or aquaculture project.

The of the “Big Farm”, production forest planting or aquaculture project means a commune-level administrative divisions, including communes adjacent to the commune where the project is executed.

Article 23. Income from conversion of agricultural land allocated by the State to households or individuals for production

1. PIT is exempt for income of individuals from conversion of agricultural land allocated for production by the State to rationalize agricultural production without changing the land use purpose of the household or individual engaged in agricultural production.

2. Documentation and procedures for tax exemption shall comply with tax administration laws.

Article 24. Income from interest (coupon) on government bonds, municipal bonds, interest on deposit at credit institutions, interest on life insurance policies

1. PIT is exempt for income of individuals from interest on government bonds issued by the Government of Vietnam, and municipal bonds issued by the People’s Committees of provinces and cities.

2. PIT is exempt for interest received by individuals on deposit in VND, gold, foreign currencies at credit institutions and foreign bank branches established and operating under the Law on Credit Institutions in the form of demand deposit, term deposit, certificates of deposit (including profit from transferring certificates of deposit), promissory notes, treasury bills, and other form of money deposit, provided both principal and interest are fully repaid to the depositor as agreed.

3. PIT is exempt for interest received by individuals on life insurance policies purchased from insurers.

Article 25. Income from remittances

1. PIT is exempt for remittances received by individuals in Vietnam from family members who are Vietnamese nationals residing overseas, or Vietnamese nationals working or studying overseas

2. In cases where an individual receives remittances from family members who are foreigners satisfying conditions of SBV for encouraging transfer of money to Vietnam, such income is also exempt from PIT.

3. The basis for determining tax-exempt income is documents proving the source of inbound remittances and proofs of payment provided by the paying organization (if any).

Article 26. Night shift pay, overtime pay, unused annual leave payouts

1. PIT is exempt for payments for night shift and overtime work at the work place in accordance with regulations of labor laws on working conditions and time.

The paying organization or enterprise must prepare a statement of night work and overtime hours at the workplace, and the amounts of night shift pay and overtime pay received by employees. This statement must be kept at the paying organization or enterprise and presented whenever requested by the tax authority. If such statement is not prepared, the paying organization has the responsibility to prove the night shift pay and overtime pay through payrolls, attendance sheets, employment contracts, and other lawful documents.

2. PIT is exempt for unused annual leave payouts in accordance with Clause 3 Article 113 of the Labor Code, regulations of the Law on Cadres And Civil Servants, and the Law on Public Employees.

3. In cases where the night shift pay, overtime pay, or unused annual leave payout exceeds the levels prescribed by law, the excess portion shall be included in the individual’s taxable income.

Article 27. Retirement pensions paid by the Social Insurance Fund; income paid by the supplemental retirement insurance fund or voluntary pension fund

1. PIT is exempt for retirement pensions paid by the Social Insurance Fund in accordance with social insurance laws, including individuals who are living and working in Vietnam and receive retirement pensions from abroad.

2. PIT is exempt for income paid by the supplemental retirement insurance fund or voluntary pension fund, regardless of whether payment is periodic, one-off, before or after the retirement age.

Article 28. Income from scholarships

1. PIT is exempt for income from scholarships funded by state budget, including: scholarships of the Ministry of Education and Training, Departments of Education and Training, National Scholarship Fund, talent promotion and study encouragement funds, public educational institutions, or other scholarships funded by state budget.

2. PIT is exempt for income from scholarships (including living allowances) given by domestic or and overseas organizations under their scholarship programs.

3. Organizations and individuals giving scholarships to individuals as prescribed in Clause 1 and Clause 2 of this Article shall retain the scholarship decisions and proofs of scholarship payment. Individuals who directly receive scholarship from foreign organizations shall retain scholarship documents or records (if any) as proofs.

Article 29. Income from compensation under life or non-life insurance policies, compensation for occupational accidents, state compensation, and other compensations

1. PIT is exempt for compensation under life insurance, non-life insurance, commercial health insurance policies provided by life insurers, non-life insurers, commercial health insurers, microinsurance providers for individuals who are policyholders or designated beneficiaries as agreed in such insurance policies.

The basis for determining such compensation is the written compensation decision or document of the insurer or the court, and proofs of payment of compensation.

2. PIT is exempt for compensation received by employees from employers or Social Insurance Fund for occupational accidents that happen during work.

The basis for determining such compensation is the written compensation decision or document of the employer or the court, and proofs of payment of compensation.

3. PIT is exempt for income from compensation, assistance and relocation due to land repossession by the State, including income from compensation or support provided by organizations and enterprises upon land repossession.

The basis for determining income from such compensation is the compensation and relocation plan approved by competent authorities.

4. PIT is exempt for income from state compensation as prescribed by state compensation laws.

The basis for determining such compensation is the decision issued by a competent authority requiring the agency or individual making the wrongful decision to pay compensation, and proofs of payment of compensation.

5. PIT is exempt for income from compensation for non-contractual damage (including late payment interest) under the Civil Code.

The basis for determining such compensation is the effective judgment or decision of the court, or the notarized or authenticated agreement on compensation between the parties as prescribed by law.

Article 30. Income from charitable organizations and charity funds

1. PIT is exempt for income from charitable organizations and charity funds licensed or recognized by competent authority and operating for charitable, humanitarian, and non-profit purposes.

2. The basis for determining tax-exempt income is the payment or provision documents or decisions of the charitable organizations and charity funds.

Article 31. Income from foreign aid

1. PIT is exempt for income from foreign aid for humanitarian or charitable purposes in both governmental and non-governmental forms approved by competent authorities, including Official Development Assistance (ODA), non-ODA aid, international emergency aid for disaster relief and recovery.

2. The basis for determining tax-exempt income is the document issued by the competent authority approving the receipt of aid.

Article 32. Income from salaries and remunerations of Vietnamese seafarers

1. PIT is exempt for income from salaries and remunerations of Vietnamese seafarers working for foreign shipping companies or Vietnamese shipping companies engaged in international transport.

2. The determination of eligibility for PIT exemption of Vietnamese seafarers working for foreign shipping companies or Vietnamese shipping companies engaged in international transport prescribed in Clause 1 of this Article shall comply with Vietnam Maritime Code and relevant legislative documents.

Article 33. Income from provision of goods and/or services directly serving offshore fishing activities

PIT is exempt for income of individuals who are shipowners, individuals with the right to use ships, and individuals working on ships from provision of goods and/or services directly serving offshore fishing activities as prescribed by law.

Article 34. Income from transfer of green house gas (GHG) reduction results, transfer of carbon credits; income from interest on green bonds, transfer of green bonds

1. PIT is exempt for income from initial transfer of individuals’ recognized GHG reduction results and granted carbon credits.

2. PIT is exempt for income from interest on green bonds.

3. PIT is exempt for income from initial transfer of green bonds after issuance.

Tax-exempt income from transfer of green bonds prescribed in this Clause is the income received by the individual from transfer of green bonds directly purchased by the individual from the green bond issuer.

Article 35. Income from salaries and remunerations for performance of science, technology and innovation tasks

1. PIT is exempt for income from salaries and remunerations for performance of science, technology and innovation tasks.

2. Tax-exempt income of individuals from salaries and remunerations for performance of science, technology and innovation tasks is determined as follows:

a) For performance of science, technology and innovation tasks funded by state budget:

Salaries and remunerations of individuals performing science, technology and innovation tasks funded by state budget are payments for their participation in performance of science, technology and innovation tasks prescribed in Point a Clause 1 Article 6 of Decree No. 265/2025/ND-CP.

Payments to individuals for participation in performance of science, technology and innovation tasks shall be determined on the basis of science, technology and innovation tasks funded by state budget approved by competent authorities in accordance with Decree No. 265/2025/ND-CP elaborating some Articles of the Law on Science, Technology and Innovation on scientific research, technological development and innovation programs and tasks; and some regulations on promoting scientific research, technological development and innovation activities and Decree No. 268/2025/ND-CP elaborating some Articles of the Law on Science, Technology and Innovation on innovation; promotion of scientific research, technological development and innovation in enterprises, recognition of innovation centers, support for startups; recognition of startup founders and companies; startup network and ecology.

b) For performance of science, technology and innovation tasks not funded by state budget:

Science, technology and innovation tasks not funded by state budget are science, technology and innovation tasks prescribed by regulations of law on science, technology and innovation, approved and paid for by the enterprise using its lawful sources or lawful sources of cooperating units, and not covered by state budget.

The determination of salaries and remunerations of individuals performing science, technology and innovation tasks not funded by state budget shall comply with regulations on enterprises’ payments to experts, scientists, individuals performing scientific research, technological development and innovation (hereinafter referred to as “R&D and innovation”) tasks in Clause 1 Article 15 of Decree No. 265/2025/ND-CP, or regulations on enterprises’ payment of salaries and remunerations to employees directly participating in R&D in Clause 2 Article 15 of Decree No. 265/2025/ND-CP.

Enterprises are responsible for establishing and issuing internal procedures for managing R&D and innovation tasks under their authority, for the compliance of R&D and innovation tasks they approve with regulations of law on science, technology and innovation.

Documentation for determination of eligibility for exemption of PIT on income from salaries and remuneration from performance of science, technology and innovation tasks not funded by state budget includes: the approval decision or description of science, technology and innovation tasks; R&D and innovation contracts; transfer and acceptance records, contract finalization documents, and related documents, invoices and proofs of payment (if any). Such documentation shall be retained at the income-paying organization or enterprise and must be presented whenever requested by the tax authority.

Article 36. Income from copyrights of performance of science, technology and innovation tasks

1. PIT is exempt for income from copyrights of science, technology and innovation tasks when their results are commercialized under regulations of law on science, technology, innovation and intellectual property.

2. The commercialization of R&D and innovation results shall comply with Article 27 of the Law on Science, Technology and Innovation.

Article 37. Income of individual investors and experts from startups, founders of startups, individual investors in venture capital funds

1. PIT is exempt for income from capital investment of individual investors from startup projects, founders of startup companies, individual investors contributing capital to venture capital funds.

2. PIT is exempt for income from salaries and remunerations of experts working for startup projects or startup companies.

3. The determination of startup projects, startup companies, experts, individual investors, and founders of startup companies shall comply with regulations of law on science, technology and innovation; the determination of venture capital funds, startup funds shall comply with regulations of law on science, technology and innovation and regulations of law on assistance for small and medium enterprises.

Article 38. Income from salaries and remunerations of foreign experts working for programs/projects funded by ODA grants, foreign non-governmental programs/projects in Vietnam; income of individuals who are Vietnamese nationals working for representative agencies of international organizations of the United Nations System in Vietnam; income of individuals who participate to UN peacekeeping forces

 1. PIT is exempt for income from salaries and remunerations of foreign experts working for programs/projects funded by ODA grants who do not have Vietnamese nationality and enter Vietnam to provide professional counsel or perform other tasks serving research, development, appraisal, monitoring, assessment, management and execution of programs/projects funded by ODA grants under international treaties on ODA grants between competent authorities of Vietnam and the foreign countries.

PIT exemption prescribed in this Clause shall be granted in the following cases:

a) The foreign party selects and contracts with experts or contractors (companies) whose experts are listed in the bidding documents of the contractors (companies) on the basis of bidding results approved by a competent authority of the foreign party and accepted by the Vietnamese party;

b) The Vietnamese party selects and contracts with experts or contractors (companies) whose experts are listed in the bidding documents of the contractors (companies) on the basis of bidding results approved by a competent authority of the Vietnamese party and accepted by the foreign party.

2. PIT is exempt for income from salaries and remunerations of foreign experts who do not have Vietnamese nationality and work for programs/projects/non-project assistance funded by non-ODA aid, international emergency aid for disaster relief and recovery (including aid from foreign non-governmental organizations) in Vietnam to directly carry out activities of such programs/projects/non-project assistance on the basis of agreements between the foreign donors and the governing bodies or owners of the projects of Vietnam specified in the program/project/non-project assistance documents approved in accordance with regulations of law on receipt and management of foreign aid.

PIT exemption prescribed in this Clause shall be granted in the following cases:

a) The foreign non-governmental organization selects and contracts with foreign experts under terms of reference attached to the contract;

b) The governing body of such program/project/non-project assistance selects and contracts with foreign experts under terms of reference attached to the contract.

3. PIT is exempt for income from salaries and remunerations of Vietnamese individuals working at representative offices of international organizations under the United Nations System in Vietnam, provided they have Vietnamese nationality, hired under employment contracts to work at representative offices of international organizations under the United Nations System in Vietnam, excluding Vietnamese individuals hired on an hourly basis.

4. PIT shall be exempt for income from salaries and remunerations of individuals for their participation in UN peacekeeping forces under decisions of competent authorities during their mission period.

5. Documentation and procedures for tax exemption prescribed in Clauses 1, 2 and 3 of this Article shall comply with tax administration laws.

Article 39. Income of individuals who are owners of sole proprietorships and individuals who are owners of single-member limited liability companies

PIT is exempt for income after payment of corporate income tax of individuals who are owners of sole proprietorships, individuals who are owners of single-member limited liability companies.

Section 2. OTHER CASES OF PIT EXEMPTION AND REDUCTION

Article 40. PIT reduction due to natural disasters, epidemics, fires, accidents, serious illnesses

1. Taxpayers who are facing difficulties due to natural disasters, epidemics, fires, accidents, or serious illnesses affecting their ability to pay PIT shall be given PIT reduction corresponding to the level of damage but not exceeding the amount of PIT payable.

Serious illnesses shall be determined in accordance with regulations of the Minister of Health.

2. PIT reduction shall be considered annually. PIT reduction shall be considered for the specific year in which the taxpayer faces difficulties due to natural disasters, epidemics, fires, accidents, or serious illnesses.

3. The PIT amount considered for reduction is the total PIT payable by the taxpayer in the tax year, including:

a) PIT payable periodically on income from business operation and income from the individual’s salaries and remunerations;

b) Paid or deducted PIT on income from capital investment, capital transfer, real estate transfer, winnings, royalties, franchising, inheritance, gifts, and other income.

4. The basis for determining the extent of damage eligible for PIT reduction is the total actual expenses incurred to remedy the damage or medical expenses minus (-) compensation or insurance payout from insurers (if any) or from organizations or individuals causing the damage (if any).

5. PIT reduction shall be determined as follows:

a) If the PIT amount payable in the year is greater than the damage, PIT reduction shall be equal to the damage;

b) If the PIT amount payable in the year is smaller than the damage, PIT reduction shall be equal to the PIT amount payable.

6. Documentation and procedures for tax reduction prescribed in this Article shall comply with tax administration laws.

Article 41. PIT exemption for individuals in the high-quality digital technology industry workforce

1. PIT shall be exempt for 05 years on income from salaries and remunerations of individuals in the high-quality digital technology industry workforce in the following cases:

a) Income from digital technology industry projects in concentrated digital technology zones;

b) Income from projects for research, development, manufacture of key digital products, semiconductor chips, artificial intelligence systems;

c) Income from training digital technology industry workforces.

2. The determination of high-quality digital technology industry workforce as the basis for PIT exemption under Clause 1 of this Article shall comply with regulations of law on digital technology industry and relevant laws.

a) The determination of individuals in the high-quality digital technology industry workforce shall comply with Articles 5, 6, 7, 8, 9 and 10 of Decree No. 353/2025/ND-CP elaborating the Law on Digital Technology Industry and regulations of law on digital technology industry;

b) The determination of digital technology industry activities shall comply with Article 13 of the Law on Digital Technology Industry and Article 4 of Decree No. 353/2025/ND-CP.

3. PIT exemption period shall be a continuous period of time beginning from the month in which the tax-exempt income is earned. If income is earned during the month, the full month will also be included in the PIT exemption period.

4. In cases where an individual has both tax-exempt income under Clause 1 of this Article and other income from salaries and remunerations, the PIT exempted shall be determined as follows:

5. PIT deduction and settlement shall comply with Article 50 and Article 51 of this Decree.

Article 42. PIT exemption for individuals in the high-tech workforce

1. PIT shall be exempt for 05 years on income from salaries and remunerations of individuals in the high-tech workforce in the following cases:

a) Income from research and development of high technologies on the List of high technologies prioritized for development and List of hi-tech products encouraged for development under regulations of law on high technologies;

b) Income from research and development of strategic technologies on the List of strategic technologies and products thereof under regulations of law on high technologies.

2. The determination of individuals in the hi-tech workforce engaged in research and development of high technologies or strategic technologies on the List of Prioritized High Technologies or the List of Strategic Technologies and Strategic Technology Products under regulations of law on high technologies. Some specific cases:

a) The determination of individuals in the high-tech workforce under Clause 1 of this Article shall comply with Article 13 of the Law on High Technologies and its guiding documents;

b) The determination of research and development of high technologies or strategic technologies on the List of Prioritized High Technologies or the List of Strategic Technologies and Strategic Technology Products shall comply with Article 11 and Article 12 of the Law on High Technologies and its guiding documents.

3. PIT exemption period shall be a continuous period of time beginning from the month in which the tax-exempt income is earned. If income is earned during the month, the full month will also be included in the PIT exemption period.

4. In cases where an individual has both tax-exempt income under Clause 1 of this Article and other income from salaries and remunerations, the PIT amount exempted shall be determined as follows:

5. PIT deduction and settlement shall comply with Article 50 and Article 51 of this Decree.

Article 43. PIT exemption for transfer of open-ended fund certificates

1. PIT is exempt for income from transfer of fund certificates of open-ended funds established under securities laws if they are held for at least 02 years from the date of purchase.

2. From July 01, 2026, individuals selling open-ended fund certificates purchased before July 01, 2026 shall be exempt from PIT if such fund certificates have been held for at least 02 years from the date of purchase.

3. In cases where an individual transfers fund certificates purchased at different times, the 2-year period mentioned in Clause 1 and Clause 2 of this Article shall be determined according to the First In, First Out (FIFO) principle.

Article 44. Reduction of PIT on dividends distributed to investors securities investment funds and real estate investment funds

50% PIT reduction shall be granted to dividends distributed to individual investors (retail investors) by securities investment funds and real estate investment funds established under the Law on Securities for 05 years from July 01, 2026 to the end of June 30, 2031.

Chapter IV

BASIS FOR CALCULATION OF PERSONAL INCOME TAX PAYABLE BY RESIDENT INDIVIDUALS

Section 1. INCOME FROM BUSINESS OPERATIONS

Article 45. PIT on income from business operations

1. Resident individuals engaged in production and business activities (hereinafter referred to as “business operations”) shall pay tax in accordance with Article 7 of the Law on Personal Income Tax, Decree No. 68/2026/ND-CP on tax policy and tax administration for household businesses and individual businesses, and amendments thereof.

2. Business line-specific tax rates on assessable revenue under Clause 3 Article 7 of the Law on Personal Income Tax are provided in the Appendix of this Decree.

Section 2. INCOME FROM SALARIES AND REMUNERATIONS

Article 46. PIT on income from salaries and remunerations

1. PIT on income from salaries and remunerations of resident individuals shall be determined by multiplying the assessable income prescribed in Clause 2 of this Article, regardless of the location of payment and receipt, by the progressive PIT rate prescribed in Article 9 of the Law on Personal Income Tax. The tax amount for each bracket is calculated by multiplying the assessable income portion of that bracket by the corresponding tax rate.

2. Assessable income from salaries and remunerations equals (=) the total taxable income prescribed in Article 8 of this Decree received by the taxpayer in the tax period minus (-) the following amounts:

a) Social insurance, health insurance, unemployment insurance, professional liability insurance contributions for certain occupations subject to compulsory insurance, voluntary social insurance contributions under the Law on Social Insurance, voluntary health insurance contributions under the Law on Health Insurance, supplemental retirement insurance contributions under the Law on Social Insurance, purchase of voluntary retirement insurance, and life insurance.

The total deductible amounts of supplemental retirement insurance contributions under the Law on Social Insurance, purchase of voluntary retirement insurance and life insurance shall not exceed 03 million VND per month, including amounts paid by the employer for the employee and amounts paid by the employee themselves (if any).

If a resident individual in Vietnam earns salaries or remunerations abroad and has paid compulsory insurance contributions under the law of the foreign country where the insurance is paid (such as social insurance, health insurance, unemployment insurance, professional liability insurance), those contributions may be deducted from taxable income when determining assessable income from salaries and remunerations.

Social insurance, health insurance, unemployment insurance, professional liability insurance contributions for certain occupations subject to compulsory insurance, voluntary social insurance contributions under the Law on Social Insurance made in a year shall be deducted from taxable income earned in that same year.

The basis for determining deductible income is photocopies of proofs of payment issued by the insurer, supplemental retirement insurance fund, and confirmation from the income-paying organization regarding the insurance amounts deducted or paid (if it is paid by the income-paying organization on behalf of the employee);

b) Family circumstance-based deductions under Article 10 of the Law on Personal Income Tax and Article 47 of this Decree;

c) Deductions for charitable and humanitarian contributions, and other deductions under Article 11 of the Law on Personal Income Tax and Article 49 of this Decree.

3. The time for determination of assessable income from salaries and remunerations shall be the time the income is paid by the employer to the taxpayer or the time the taxpayer receives the income, including monetary or non-monetary benefits, allowances and other income prescribed in Article 8 of this Decree received during the tax period.

4. In cases where the salary or remuneration paid by the employer is exclusive of PIT, PIT-exclusive income shall be converted into assessable income as follows:

a) The income used as the basis for conversion into assessable income is the actual income received plus (+) any benefits paid by the employer on behalf of the employee minus (-) deductions. In cases where the employer applies “assumed tax” or “assumed housing expense” policies, the income used as the basis for conversion into assessable income does not include “assumed tax” or “assumed housing expense.” If the benefits paid on behalf of the employee include house rent, the actual house rent may be included in the income used for conversion but not exceeding 15% of the total taxable income paid by the employer, regardless of the place of payment (excluding house rent, actual payments for electricity, water, accompanying services, and “assumed housing expense” (if any));

b) Formula for calculation of income as the basis for conversion:

Where:

Actual income is PIT-exclusive salaries and remunerations received by the employee every month, excluding amounts not included in taxable income under Article 8 of this Decree and tax-exempt income under Section 1 Chapter III of this Decree.

Amounts paid on behalf of the employee are monetary or non-monetary benefits paid by the employer on behalf of the employee in accordance with this Decree.

Deductions include: family circumstance-based deductions; deductible social insurance, health insurance, unemployment insurance, professional liability insurance contributions for certain occupations subject to compulsory insurance, voluntary social insurance contributions under the Law on Social Insurance, voluntary health insurance contributions under the Law on Health Insurance, supplemental retirement insurance contributions under the Law on Social Insurance, purchase of voluntary retirement insurance and life insurance not exceeding the limits prescribed in Point a Clause 2 of this Article; deductible charitable and humanitarian contributions, and other deductions under Article 49 of this Decree.

c) For individuals who have to settle PIT themselves as per regulations, the taxable income in the year shall be the total taxable income of each month determined on the basis of converted taxable income. In cases where an individual earns PIT-exclusive income from multiple income-paying organizations, his/her taxable income in the year shall be the total taxable income of each month paid by all of the income-paying organizations in the year.

Article 47. Family circumstance-based deductions

1. Resident individuals may deduct family circumstance-based deductions from their taxable income from salaries and remuneration prescribed in Clause 1 Article 10 of the Law on Personal Income Tax, including:

a) Personal deduction under Point a Clause 1 Article 10 of the Law on Personal Income Tax;

b) Dependant deduction under Point b Clause 1 Article 10 of the Law on Personal Income Tax.

2. Eligibility and determination of dependants to whom the taxpayer has a financial support obligation:

a) Children (including biological children, adopted children under the law, stepchildren of the taxpayer’s spouse) under 18 years old;

b) Children (including biological children, adopted children under the law, stepchildren of the taxpayer’s spouse) aged 18 or older but are legally incapacitated persons, disabled or unable;

c) Children (including biological children, adopted children under the law, stepchildren of the taxpayer’s spouse) who are studying at universities, colleges, professional secondary schools, or vocational schools, including children aged 18 or older who are still undergoing general education (including the period awaiting exam results from June to September of grade 12), with no income or with average monthly income in the year from all sources not exceeding the threshold stipulated by the Minister of Finance;

d) The taxpayer’s spouse, biological parents, step-parents, adoptive parents under the law, parents-in-law;

dd) Other individuals who are without support from family and financially dependent on the taxpayer, including taxpayer’s siblings; paternal and maternal grandparents; aunts, uncles; nieces and nephews; and other persons who financially depend on the taxpayer (persons whom the taxpayer has the obligation to directly care for) under the law.

Dependants under this point are individuals living with the taxpayer and whom the taxpayer has the obligation to care for under Articles 104, 105, and 106 of the Law on Marriage and Family, and other relevant laws.

3. An individual must satisfy the following requirements to be considered a dependant under Point d and Point dd Clause 2 of this Article:

a) For individuals of working age, they must simultaneously meet the following conditions: being unable to work, having no income or having an average monthly income in the year from all sources not exceeding the threshold stipulated by the Minister of Finance;

b) For individuals outside working age, they must have no income, or have an average monthly income in the year from all sources not exceeding the threshold stipulated by the Minister of Finance.

4. Persons unable to work under this Article are those with work capacity reduction of 81% or more, as determined under the law.

5. Taxpayers shall register the number of dependants with lawful documents and bear legal responsibility for the accuracy of the registration and the dependents’ income.

6. Documentation for determination of eligible dependants.

Article 48. Rules for claiming family circumstance-based deductions

1. Personal deductions

a) If the taxpayer has multiple sources of income from salaries and remunerations, the taxpayer, at any given time, may choose to claim personal deductions at one income-paying entity (determined in whole months);

b) If, during the tax year, the individual has not claimed personal deductions or has claimed personal deductions for less than 12 months, personal deductions may be applied for 12 months when settling tax as per regulations;

c) Foreigners who are resident individuals in Vietnam may claim personal deductions from January, or from the month they arrive in Vietnam (in the case of first-time presence) to the month in which their employment contracts end and they leave Vietnam in the tax year (determined in whole months).

2. Dependent deductions

a) The taxpayer may claim dependent deductions if the taxpayer has applied for taxpayer registration and dependant registration. The deadline for submission of the dependant registration and supporting documents is December 31 of the tax year, and remains unchanged for subsequent years if there are not changes.

If the taxpayer has not claimed any dependent deduction in the tax year, it may be claimed from the month in which the support obligation arises;

b) When the taxpayer claims dependant deductions, they will be provisionally applied in the year starting from the month of registration (determined in whole months).

If multiple taxpayers share responsibility for the same dependent, only one of them may claim such dependant in the tax year. Any change afterwards will apply in the next tax year;

c) In cases where a taxpayer has multiple sources of income from salaries and remunerations, the taxpayer may claim dependants at one of these sources, provided each dependant is only claimed once by one taxpayer in the tax year.

Article 49. Deductions for charitable and humanitarian contributions, and other deductions

1. Resident individuals may deduct the following charitable and humanitarian contributions from taxable income before calculating PIT on income from their salaries and remunerations:

a) Contributions to organizations and establishments providing care for extremely disadvantaged children, disabled people, elderly persons without support from family;

b) Contributions to charitable funds, humanitarian funds, or education promotion funds;

c) Contributions to organizations that are licensed to appeal for donations, established and operating under the law.

The organizations, establishments and funds specified in this Clause must be permitted for establishment by competent authorities or recognized by competent authorities, operate for charitable, humanitarian, or education promotion purposes, and not for profit.

Documentation for determining contributions under this Clause is photocopies of receipt documents of the receiving organizations and establishments, or proofs of cashless payment via credit institutions.

2. Taxpayers who are resident individuals may deduct the expenditures on healthcare, education – training of taxpayers and their dependants from taxable income before PIT calculation at the levels prescribed by the Government of Vietnam. Such expenditures include:

a) Expenditures on medical examination and treatment not exceeding 23 million VND per year at domestic health facilities within the coverage of health insurance;

b) Expenditures on education and training at domestic educational institutions not exceeding 24 million VND per year, including: tuition fees for preschool, general education, vocational education, and higher education as stipulated by education and training laws, as well as other professional skills training at education and training institutions.

3. To be deductible, the expenditures under Clause 2 of this Article must satisfy the following conditions:

a) They are supported by invoices and proofs of payment as prescribed by law; medical expenses must be supported by medical cost statements of health facilities under regulations of the Minister of Health;

b) They are supported by invoices and proofs of payment that contain information about the taxpayer or the taxpayer’s dependant;

c) They are not covered by other sources, including donations, support, authorized payment by other organizations and individuals, state budget, social insurance, health insurance or other form of insurance.

4. In cases where PIT reductions are applied to medical expenses under Article 40 of this Decree, or where medical, education, training expenses arise under Points b, g, and i, Clause 4, Article 8 of this Decree, such expenses shall not be deductible under Clause 2 of this Article.

5. Charitable and humanitarian contributions, and other deductions arising in a year may only be deducted from taxable income of that same year, and cannot be carried forward to the following tax year. If an individual has settled tax but lacks invoices or proofs of payment to substantiate medical, education and training expenses as prescribed in Clause 3 of this Article, tax obligations shall be adjusted in accordance with tax administration laws.

Article 50. Tax withholding

1. Except for the cases specified in Clauses 2 and 3 of this Article, the organizations or individuals paying income to taxpayers must withhold tax and transfer the withheld tax to state budget based on:

a) Monthly assessable income (regarding income paid by the employer on behalf of the employee);

b) The progressive tax brackets prescribed in Article 9 of the Law on Personal Income Tax.

2. Organizations or individuals paying salaries, remunerations, or other amounts to resident individuals who do not sign employment contracts or sign employment contracts with duration of less than 03 months (including cases where salaries or other income are paid to employees after termination of their employment contracts) must withhold 10% PIT before paying the income to the individual if the income payment is 05 million VND or more per instance. For income payments below 05 million VND, the income payer may withhold 10% PIT when requested by the income earner.

If an individual’s income is subject to PIT withholding at the aforementioned rate but the estimated total taxable income of the individual after family circumstance-based deductions is below the threshold subject to PIT, the income earner submit a written commitment (using the provided set form) to the income earner as the basis for not withholding PIT. The individual making the commitment shall be held responsible for its accuracy, and face consequences if any fraud is discovered in accordance with tax administration laws and other relevant laws.

On the basis of the individual’s commitment, the income payer shall not withhold PIT. At the end of the tax year, the income payer must still compile a list of individuals whose income is below the PIT withholding threshold using the provided set form, and submit it to the tax authority.

For resident individuals signing employment contracts with duration of 3 months or longer, the income payer must withhold PIT according to the progressive tax brackets mentioned in Clause 1 of this Article, even if the individual signs employment contracts of 3 months or more at multiple places.

3. Some specific cases:

a) If employees are rewarded with shares (performance shares) or purchase shares at preferential prices under an employee stock ownership plan (ESOP), the value of such shares does not have to be immediately included in income from salaries or remunerations at the time of receiving shares. Upon receipt of income from transferring such shares, the individual must pay PIT on income from salaries or remunerations, and also pay PIT on income from securities transfer under Article 54 of this Decree. For transfer of shares of the same type, PIT on income from salaries or remunerations must be paid until all of the rewarded shares (performance shares) or ESOP shares are transferred.

The basis for determination of taxable income from rewarded shares under this Point is the total amount paid to the employee according to the income payer’s accounting records at the time of reward. If this cannot be determined, taxable income shall be calculated by multiplying the number of shares received by par value; if the transfer price is lower than par value, PIT shall be is calculated according to market price at the time of transfer.

The basis for determination of taxable income from ESOP shares under this Point is the total amount paid to the employee according to the income payer’s accounting records at the time of issuance. If this cannot be determined, taxable income shall be calculated by multiplying the number of shares received by par value minus (-) the amount paid by the employee to purchase the ESOP shares. If the difference is a negative number, the employee is not required to pay PIT on income from such ESOP shares.

Individuals receiving rewarded shares or ESOP shares must declare their origin and actual value when depositing such shares at securities companies or commercial banks where their depository accounts are opened. These securities companies or commercial banks must separately monitor the individuals’ bonus shares or ESOP shares and withhold 10% PIT on taxable income from such shares, then transfer the withheld PIT amount to state budget. Individuals must include income from bonus shares and ESOP shares in their taxable income from salaries and remunerations for annual tax settlement.

b) In cases where the employer purchases life insurance (except supplemental retirement insurance and voluntary retirement insurance), other voluntary insurance with accumulation value from insurers established and operating under the law of Vietnam for employees, the employees are not required to immediately include it in their taxable income from salaries and remunerations upon insurance purchase. Upon maturity of the insurance policy, the insurer must withhold 10% PIT on the portion of accumulation value contributed by the employer for the employee from July 01, 2013. For life insurance premiums paid from January 01, 2026, accumulation value shall be calculated on the portion exceeding the threshold prescribed in Point a Clause 2 Article 46 of this Decree. If the accumulation value is paid multiple times, PIT shall be withheld at the rate of 10% of each payment. Individuals are not required to settle PIT on such income.

Employers must determine the portion of value of life insurance premiums accumulated from January 1, 2026 exceeding the threshold prescribed in Point a Clause 2 Article 46 of this Decree under Point a, Clause 2, Article 46 of this Decree and inform the insurers. If an employee also participates in supplementary retirement insurance under the Law on Social Insurance, voluntary retirement insurance, and life insurance, the maximum deductible amount of 03 million VND/month shall be applied to the total contributions. The employer shall allocate this maximum deductible amount among the types of insurance according to the employee’s choice.

Insurers shall separately monitor the portion of premiums of life insurance and other voluntary insurance purchased or contributed by employers for their employees as the basis for PIT calculation.

In cases where the employer purchases life insurance (except supplemental retirement insurance and voluntary retirement insurance), other voluntary insurance with accumulation value from insurers that are not established and operating under the law of Vietnam for employees, the employer shall withhold PIT at the rate of 10% of the insurance premiums paid or contributed exceeding the threshold prescribed in Point a Clause 2 Article 46 of this Decree before paying the employees. Individuals are not required to settle PIT on such income.

c) For foreign individuals working in Vietnam, the income payers (including cases where the Vietnamese party reimburses the foreign party for salary/remuneration expenses) must withhold PIT according to the progressive tax brackets, the individuals’ working period in Vietnam stated in their contracts or assignment letters (for individuals working in Vietnam for at least 183 days in the tax year) or under Article 64 of this Decree (for individuals working in Vietnam for fewer than 183 days in the tax year). Foreign resident individuals whose contracts end before leaving Vietnam must settle tax with the tax authority or authorize another organization/individual to settle tax, and be held responsible for their PIT obligations.

Article 51. Tax settlement

1. Income payers, resident individuals earning income from salaries and remunerations have the responsibility to settle tax annually, unless:

a) The PIT amount payable is smaller than the PIT paid in the tax period, and the individual does not claim a tax refund or wish to have the PIT overpayment offset against PIT payable in the next period.

b) The individual earns income from other sources and the average monthly income from these other sources in the year does not exceed 15 million VND and 10% PIT on which has been deducted by the income payers under Clause 2 Article 50 of this Article. The individual is not required to settle PIT on this portion of income.

If the individual wishes to settle tax directly with the tax authority, the Tax Administration Information System can assist by providing a list of all sources of income from salaries and remunerations in the tax year, and PIT withheld by income payers in the tax year.

2. Except for the cases prescribed in Clause 3 of this Article, the taxpayer may authorize the income payer to settle tax in the following cases, even if the taxpayer has worked for less than 12 months in the year:

a) The individual has only one source of income from salaries and remunerations under an employment contract of 03 months or more at an organization, and is still working for such organization at the time of tax settlement, including cases where the individual is transferred from an old organization to a new one due to merger, consolidation, full division, partial division, business conversion of the old organization, or between the old organization and the new organization of the same system;

b) The individual has only one source of income from salaries and remunerations under an employment contract of 03 months or more at an organization, and is still working for such organization at the time of tax settlement, and has other sources of income on which PIT has been deducted as prescribed in Point b Clause 1 of this Article.

3. In cases where, during the tax period, an individual requests tax reduction due to natural disasters, epidemics, fires, accidents, or serious illnesses as prescribed in Article 40 of this Decree, or where deductions arise as prescribed in Article 49 of this Decree and the taxpayer wishes to apply such deductions to income before tax, the taxpayer must settle tax themselves.

4. Documentation and procedures for tax settlement and authorization of tax settlement shall comply with tax administration laws.

Section 3. INCOME FROM CAPITAL INVESTMENT AND CAPITAL TRANSFER

Article 52. PIT on income from capital investment

1. PIT on capital investment of resident individuals shall be determined by multiplying the assessable income by the tax rate of 5%.

2. Assessable income from capital investment is the total taxable income from capital investment received by the taxpayer in each instance a prescribed in Article 9 of this Decree.

3. The time for determination of assessable income from capital investment is the time the income is paid by the income payer to the taxpayer, except for the cases prescribed in Clauses 4, 5 and 6 of this Article.

4. Individuals receiving dividends in the form of shares, existing shareholders receiving shares issued from equity (bonus shares) are not required to pay PIT on income from capital investment at the time of receiving the shares. When transferring these shares, the individual must pay PIT on income from capital investment on which tax was paid at the time of receiving them, and must also pay PIT on income from securities transfer as prescribed. If shares of the same type are transferred, PIT on income from capital investment must be paid until all of these shares have been transferred.

Assessable income on income from capital investment when individuals receive dividends in the form of shares, or when existing shareholders receiving shares issued from equity, shall be the book value of dividends or the quantity of shares received multiplied by (x) their par value. If the value of transferred shares is lower than par value at the time of transfer, PIT on income from capital investment shall be calculated at market price at the time of transfer.

5. For reinvested profits, individuals are not required to pay PIT on income from capital investment at the time of reinvestment. When transferring capital, withdrawing capital, or dissolving the enterprise, individuals must pay PIT on income from capital investment, including the portion of reinvested profits on which PIT was not paid at the time of reinvestment, and must also pay PIT on income from capital transfer as per regulations.

Individuals transferring capital or withdrawing part of their contributed capital must pay PIT on income from capital investment until the value of transferred or withdrawn capital equals the value of reinvested profit.

6. In cases where an individual earns income from investing capital abroad in any form, the time for determination of assessable income shall be the time of receipt of such income.

Article 53. PIT on income from capital transfer

1. PIT on income from capital transfer of resident individuals under Clause 1 Article 10 of this Decree shall be determined by multiplying the assessable income by the tax rate of 20% each time a transfer is conducted. Assessable income from capital transfer equals (=) the transfer price minus (-) the buying price and reasonable expenses related to the generation of income from capital transfer.

If the buying price and expenses related to the capital transfer cannot be determined, PIT shall be determined by multiplying the transfer price by the tax rate of 2%.

2. The transfer price mentioned in Clause 1 of this Article is the amount received by the individual under the capital transfer contract.

Some specific cases:

a) If the capital transfer contract stipulates payment by instalments or deferred payment, the transfer price does not include installment interest or deferral interest specified in the contract. Such installment interest or deferral interest is subject to PIT on income from capital investment;

b) If the capital transfer contract does not specify a transfer price or the tax authority has grounds to determine that the price is inconsistent with market prices, the tax authority has the right to inspect and determine the transfer price in accordance with tax administration laws.

3. The buying price for transferred capital mentioned in Clause 1 of this Article is the value of the contributed capital at the time of transfer, equaling the total value of the initial capital contribution and any subsequent contributions or purchases.

Some specific cases:

a) In case of contributed capital, the buying price is the cumulative value of the contributed capital up to the time of transfer on the basis of accounting records, invoices, and documents;

b) In case of purchased stakes, the buying price is the capital value at the time of transfer purchase, determined according to the contract for stakes purchase and payment documents.

4. Reasonable expenses related to generating income from capital transfer are actual expenses supported by with lawful invoices and documents, including:

a) Costs of necessary legal procedures related to the transfer;

b) Fees and charges paid to state budget as prescribed by law;

c) Other expenses with proofs of payment.

In cases where transfer expenses are incurred abroad, the original documents must be certified by a notary or independent audit firm in the country where the expenses are incurred, be translated into Vietnamese.

5. The time for determination of assessable income shall be the time of completion of the transaction as prescribed by law or when procedures for changing the list of capital contributors are initiated, except the cases prescribed in Clause 6 of this Article.

6. Individuals contributing capital in the form of stakes are not required to pay PIT on income from capital transfer at the time of contribution. When transferring capital, withdrawing capital, or dissolving the enterprise, these individuals must pay PIT on income from transfer of the portion of stakes on which PIT was not paid at the time of contribution, and also pay PIT on income from capital transfer or capital investment as per regulations (in cases of capital withdrawal or enterprise dissolution).

Assessable income from transfer of stakes is the value of stakes specified in the capital contribution contract at the time of contribution. Individuals transferring or withdrawing part of their stakes capital must pay PIT on income from capital transfer until the transferred or withdrawn value equals the value of the initial stakes.

Article 54. PIT on income from securities transfer

1. PIT on income from securities transfer under Clause 2 Article 10 of this Decree shall be determined by multiplying the transfer price by the tax rate of 0,1% each time a transfer is conducted.

2. Transfer price shall be determined as follows:

a) For listed securities or securities registered for trading at the Stock Exchange, it is the actual selling price (matching price or negotiated price) announced by the Stock Exchange;

b) For securities other than those prescribed in Point a of this Clause, it is the price stated in the transfer contract, the actual transfer price, or the price specified in accounting records of the unit having the transferred securities at the time of the most recent financial statement prepared in accordance with accounting laws before the transfer.

3. The time for determination of assessable income is the time of completion of the transaction as prescribed by law, except for the cases specified in Clause 4 of this Article. To be specific:

a) For listed securities or securities registered for trading at the Stock Exchange, it is the time when income is earned by the taxpayer from securities transfer;

b) For securities of public companies not traded on the Stock Exchange and transferred only through the ownership transfer system of the Vietnam Securities Depository and Clearing Corporation (VSDC), it is the time of ownership transfer at VSDC;

c) For securities other than those above, it is the effective date of the securities transfer contract.

4. Individuals contributing capital in the form of shares are not required to declare and pay PIT on income from securities transfer at the time of contribution. When transferring capital, withdrawing capital, or dissolving the enterprise, these individuals must pay PIT on income from transfer of the contributed securities, and also pay PIT on income from capital transfer or capital investment as per regulations (in cases of capital withdrawal or enterprise dissolution).

Assessable income from securities transfer at the time of contribution is the value of securities specified in the capital contribution contract at the time of contribution. Individuals transferring or withdrawing part of their contributed capital must pay PIT on income from securities transfer until the transferred or withdrawn value equals the value of the contributed securities.

5. The determination of income from transfer of derivative securities shall comply with securities laws and other relevant laws. The Minister of Finance shall promulgate regulations on PIT on transfer of derivative securities.

Article 55. Withholding tax, declaring and paying tax on behalf of individuals on income from capital investment

1. Organizations and individuals paying income from capital investment under Article 52 shall deduct PIT before paying the income to individuals, except for the cases specified in Clause 2 of this Article.

2. When individuals receiving dividends in the form of shares, existing shareholders receiving shares issued from equity under Clause 4 Article 52 of this Decree transfer securities of the same type, the organizations prescribed in Clause 4 of this Article shall declare and pay PIT on income from capital investment on their behalf. If the organization is dissolved before declaring and paying PIT on the individuals’ behalf, the individuals shall declare and pay PIT as per regulations.

3. In cases where an individual increases investment in an organization, such organization shall declare and pay PIT on behalf of the individual when the individual transfers or withdraws capital, or when the enterprise is dissolved. If the organization is dissolved before declaring and paying PIT on the individuals’ behalf, the individuals shall declare and pay PIT as per regulations.

4. Determination of organizations declaring and paying PIT on behalf of individuals under Clause 2 of this Article:

a) For securities traded through the trading system of the Stock Exchange: securities companies, commercial banks where individuals open their depository accounts, fund management companies managing individuals’ investment portfolios;

b) For securities not traded through the trading system of the Stock Exchange:
– For securities of public companies registered at VSDC: securities companies or commercial banks where individuals open their depository accounts;
– For securities of joint stock companies that are not public companies and authorize securities companies to manage their lists of shareholders: the authorized securities companies;
– For securities other than those specified in this Point: the issuing organizations.

5. Documentation and procedures for withholding tax, declaring and paying tax on behalf of individuals shall comply with tax administration laws.

Article 56. Withholding tax, declaring and paying tax on behalf of individuals on income from capital transfer and securities transfer

1. Individuals earning income from capital transfer under Article 53 of this Decree shall declare and pay PIT as per regulations, except for the cases specified in Clause 5 of this Article.

2. For income from securities transfer under Article 54 of this Decree, the organizations prescribed in Clause 4 of this Article shall withhold PIT at the rate of 0,1% of the transfer price, and pay the withheld PIT to state budget.

3. In cases where an individual contributes capital in the form of stakes or shares to an organization, such organization shall declare and pay PIT on capital transfer or securities transfer on behalf of the individual when the individual transfers or withdraws capital, or when the enterprise is dissolved. If the organization is dissolved before declaring and paying PIT on the individuals’ behalf, the individuals shall declare and pay PIT as per regulations.

4. Tax-withholding organizations

a) For securities traded through the trading system of the Stock Exchange: tax-withholding organizations shall be securities companies, commercial banks where individuals open their depository accounts, fund management companies managing individuals’ investment portfolios;

b) For securities not traded through the trading system of the Stock Exchange:
– For securities of public companies registered at VSDC: tax-withholding organizations shall be securities companies or commercial banks where individuals open their depository accounts;
– For securities of joint stock companies that are not public companies and authorize securities companies to manage their lists of shareholders: tax-withholding organizations shall be the authorized securities companies;
– For securities other than those specified in this Point: individuals transferring securities shall declare tax directly with tax authorities.

5. Individuals must fulfill tax obligations for the transferred capital before carrying out procedures for changing the list of capital contributors or shareholders at the enterprise where the individuals transfer capital. If the enterprise carries out procedures for changing the list of capital contributors or shareholders before the individuals fulfills their tax obligations upon capital transfer, the enterprise where the individual transfers capital shall declare and pay tax on behalf of such individuals.

6. Documentation and procedures for withholding tax, declaring and paying tax on behalf of individuals shall comply with tax administration laws.

Section 4. INCOME FROM REAL ESTATE TRANSFER, WINNINGS, ROYALTIES, FRANCHISING, INHERITANCE, GIFTS, AND OTHER INCOME

Article 57. PIT on income from real estate transfer

1. PIT on income from real estate transfer of resident individuals shall be determined by multiplying the transfer price by the tax rate of 2%. The transfer price shall be the price written on the transfer contract at the time of transfer.

2. For transfers of real estate being land use rights (LUR) where the contract does not state the land price or the land price in the contract is lower than the price calculated according to the land price list and land price adjustment coefficient (if any) under land laws at the time of determining assessable income, the land transfer price shall be the land price calculated according to the land price list and land price adjustment coefficient (if any) under land laws.

3. In case of transfer of LUR and assets affixed to land (including houses, infrastructure, and architectural works) where the contract does not state the land price or asset value, or the land price in the contract is lower than the price calculated according to the land price list and land price adjustment coefficient (if any) under land laws, the value of assets affixed to land is lower than the value on which registration fee is imposed as prescribed by the People’s Committee of the province or city at the time of determining assessable income:

a) If the contract does not state the land price or the land price in the contract is lower than the price calculated according to the land price list and land price adjustment coefficient (if any) under land laws, the LUR value shall be determined in accordance with Clause 2 of this Article;

b) The value of assets affixed to land shall be the value on which registration fee is imposed as prescribed by the People’s Committee of the province or city. If the People’s Committee of the province or city does not set a value on which registration fee is imposed, regulations of the Ministry of Construction on house classification, construction standards, basic construction norms, and the actual remaining value of the works on land shall apply.

For off-the plan construction works, the value shall be determined according to the ratio of capital contribution ratio to total contract value multiplied by (x) the value on which registration fee is imposed set by the People’s Committee of the province or city. If no unit price is set by the People’s Committee of the province or city, the construction investment capital rate published by the Ministry of Construction at the time of tax declaration submission shall apply.

4. In case of sub-leasing where the sub-lease price in the contract is lower than the land rent per m2 multiplied by (x) the land price on the land price list published by the People’s Committee of the province or city multiplied by (x) land price adjustment coefficient (if any) under land laws at the time of sub-leasing, the sub-lease price shall be determined according to the land price on the land price list published by the People’s Committee of the province or city and land price adjustment coefficient (if any).

5. The time for determination of assessable income from real estate transfer:

a) If the transfer contract does not stipulate that the buyer pays tax on behalf of the seller, the assessable income shall be determined when the transfer contract takes effect as prescribed by law;

b) If the transfer contract stipulates that the buyer pays tax on behalf of the seller, the assessable income shall be determined when registering ownership or use rights of the real estate;

c) In cases where an individual transfers off-the-plan housing or LUR affixed to an off-the-plan structure, the assessable income shall be determined when the individual submits the tax declaration dossier to the tax authority.

d) Individuals contributing capital in the form of real estate are not required to pay PIT on income from real estate transfer at the time of contribution. When transferring capital, withdrawing capital, or dissolving the enterprise, the organization to which capital is contributed shall declare and pay PIT on income from real estate transfer on behalf of the contributing individuals; the individuals shall pay PIT on income form capital transfer or capital investment (in case of capital withdrawal or enterprise dissolution).

Assessable income from real estate transfer at the time of contribution is the value of contributed capital specified in the capital contribution contract at the time of contribution. Individuals transferring or withdrawing part of their contributed capital must pay PIT on income from real estate transfer until the transferred or withdrawn value equals the value of the contributed real estate.

In cases where the organization to which capital is contributed is dissolved or bankrupt before declaring and paying PIT on the individuals’ behalf, the individuals shall declare and pay PIT as per regulations.

6. Some specific cases:

a) For transfer of co-owned real estate, tax obligations shall be determined separately for each co-owner according to their ownership ratio. The ownership ratio shall be determined according to legal documents such as: initial capital contribution agreements, wills, court decisions, or other lawful documents. If no legal documents exist, tax obligations shall be divided equally among co-owners. Co-owners may authorize one individual to represent them in paying PIT on income from real estate transfer;

b) In case of authorization where the authorized party has full rights equivalent to ownership of the real estate under civil laws, the taxpayer shall be the authorizing individual.

In case of authorization where the authorized party only receives remuneration and does not have full ownership of the real estate under civil laws, PIT shall be paid in accordance with Article 8 of this Decree.

If individuals with LUR or house ownership used as collateral for obligations at credit institutions or foreign bank branches cannot repay debts at maturity, the credit institution or foreign bank branch handling the collateral must declare and pay tax on behalf of the individual before settling the debts;

d) In cases where an individual mortgages his/her LUR or house ownership, and then transfers all or part of the real estate to settle debts, PIT must be declared and paid by the individual, or by the organization/individual handling the transfer on behalf of the individual, before settling the debts;

dd) In cases where real estate is transferred by an individual to another organization or individual under a judgment enforcement decision, PIT must be declared and paid by the transferring individual, or by the auctioneer on behalf of the individual. For real estate confiscated and auctioned by competent state authorities with proceeds transferred to state budget, PIT declaration and payment are not required;

e) For house or land exchanged between individuals other than agricultural land for production exempted from PIT tax under Article 23 of this Decree, the individuals must declare and pay PIT.

Article 58. PIT on income from winnings

1. PIT on income from winnings of resident individuals shall be determined by multiplying the assessable income by the tax rate of 10%.

2. Assessable income from winnings is the portion of the prize value exceeding 20 million VND received by the taxpayer per winning instance, regardless of the number of times they receive the inning.

3. Time for determination of assessable income

The time for determination of assessable income from winnings is the time the income is paid by the income payer to the winner.

4. Some specific cases:

a) If one prize is won by multiple people, assessable income is divided among the winners. Winners must present legal evidence. If no legal evidence is provided, the prize will be considered income of one individual. If an individual wins multiple prizes in one game, assessable income will be the total prize value;

b) For lottery winnings, assessable income is the total prize value exceeding 20 million VND per ticket in one draw;

c) For promotional winnings in kind, assessable income is the product value exceeding 20 million VND, converted into cash at market value at the time of receipt;

d) For winnings from betting, assessable income is the prize value exceeding 20 million VND received by the participant.

Article 59. PIT on income from royalties

1. PIT on income from royalties of resident individuals shall be determined by multiplying the assessable income by the tax rate of 5%.

2. Assessable income from royalties is the portion of income exceeding 20 million VND received by the taxpayer per contract, regardless of the number of payments or installments. If the same subject matter of intellectual property rights or technology transfer is divided into multiple transfer or licensing contracts with the same user, assessable income is the portion exceeding 20 million VND calculated on the total value of all contracts.

If the transferred or licensed subject patter is jointly owned, assessable income shall be divided among the co-owners. The ownership ration shall be based on ownership or use right certificates or issued by competent authorities.

3. Time for determination of assessable income

The time for determination of assessable income from royalties is the time the income is paid by the income payer to the taxpayer.

Article 60. PIT on income from franchising

1. PIT on income from franchising of resident individuals shall be determined by multiplying the assessable income by the tax rate of 10%.

2. Assessable income from franchising is the portion of income exceeding 20 million VND received by the taxpayer per contract, regardless of the number of payments or installments. If the same subject matter of franchising is divided into multiple contracts with the same user, assessable income is the portion exceeding 20 million VND calculated on the total value of all contracts.

If multiple individuals participate in franchising under the Law on Commerce, one individual shall be authorized to represent the group as the taxpayer.

3. Time for determination of assessable income

The time of determination of assessable income from franchising is the time the income is paid by the income payer to the taxpayer.

Article 61. PIT on income from receipt of inheritance or gifts

1. PIT on income from receipt of inheritance or gifts of resident individuals shall be determined by multiplying the assessable income by the tax rate of 10%.

2. Assessable income from receipt of inheritance and gifts is the portion of the value of the inheritance or gift exceeding 20 million VND received by the taxpayer in each instance. The determination of assessable income from the inherited or gifted assets must be consistent with market prices of the same or similar products at the time the income is earned.

3. Time for determination of assessable income

a) For income from inheritance and gifts: the time the organization or individual gives the gift to the taxpayer, or the time the taxpayer receives the inheritance or gifts;

b) For income from inheritance and gifts subject to registration of ownership or use rights: the time of registration of ownership or use rights of the inherited or gifted assets;

4. Some specific cases:

a) For inherited or gifted securities, assessable income shall be determined at the time of registering ownership or submitting the tax declaration dossier to the tax authority. To be specific:

For listed securities or securities registered for trading at the Stock Exchange, the value of securities shall be their reference price displayed on the Stock Exchange.

b) For other securities, their value shall be the book value specified in the issuing company’s most recent financial statement under accounting laws.

b) For inherited or gifted stakes in business organizations, assessable income shall be the book value at the most recent time before registering ownership of stakes.

c) Determination of assessable income from inherited or gifted real estate:

Land value shall be determined according to the land price list and land price adjustment coefficient (if any) under land laws at the time of registration of ownership or use rights of real estate.

The value of assets affixed to land shall be the value on which registration fee is imposed as prescribed by the People’s Committee of the province or city at the time of registration of ownership or use rights of real estate. If the People’s Committee of the province or city does not set a value on which registration fee is imposed, regulations of the Ministry of Construction on house classification, construction standards, basic construction norms, and the actual remaining value of the works on land shall apply.

d) For other inherited or gifted assets subject to registration of ownership or use rights, assessable income shall be determined according to the price on which registration fee is charged of the same or similar assets (if any) at the time of registration. If the inherited or gifted assets are imported and subject to import duties, the taxable asset value shall be the price on which registration fee is charged at the time of ownership registration minus (-) taxes paid during importation.

Article 62. PIT on other income

1. PIT on other income of resident individuals prescribed in Clauses 1, 2 and 3 Article 16 of this Decree shall be determined by multiplying the assessable income by the tax rate of 5%, where assessable income is the portion of income exceeding 20 million VND received by the taxpayer in each instance.

For income from transfer of license plates purchased at auction, assessable income shall be the portion exceeding 20 million VND of the transfer price (including the vehicle to which the auctioned plate is attached) minus (-) the remaining value of the vehicle according to the price on which registration fee is charged at the time of transfer.

2. PIT on other income of resident individuals prescribed in Clause 4 Article 16 of this Decree shall be determined by multiplying the transfer price by the tax rate of 0,1%.

3. The time for determination of assessable income shall be the time the income is paid by the income payer to the taxpayer or the time the taxpayer receives the income.

4. Tax withholding, tax declaration and payment on behalf of taxpayers shall comply with Article 67 of this Decree and tax administration laws.

Chapter V

BASIS FOR CALCULATION OF PERSONAL INCOME TAX PAYABLE BY NON-RESIDENT INDIVIDUALS

Article 63. PIT on income from business operations

1. Tax on income from business operations of non-resident individuals shall be calculated by multiplying the revenue from business operations prescribed in Clause 2 of the Law on Personal Income Tax by the tax rates specified in Clause 3 Article 20 of the Law on Personal Income Tax.

2. In cases where the non-resident individual earns revenue from multiple business lines but cannot separate the revenue from each business line, the highest PIT rate of those applied to these business lines shall be applied to the total revenue.

3. The time for determination of assessable income from business operations is the time when the non-resident individual receives the income or when the invoice for sale of goods or provision of services is issued.

4. Tax withholding, tax declaration and payment on behalf of taxpayers shall comply with Article 67 of this Decree and tax administration laws.

Article 64. PIT on income from salaries and remunerations

1. PIT on income from salaries and remunerations of a non-resident individual shall be determined by multiplying the total amount of salaries and remunerations earned by the individual for performing works in Vietnam by the tax rate of 20%.

2. Income from salaries and remunerations of non-resident individuals shall be determined similarly to taxable income from salaries and remunerations of resident individuals.

3. Determination of income from salaries and remunerations earned in Vietnam by non-resident individuals who work both in Vietnam and overseas but cannot separate the income earned in Vietnam:

a) If the foreign individual is not present in Vietnam:

Where: The Total number of working days in the year shall be determined in accordance with the Labor Code of Vietnam.

b) If the foreign individual is present in Vietnam:

Other taxable income (before tax) earned in Vietnam under Point a and Point b of this Clause is other monetary and non-monetary benefits received by the individual in addition to salaries and remunerations paid by the employer to the employee.

4. The time or determination of assessable income from salaries and remunerations of a non-resident individual is the time when the organization or individual in Vietnam pays the income to the non-resident individual, or the time the non-resident individual receives the income.

5. Tax withholding, tax declaration and payment on behalf of taxpayers shall comply with Article 67 of this Decree and tax administration laws.

Article 65. PIT on income from capital investment, capital transfer, real estate transfer, royalties, franchising, inheritance, gifts, and other income of non-resident individuals

1. PIT on income from capital investment, capital transfer, real estate transfer, royalties, franchising, inheritance, gifts, and other income of non-resident individuals under Articles 22, 23, 24, 25, 26 and 27 of the Law on Personal Income Tax shall be determined in accordance with Articles 52, 53, 54, 55, 56, 57, 58, 59, 60, 61 and 62 of this Decree.

2. Tax withholding, tax declaration and payment on behalf of taxpayers shall comply with Articles, 55, 56, and 57 of this Decree and tax administration laws.

Chapter VI

TAX PERIODS, TAX WITHHOLDING, TAX DECLARATION AND PAYMENT ON BEHALF OF TAXPAYERS, TAX SETTLEMENT AND TAX REFUND

Article 66. Tax periods

1. Tax periods applicable to resident individuals:

a) For income from business operation and income from the individual’s salaries and remunerations, the tax period shall be the Gregorian calendar year

If the individual qualifies as a resident individual within the Gregorian calendar year, the tax period shall be the Gregorian calendar year.

If, within a Gregorian calendar year, an individual is present in Vietnam for fewer than 183 days but is present for 183 days or more within 12 consecutive months from the first day of arrival, the first tax period shall be the 12 consecutive months from the first day of arrival. From the second year onward, the tax period shall be the Gregorian calendar year if the individual qualifies as a resident individual during that year. Remaining PIT payable in the second tax year shall be calculated as follows:

Where:

b) Irregular PIT shall be paid on income from capital investment and capital transfer, including income from securities transfer; income from real estate transfer, winnings, royalties, franchising, inheritance, gifts, and other income.

2. Tax periods applicable to non-resident individuals:

PIT incurred by non-resident individuals shall be paid whenever income is earned.

Article 67. Withholding tax, declaring and paying tax on behalf of individuals

1. Income payers (including owners of e-commerce platforms, other digital platforms with online ordering and online payment, organizations signing fixed-price agency contracts for insurance, lottery, multi-level marketing, organizations contracting with individuals for brokerage activities; income payers of non-resident individuals; Vietnamese parties reimbursing salary expense for foreign parties) must withhold PIT before paying income to individuals, except for income specified in Clause 4 of this Article, and transfer the withheld PIT to state budget.

Organizations and individuals prescribed in Clauses 2, 3 and 4 Article 55, Clause 3 and Clause 5 Article 56, Point b and Point d Clause 5, Points c, d and dd Clause 6 Article 57 of this Decree, and organizations having business cooperation with individuals shall declare and pay PIT on behalf of individuals.

2. Withheld PIT shall be based on the amount of PIT payable and amount of PIT provisionally paid on income from salaries and remunerations according to regulations of Chapter IV and Chapter V of this Decree.

PIT withheld, declared and paid on behalf of resident individuals on income from business operations under Clause 1 of this Article shall be determined according to the PIT rates specified in Clause 3 Article 7 of the Law on Personal Income Tax and assessable revenue generated at the organization. Withheld PIT of individuals doing business on e-commerce platforms and other digital platforms shall be determined in accordance with tax administration laws.

If PIT is not withheld by the income payer during the year and the individual determines at the end of the year that his/her income is subject to PIT, the individual shall declare and pay PIT for that year.

3. Documentation and procedures for withholding tax, declaring and paying tax on behalf of individuals shall comply with tax administration laws.

4. The following types of income shall not be withheld, declared and paid on behalf of individuals:

a) Income from business operations of resident individuals, except income from business operation on e-commerce platforms, other digital platforms with online ordering and online payment, income from business cooperation with organizations, income from activities of insurance agents, lottery agents, multi-level marketing agents under fixed-price contracts with organizations;

b) Income from capital transfer of resident individuals, except those prescribed in Clauses, 2, 3 and 5 Article 56 of this Decree;

c) Income from real estate transfer, except those prescribed in Points b and d Clause 5, Points c, d and dd Clause 6 Article 57 of this Decree;

d) Income from receipt of inheritance or gifts.

5. In cases where the income payer has not withheld, declared and paid PIT on behalf of individuals, the individuals shall declare and pay PIT themselves in accordance with tax administration laws and this Decree if their income is paid by foreign organizations without taxpayer registration in Vietnam, or fall into any of the cases specified in Clause 4 of this Article.

Article 68. Tax settlement and tax refund

1. PIT settlement shall comply with regulations of tax administration laws and this Decree.

2. Cases of PIT refund:

a) The amount of PIT paid is greater than the amount payable (overpayment);

b) PIT has been paid by the individual whose income is below the taxable threshold;

c) Other cases decided by competent authorities.

3. Settlement and refund of PIT on income from business operation of resident individuals shall comply with regulations of Decree No. 68/2026/ND-CP, its amending documents, and tax administration laws.

4. Documentation and procedures for PIT settlement and refund shall comply with regulations of tax administration laws.

Chapter VII

IMPLEMENTATION CLAUSES

Article 69. Entry into force

1. This Decree enters into force from July 01, 2026, except:

a) Regulations on income from business operations, salaries and remunerations of resident individuals, which shall be applicable from the tax period of 2026;

b) Regulations on meal allowances under Point g Clause 2 Article 8 of this Decree, which shall be applicable from July 01, 2026.

2. This Decree replaces the Government’s Decree No. 65/2013/ND-CP dated June 27, 2013 elaborating some Articles of the Law on Personal Income Tax and the Law on Amendments to the Law on Personal Income Tax.

3. The following regulations are annulled:

a) Article 3 of the Government’s Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to some tax-related Decrees;

b) Article 2 of the Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 elaborating the Law on amendments to tax-related Laws and tax-related Decrees.

4. In cases where the legislative documents referred to in this Decree are amended or replaced, the amending or replacing documents shall apply.

Article 70. Transition clauses

1. Time limit for registration of dependants and submission of supporting documents for the tax period of 2025 and early shall comply with legislative documents on PIT before the effective date of this Decree.

2. In cases where PIT on income from salaries and remunerations earned during the tax year 2026 has been declared and paid during the period from January 01, 2026 to June 30, 2026 under legislative documents on PIT that are effective before July 01, 2026 (the effective date of this Decree), submission of the monthly and quarterly tax declaration dossiers is not required. Instead, adjustments shall be made to the tax settlement dossier of 2026.

Article 71. Responsibility for implementation

1. The Minister of Finance shall elaborate the assigned Articles and Clauses of this Decree, and provide guidance on implementation of this Decree within its jurisdiction.

2. Other Ministers, heads of ministerial-level agencies, Presidents of the People’s Committees of provinces and cities, relevant organizations and individuals are responsible for the implementation of this Decree.

 

 

APPENDIX

LIST OF BUSINESS LINES SUBJECT TO REVENUE-BASED PERSONAL INCOME TAX PAYABLE BY RESIDENT INDIVIDUALS EARNING INCOME FROM BUSINESS
(Promulgated together with the Government’s Decree No. 253/2026/ND-CP dated June 30, 2026)