Decree 253/2026/ND-CP detail the Law on Personal Income Tax

DECREE

Detailing a number of articles, and providing measures to organize and guide the implementation, of the Law on Personal Income Tax

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

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

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree detailing a number of articles, and providing measures to organize and guide the implementation, of the Law on Personal Income Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree details a number of articles of the Law on Personal Income Tax, including: Clause 4, Article 2; Point c of Clause 2 and Clause 11, Article 3; Clause 22, Article 4; Clauses 5 and 6, Article 5; Article 6; Clause 5, Article 7; Clause 2, Article 8; Clauses 2 and 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; and Clause 5, Article 28.

2. This Decree provides measures to organize and guide the implementation, of the Law on Personal Income Tax, including: Taxpayers being residents and non-residents; taxable income and income not included in taxable income; income eligible for exemption or reduction; conditions for tax exemption or reduction; tax bases applicable to each type of income; conversion of taxable income; tax periods; tax withholding, tax declaration and payment on behalf of taxpayers; tax finalization and tax refunds; and implementation provisions.

Article 2. Subjects of application

This Decree applies to taxpayers, tax offices, and other organizations and individuals related to the matters prescribed in Article 1 of this Decree.

Article 3. Taxpayers

1. Personal income taxpayers are residents having taxable income prescribed in Article 3 of the Law on Personal Income Tax arising within and outside the territory of Vietnam, and non-residents having taxable income prescribed in Article 3 of the Law on Personal Income Tax arising within the territory of Vietnam.

2. Residents and non-residents shall be determined in accordance with Articles 4 and 5 of this Decree.

Article 4. Residents

A resident is an individual who satisfies one of the conditions prescribed in Clause 2, Article 2 of the Law on Personal Income Tax, as detailed below:

1. Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of his/her presence in Vietnam. For an individual entering and exiting Vietnam, the date of entry shall be counted as one day, the date of exit shall be counted as one day, and where the individual enters and exits Vietnam on the same day, such entry and exit shall be counted as one day of residence. The date of entry and the date of exit shall be determined based on the certification of the immigration agency in the passport, laissez-passer, or documents related to the individual's purpose of entry into and exit from Vietnam upon arrival in and departure from Vietnam.

An individual present in Vietnam under this Clause means a person who is present in the Vietnamese territory.

2. Having a place of habitual residence in Vietnam in either of the following cases:

a) Having a registered place of permanent residence, specifically as follows:

For Vietnamese citizens: A place where an individual regularly and permanently resides without a definite term at a specified dwelling and has registered permanent residence in accordance with the law on residence.

For foreigners: The permanent residence recorded in the permanent residence card or the temporary residence declared in the application for a temporary residence card by a competent agency under the Ministry of Public Security;

b) Having rented a house for residence in Vietnam in accordance with the law on housing under a lease contract with a term of 183 days or more in a tax year, specifically as follows:

An individual who does not yet have, or does not have, a habitual residence as specified at Point a of this Clause but has an aggregate house lease term of 183 days or more during the tax year under lease contracts shall also be determined to be a resident, including where he/she leases dwellings at multiple locations. Leased dwellings include accommodations at hotels, guesthouses, inns, lodging houses, workplaces, and head offices, regardless of whether the dwelling is leased by the individual or by the employer on behalf of the employee.

3. A person having a place of habitual residence under Clause 2 of this Article who is actually present in Vietnam for less than 183 days in a tax year, but cannot prove the country of his/her residence, is a resident in Vietnam.

Proof of being a resident of another country shall be based on a certificate of residence. Where an individual is a resident of a country or territory that has concluded an agreement for the avoidance of double taxation and the prevention of fiscal evasion with Vietnam, and such agreement has no provisions on grant of a certificate of residence, the individual shall provide a copy of his/her passport to substantiate the period of residence.

Article 5. Non-residents

A non-resident under Clause 3, Article 2 of the Law on Personal Income Tax means a person who does not satisfy the conditions specified in Article 4 of this Decree.

Chapter II

INCOME LIABLE TO PERSONAL INCOME TAX

Article 6. Taxable income

1. An individual’s taxable income comprises the types of income prescribed in Articles 7, 8, 9, 10, 11, 12, 13, 14, 15, and 16 of this Decree, excluding tax-exempt income prescribed in Section 1, Chapter III of this Decree.

2. The scope of determination of the taxable income of residents and non-residents is prescribed as follows:

a) Taxable income of residents is that earned inside and outside the Vietnamese territory, regardless of where the income is paid or received;

b) Taxable income of non-residents is that earned within the Vietnamese territory, regardless of where the income is paid or received.

3. For countries with which the Socialist Republic of Vietnam has concluded an agreement for the avoidance of double taxation and the prevention of fiscal evasion, the personal income tax paid abroad shall be credited against the personal income tax payable in Vietnam in accordance with the provisions of the agreement.

Article 7. Income from business activities

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

1. Income from goods production or trading or service provision as prescribed by law. With respect to income derived by households and individuals directly engaged in the production of crops, planted forests, livestock, aquaculture, fishing, or salt production, where the products have not been processed into other products or have undergone only ordinary preliminary processing, this provision applies only to cases that do not satisfy the conditions for tax exemption prescribed in Article 21 of this Decree.

2. Income from independent professional practice of individuals possessing practice licenses or certificates and having business registration under law.

3. Income from agency activities, including insurance agency, lottery agency, and multi-level marketing agency activities.

4. Income from brokerage activities in accordance with law.

5. Income from business cooperation activities with organizations and enterprises.

6. Income from e-commerce business activities and business activities conducted through digital platforms.

Article 8. Income from salaries or wages

Income from salaries or wages prescribed in Clause 2, Article 3 of the Law on Personal Income Tax includes:

1. Salaries, wages and amounts of similar nature that employees receive from employers in monetary or non-monetary form.

2. Remuneration and monetary or non-monetary benefits that an individual receives from organizations, individuals, or employers in any form, including:

a) Remuneration for participation in research topics, projects, and schemes; royalties in accordance with the laws on royalty regimes; remuneration for teaching activities; remuneration for participation in cultural, artistic, physical training, and sports performances;

b) Amounts received from participation in boards of directors, supervisory boards, management councils, associations, professional associations, associations established in accordance with law, and other organizations;

c) Remuneration received from the provision of services by individuals who are not registered for business and are not registered for tax purposes in respect of their business activities, regardless of whether they hold a practicing license or practicing certificate;

d) Membership fees and other service expenses provided to individuals for healthcare, recreation, sports, entertainment, and beauty care. Where such services are used on a shared basis and do not identify the individual or group of individuals using the services on the voucher or membership card, they shall not be included in taxable income.

dd) The portion of lump-sum allowances for stationery expenses, business travel expenses, telephone expenses, and work attire expenses exceeding the following prescribed levels:

For cadres, civil servants, public employees, and persons working in state administrative agencies, non-business units, Party organizations, mass organizations, and associations: The applicable lump-sum allowance level shall be that prescribed in documents issued by competent state agencies or in the regulations of such agencies or organizations.

For employees working for enterprises and other organizations engaged in production and business activities: The applicable lump-sum allowance level shall be consistent with the deductible expense determination upon determining corporate income tax in accordance with the law on corporate income tax.

For employees working for international organizations and representative offices of foreign organizations: The applicable lump-sum allowance level shall comply with the regulations of the international organizations or representative offices of foreign organizations;

e) Amounts contributed by employers for employees' participation in supplementary pension insurance in accordance with the Law on Social Insurance, or for the purchase of voluntary pension insurance or life insurance for employees;

g) Mid-shift meal and lunch allowances paid by employers to employees in excess of VND 1.2 million/person/month. Where an employer provides mid-shift meals or lunches for employees in the form of directly preparing meals, purchasing meal portions, or issuing meal vouchers, such benefits shall not be included in the taxable income;

h) House rents, charges for electricity, water and associated services (if any)

Where an employee enjoys housing benefits from housing constructed by the employer for employees working at the employer's establishment, such housing benefit, including electricity, water, and associated services (if any), shall not be included in the employee's income liable to personal income tax.

Where house rents, electricity, water, and associated services (if any) are paid on behalf of the employee by the employer, the amount actually paid on the employee's behalf shall be included in the taxable income but shall not exceed 15% of the employee's total taxable income arising at the establishment, excluding house rents, electricity, water, and associated services (if any);

i) Monetary or non-monetary bonuses, including bonuses in the form of securities; bonuses awarded through contests or events organized by the employer for employees. For non-monetary bonuses, the conversion shall be carried out in accordance with Article 17 of this Decree;

k) Other benefits paid by employers to employees, including benefits provided during holidays and public holidays; expenses for engaging consulting services or tax compliance services for specifically identified individuals or groups of individuals; and expenses for hiring domestic workers, drivers, or other household workers under employment contracts.

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

a) Monthly preferential allowances and subsidies and lump-sum allowances paid under the law on preferential treatment of persons with meritorious services;

b) Monthly and lump-sum allowances for persons participating in resistance wars or fatherland protection or performing international duties, or volunteer youth having fulfilled their duties;

c) Defense or security allowances and subsidies; allowances and subsidies for the armed forces;

d) Hazard or danger allowances, or and in-kind allowances for persons working in sectors, occupations or jobs at places where exist hazardous or dangerous elements;

dd) Incentive allowances for persons working in particular sectors or regions;

e) Allowances, subsidies, and living expenses paid by Vietnamese overseas missions to members of Vietnamese overseas missions, their spouses, and accompanying children in accordance with the Law on Overseas Representative Missions of the Socialist Republic of Vietnam, the Government's Decree No. 08/2019/ND-CP providing a number of regimes for members of overseas Vietnamese missions, and amending, supplementing, or replacing documents thereof;

g) Labor accident or occupational disease allowances; lump-sum maternity or child adoption allowances; working capacity loss allowances, lump-sum retirement allowances, monthly survivor allowances, and other allowances provided in the law on social insurance;

h) Allowances for sudden difficulties, severance and job loss allowances in accordance with law.

Where an organization or enterprise specifically provides in its financial regulations, internal regulations, employment contract, or collective bargaining agreement for severance allowances or job loss allowances at levels higher than those prescribed by law, the portion of the actual payment exceeding such prescribed levels shall likewise not be included in the employee's taxable income;

i) Allowances for social security beneficiaries as prescribed by the law on social security;

k) Service allowances for senior leaders;

l) Lump-sum allowances for persons moving to work in areas with extremely difficult socio-economic conditions, lump-sum allowances for cadres and civil servants engaged in sea and island sovereignty work as prescribed by law. Lump-sum expatriation allowances for foreigners residing in Vietnam, Vietnamese working abroad and overseas Vietnamese working in Vietnam.

With respect to lump-sum expatriation allowances for foreigners residing in Vietnam, Vietnamese working abroad and overseas Vietnamese working in Vietnam, the allowance shall be determined according to the amount specified in the decision or document on assignment or transfer, financial regulations, internal regulations, employment contract, or collective bargaining agreement;

m) Allowances for village health workers;

n) Particular occupational allowances.

The allowances and subsidies excluded from taxable income under this Clause must be prescribed by competent state agencies in accordance with the laws on preferential treatment of persons with meritorious services, national defense, security, diplomacy, labor, social insurance, healthcare, education and training, and other relevant laws. Where the allowance or subsidy received exceeds the prescribed allowance or subsidy level, the excess amount shall be included in the individual's income liable to personal income tax, except as provided at Point h of this Clause.

4. The following income not in the nature of salaries or wages shall not be included in income liable to personal income tax:

a) Bonuses accompanying honorary titles conferred by the State; bonuses accompanying emulation titles and forms of commendation in accordance with the laws on emulation and commendation; bonuses accompanying national prizes and international prizes recognized by the Vietnamese State; bonuses for technical renovations, innovations, and inventions recognized by competent state agencies; and bonuses for detecting and reporting on illegal acts to competent state agencies;

b) Employers’ financial supports for the medical examination and treatment of serious illnesses for employees and their relatives, including: Natural children, adopted children, stepchildren of the spouse; spouse; natural father and natural mother; father-in-law and mother-in-law; stepfather and stepmother; adoptive father and adoptive mother.

The support amount excluded from taxable income shall be the actual amount provided by the employer as evidenced by invoices and supporting documents, but not exceeding the employee's or his/her relatives’ hospital expenses after deducting the amount paid by the insurance organization (if any).

The determination of a serious illness shall comply with the regulations of the Minister of Health;

c) Amounts received under regulations on the use of vehicles in state agencies, public non-business units, Party organizations and mass organizations; and shuttles for employee transport between their residence and workplace in accordance with the internal regulations of the unit;

d) Amounts received under the public-duty house regime as prescribed by law;

dd) Amounts received in addition to salaries or wages for participating in or supporting the activities of the Party, mass organizations, or the National Assembly; for drafting, providing comments on, appraising, or examining legal documents, resolutions, or political reports; for participating in inspection or supervisory delegations; for meeting with voters or receiving citizens; for work attire; and for other tasks directly serving the activities of the Office of the National Assembly, the Council for Ethnic Affairs and the Committees of the National Assembly, National Assembly Delegations, the Central Office of the Party and its Commissions, the Offices of Municipal Party Committees and Provincial Party Committees and their Commissions;

e) Airfare purchased and paid on behalf of (or reimbursed to) employees by employers for foreign employees and Vietnamese employees working overseas for one home leave trip each year, from Vietnam to the country of the foreign employee's nationality or the country where the foreign employee's family resides and vice versa, or from the country where the Vietnamese employee is working to Vietnam and vice versa;

g) School fees for children of foreign employees studying in Vietnam or overseas-working Vietnamese employees’ children studying abroad from preschool to upper secondary education paid by employers on behalf of (or reimbursed to) their employees;

h) Premiums paid by employers for employees' participation in non-compulsory insurance products without premium accumulation, including health insurance products and term life insurance products (excluding term life insurance products with premium refund), under which the insured does not receive any accumulated premium from participation in the insurance other than insurance proceeds or indemnities paid by the insurance enterprise in accordance with the insurance contract.

Where non-compulsory insurance without premium accumulation is purchased from insurance enterprises not established and operating under the laws of Vietnam but permitted to sell insurance in Vietnam, such premiums shall not be included in the income liable to personal income tax under this Point;

i) Amounts paid by employers on behalf of employees for training to enhance employees' qualifications or professional skills, where such training is relevant to the employees' professional duties or is conducted in accordance with the employer's training plan;

k) Payments made by employers to suppliers or to employees to facilitate the assignment, transfer, or business travel of employees in accordance with the decision or document on assignment, transfer, or business travel, the financial regulations, internal regulations, employment contract, or collective bargaining agreement, and supported by invoices and documents as prescribed;

l) Income received by individuals from associations or organizations providing sponsorship, where the individuals are members of such associations or organizations and participate in the creation of literary and artistic works to perform the State's political tasks or under activity programs consistent with the charter of the association or organization, and the sponsorship funding is financed from the state budget or managed in accordance with the State's regulations;

m) Amounts received from employers for funeral or wedding expenses for employees and their families in accordance with the financial regulations, internal regulations, employment contract, or collective bargaining agreement of the income payer, and consistent with the deductible expense limits for determining income liable to corporate income tax under the law on corporate income tax;

n) Monetary amounts and benefits received from trade union financial resources that are not in the nature of salaries or wages in accordance with the Law on Trade Unions;

o) Nutrition allowances and benefits under the special regime for healthcare and the physiological well-being of women as prescribed in Articles 5 and 8 of the Government's Decree No. 349/2025/ND-CP providing regimes and policies applicable to members of sports teams participating in centralized training and competition.

Article 9. Income from capital investment

Income from capital investment 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. Dividends received from capital contributions through the purchase of shares; profit distributions received from capital contributions to limited liability companies, partnerships, cooperatives, cooperative unions, joint ventures, business cooperation contracts, and other forms of business in accordance with law; profit distributions received from capital contributions to credit institutions; and profit distributions received from capital contributions to securities investment funds and other investment funds established and operating in accordance with law.

3. Income from capital investment in other forms, including:

a) The increase in the value of contributed capital received upon the dissolution of an enterprise, conversion of its operating model, division, splitting, merger, or consolidation of an enterprise, or upon withdrawal of capital;

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

c) Income received from capital investment in other forms in accordance with law, including capital contributions in the form of assets in kind, land use rights, land-attached assets, intellectual property rights, technology, and technical know-how;

d) Income from stock dividends, stocks issued from owners' equity to existing shareholders, and income from profit distributions used to increase contributed capital.

Article 10. Income from capital transfer

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

1. Income from the transfer of part or all of the contributed capital in a limited liability company, partnership, business cooperation contract, cooperative, cooperative union, people's credit fund, or other organization.

2. Income from securities transfers, including income from the transfer of stocks and stock purchase rights; the transfer of bonds, treasury bills, fund certificates, and other securities in accordance with the law on securities; and income from the transfer of stocks by individuals in joint-stock companies as prescribed in Clause 2, Article 4 of the Law on Securities and Article 121 of the Law on Enterprises.

3. Income arising from the contribution of capital in the form of contributed capital or securities for the establishment of an enterprise or the increase of an enterprise's charter capital in accordance with law.

4. Income from capital transfer in other forms, including the sale of an enterprise, the transfer of capital contribution rights, and other forms of capital transfer in accordance with law.

5. Where an entire sole proprietorship or a single-member limited liability company owned by an individual is sold in the form of a capital transfer associated with real estate, the income therefrom shall be determined as income from real estate transfer activities.

Article 11. Income from real estate transfer

Income from real estate transfer prescribed in Clause 5, Article 3 of the Law on Personal Income Tax means income derived from transfer activities or authorization arrangements under which the authorized person is vested with rights equivalent to ownership rights over real estate in accordance with the civil laws, specifically as follows:

1. Income from the transfer of land use rights; income from the transfer of land use rights and land-attached assets, in which land-attached assets include:

a) Houses, including future houses;

b) Infrastructure facilities and construction works attached to land, including future construction works in accordance with the law on real estate business;

c) Assets being agricultural, forestry, and fishery products attached to land.

2. Income from the transfer of ownership rights to, or use rights to, houses, including future houses in accordance with the law on real estate business.

3. Income from the transfer of land lease rights under land lease contracts (including land with water surface), and water surface lease rights.

4. Other income received from real estate transfers in any form, including income arising from capital contributions in the form of real estate for establishment of an enterprise or increase of an enterprise's charter capital in accordance with law.

Article 12. Income from prize winning

Income from prizes prescribed in Clause 6, Article 3 of the Law on Personal Income Tax means sums of money or benefits in kind received by an individual, including:

1. Lottery prizes paid by lottery companies.

2. b) Sales promotion prizes in all forms for goods or service purchase in accordance with the Commercial Law.

3. Prizes won through forms of betting permitted by law.

4. Prizes won in prized games, prize-winning contests, and other forms of prize winning, except prizes won in casinos and bonus amounts prescribed at Point i, Clause 2, Article 8 of this Decree.

Article 13. Income from copyright royalty

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

1. Income from the transfer or licensing of intellectual property objects in accordance with the law on intellectual property.

2. Income from technology transfer in accordance with the law on technology transfer.

Article 14. Income from commercial franchising

Income from commercial franchising prescribed in Clause 8, Article 3 of the Law on Personal Income Tax means income received by individuals under commercial franchise contracts, including the re-franchising of commercial rights in accordance with the commercial law.

Article 15. Income from inheritances or gifts

Income from inheritances or gifts prescribed in Clause 9, Article 3 of the Law on Personal Income Tax includes:

1. Income from inheritances or gifts that are of part or all of the contributed capital in a limited liability company, partnership, business cooperation contract, cooperative, cooperative union, people's credit fund, or other organization.

2. Income from inheritances or gifts that are stocks and stock purchase rights; bonds, treasury bills, fund certificates, and other securities in accordance with the law on securities; and stocks of individuals in joint-stock companies as prescribed in Clause 2, Article 4 of the Law on Securities and Article 121 of the Law on Enterprises.

3. Income from inheritances or gifts being real estate includes: Land use rights; land use rights together with land-attached assets; ownership rights to houses, including future houses; infrastructure facilities and construction works attached to land, including future construction works; land lease rights under land lease contracts (including land with water surface); water surface lease rights; and other assets constituting real estate in accordance with law.

4. Income from inheritances or gifts that are automobiles, mopeds, motorcycles, watercraft, including barges, motorboats, tugboats, push boats, boats, including yachts, aircraft, hunting guns, sporting guns, and other assets subject to registration of ownership or use rights with a state management agency.

Article 16. Other income

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

1. Income from the transfer of the Vietnamese national domain name “.vn”, means income received from the transfer of the right to use the Vietnamese national domain name “.vn” to another organization or individual.

2. Income from the transfer of greenhouse gas emission reductions and carbon credits by individuals owning such greenhouse gas emission reductions or carbon credits, except for the case prescribed in Clause 1, Article 34 of this Decree.

3. Income from the transfer of auction-winning vehicle license plates in accordance with law.

4. Income from the transfer of digital assets, including virtual assets, crypto assets, and other digital assets in accordance with the law on the digital technology industry.

Article 17. Conversion of taxable income

1. Taxable personal income received in a foreign currency shall be converted into Vietnam dong at the buying exchange rate of the commercial bank where the individual opens the transaction account or where the income-paying organization or individual opens the account used to make the income payment, at the time the income arises. Where the organization or individual does not open an account in Vietnam, the conversion shall be based on the central exchange rate between the Vietnam dong and the US dollar or the cross exchange rate between the Vietnam dong and other foreign currencies announced on the portal of the State Bank of Vietnam at the time the income arises.

2. Taxable personal income received in forms other than money shall be converted into monetary value and determined in Vietnam dong based on the normal market transaction value of such goods or services, or goods or services of the same kind or equivalent, at the time the income arises.

Chapter III

INCOME ELIGIBLE FOR EXEMPTION OR REDUCTION

Section 1

TAX-EXEMPT INCOME

Article 18. Income from transfer or receipt ò inheritances or gifts being real estate includes

1. Incomes from the transfer or receipt of inheritances or gifts that are real estate (including houses and construction works to be formed in the future under the law on real estate business) between spouses, parents and their children; adoptive parents and their adopted children; fathers-in-law or mothers-in-law and daughters-in-law or sons-in-law (including where the husband or the wife has died); grandparents and their grandchildren; or among blood siblings, shall be exempted from personal income tax.

2. Where real estate (including houses and future construction works in accordance with the law on real estate business) is divided upon divorce between spouses pursuant to their agreement or a court judgment, the income arising from such division of property shall be exempted from tax.

3. The dossier and procedures for tax exemption shall comply with the law on tax administration.

Article 19. Income from transfer of individuals’ single house, residential land use rights, and residential land-attached assets

1. Income from the transfer of houses, rights to use residential land and assets attached to residential land received by individuals who have a single house and land use rights in Vietnam, shall be exempted from personal income tax.

The tax exemption prescribed in this Clause shall not apply to the transfer of future houses or future construction works.

2. An individual having a single house and land use rights in Vietnam prescribed in Clause 1 of this Article who is entitled to tax exemption must satisfy the following conditions:

a) At the time of transfer, that person has the right to own or use only one house or one residential land lot (including land attached with houses or construction works). Where, at the time of the transfer, that person also owns a future house or future construction work, such transfer shall not be regarded as the transfer of the individual's single house or residential land use rights.

Where a house under co-ownership or residential land under common land use rights is transferred (including a house or residential land jointly owned or jointly used by spouses), only the individual who does not own another house or hold residential land use rights elsewhere shall be entitled to the tax exemption; a co-owner or co-user who also owns another house or holds residential land use rights elsewhere shall not be entitled to the tax exemption;

b) That person has the right to own or use the house or residential land for at least 183 days counted to the time of transfer.

The time for determining ownership of the house or residential land use rights shall be the date of issuance of the certificate of residential land use rights, ownership of houses, and other land-attached assets. In case of re-issuance or renewal of the certificate in accordance with the land law, the time for determining ownership of the house or residential land use rights shall be determined based on the date of issuance of the certificate of land use rights, ownership of houses, and other land-attached assets issued prior to such re-issuance or renewal;

c) The entire house or the entire residential land use rights are transferred. Where an individual owns or co-owns only one house or holds or jointly holds residential land use rights to only one residential land parcel but transfers only a portion thereof, the transferred portion shall not be eligible for tax exemption.

3. The only house or residential land use rights eligible for tax exemption shall be self-declared by the individual transferring the real estate, who shall bear responsibility for such declaration. Where an inaccurate declaration is discovered, the tax amount shall be retrospectively collected, and penalties shall be imposed in accordance with the law on tax administration and other relevant laws.

4. The dossier and procedures for tax exemption shall comply with the law on tax administration.

Article 20. Income from the value of land use rights of individuals allocated by the State

1. Income from the value of land use rights of individuals who are allocated land by the State without having to pay land use levy or with reduced land use levy under law, shall be exempted from personal income tax.

2. Where an individual is exempted from or granted a reduction of land use levy upon land allocation and subsequently transfers the land area for which the land use levy was exempted or reduced, the individual shall declare and pay tax on the income from the real estate transfer.

3. The dossier and procedures for tax exemption shall comply with the law on tax administration.

Article 21. Income of households and individuals directly engaged in the production of crop products, planted forest products, livestock, aquaculture products, or fishing of aquatic products which are unprocessed or preliminarily processed; salt making

1. Income of households and individuals directly engaged in the production of crop products, planted forest products, livestock, aquaculture products, or fishing of aquatic products which are unprocessed or preliminarily processed; salt making, shall be entitle to personal income tax exemption.

2. The tax exemption for the income of households and individuals prescribed in Clause 1 of this Article shall be subject to the following conditions:

a) Having lawful land use rights, land lease rights under land lease contracts (including land with water surface), water surface use rights, or water surface lease rights for production, and directly participating in the production of crop products, planted forest products, livestock, aquaculture products, fishing of aquatic products, or salt making.

Where land or water surface is subleased from another organization or individual, there must be a written land or water surface lease agreement in accordance with law (except where households or individuals undertake contracted planted forest cultivation, forest tending, forest management, and forest protection in accordance with law). For fishing activities, there must be a certificate of ownership of, or a lease contract for, vessels or boats used for fishing purposes, and the individual must directly participate in fishing activities (except fishing activities conducted on rivers using fixed fish traps (bottom fishing) and activities not falling within the fishing activities prohibited by law);

b) Actually residing in the locality where the production of crop products, planted forest products, livestock, aquaculture products, fishing of aquatic products, or salt making takes place.

The locality where the production of crop products, planted forest products, livestock, aquaculture products, or salt making takes place shall be determined by the commune-level administrative unit, including communes adjacent to the commune where the production activities take place.

For fishing activities, the place of residence is not a determining factor.

3. The determination of products that are unprocessed or preliminarily processed as prescribed in Clause 1 of this Article shall comply with Decree No. 181/2025/ND-CP detailing the implementation of a number of articles of the Law on Value-Added Tax and the amending and supplementing documents.

Article 22. Income from share dividends of members of agricultural cooperatives or cooperative unions, and individuals being farmers entering into contracts with enterprises to participate in the “large-scale field” model, production forest planting, or aquaculture

1. Income from share dividends of members of agricultural cooperatives or cooperative unions, and individuals being farmers entering into contracts with enterprises to participate in the “large-scale field” model, production forest planting, or aquaculture, shall be exempted from personal income tax.

2. The determination of members of cooperatives or cooperative unions as the basis for granting the tax exemption prescribed in Clause 1 of this Article shall comply with the law on cooperatives.

3. Individuals participating in the “large-scale field” model, production forest planting, or aquaculture shall be eligible for tax exemption under Clause 1 of this Article only if all of the following conditions are satisfied:

a) Having lawful land use rights, land lease rights under land lease contracts (including land with water surface), water surface use rights, or water surface lease rights for participation in the “large-scale field” model, production forest planting, or aquaculture (including the sublease of land or water surface from other organizations or individuals in accordance with law);

b) Actually residing in the locality where the “large-scale field” model, production forest planting, or aquaculture activities take place.

The locality where the “large-scale field” model, production forest planting, or aquaculture activities take place shall be determined by the commune-level administrative unit, including communes adjacent to the commune where such activities take place.

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

1. Individuals’ income from the transformation of agricultural land for the purpose of rationalizing agricultural production, provided that such transformation does not change the land use purpose of the land allocated by the State to households and individuals directly engaged in agricultural production, shall be exempted from personal income tax.

2. The dossier and procedures for tax exemption shall comply with the law on tax administration.

Article 24. Income from government bond interests, municipal bond interests, interests on deposits at credit institutions, and interests from life insurance contracts

1. Income derived by individuals from interest received on government bonds issued by the government and municipal bonds issued by provincial-level People's Committees, shall be exempted from personal income tax.

2. Interest income received by individuals from deposits in Vietnam dong, gold, or foreign currencies at credit institutions and foreign bank branches established and operating in accordance with the Law on Credit Institutions, in the forms of demand deposits, time deposits, savings deposits, certificates of deposit (including interest received from the transfer of certificates of deposit), promissory notes, treasury bills, and other forms of deposits accepted on the principle of full repayment of principal and interest to depositors in accordance with the agreement, shall be exempted from personal income tax.

3. Interest received by individuals under life insurance contracts purchased from insurance enterprises, shall be exempted from personal income tax.

Article 25. Income from foreign exchange remittances

1. The money amount received by an individual from abroad and remitted by relatives who are overseas Vietnamese or Vietnamese persons working, on official assignment, or studying abroad to their relatives in Vietnam, shall be exempted from personal income tax.

2. Where an individual receives money from abroad remitted by relatives who are foreign nationals and such remittance satisfies the conditions for encouraging inward remittances in accordance with the regulations of the State Bank of Vietnam, such income shall also be exempted from tax under this Article.

3. The basis for determining tax-exempt income shall be documents proving the source of the money received from abroad and payment vouchers issued by the organization making payment on behalf of the remitter (if any).

Article 26. Wages for night work, overtime pay, and wages or remuneration paid for untaken annual leave days in accordance with law

1. Wages for night work and overtime pay for work performed at the workplace in accordance with the conditions and working hours prescribed by the labor law, shall be exempted from personal income tax.

Income-paying organizations and enterprises shall prepare a schedule clearly indicating the hours of night work and overtime work performed at the workplace, and the amounts of wages for night work and overtime pay paid to employees. Such schedule shall be retained by the income-paying organization or enterprise and produced upon request by the tax office. Where a separate schedule is not prepared, the income-paying organization shall be responsible for proving the amounts of wages for night work and overtime pay through payrolls, timesheets, labor contracts, and other lawful documents.

2. Wages or remuneration paid for untaken annual leave days in accordance with the conditions and the levels of wages or remuneration payable for untaken annual leave days under Clause 3, Article 113 of the Labor Code, the Law on Cadres and Civil Servants, and the Law on Public Employees, shall be exempted from personal income tax.

3. Where the wages for night work, overtime pay, or wages or remuneration paid for untaken annual leave days exceed the levels prescribed by law, the excess amount shall be included in the individual's taxable income.

Article 27. Pensions paid by the Social Insurance Fund; income paid by supplementary pension funds and voluntary pension funds

1. Pensions paid by the Social Insurance Fund in accordance with the law on social insurance, including cases where individuals residing or working in Vietnam receive pension income paid from abroad, shall be exempted from personal income tax.

2. Income paid by supplementary pension funds and voluntary pension funds, regardless of whether such income is paid periodically, in a lump sum, or before or after retirement age, shall be exempted from personal income tax.

Article 28. Income from scholarships

1. Income from scholarships granted from the state budget shall be exempted from personal income tax, including: Scholarships granted by the Ministry of Education and Training, Departments of Education and Training, the National Scholarship Fund, talent promotion funds, study promotion funds, public educational institutions, or other scholarships financed from the state budget.

2. Scholarships (including also subsistence allowances) granted by domestic or foreign organizations under their support promotion programs, shall be exempted from personal income tax.

3. Organizations paying scholarships to the individuals specified in Clauses 1 and 2 of this Article shall retain scholarship award decisions and scholarship payment vouchers. Where an individual receives a scholarship directly from a foreign organization, the income recipient shall retain supporting documents or vouchers (if any) as evidence.

Article 29. Income from indemnities paid under life insurance contracts or non-life insurance contracts, compensations for occupational accidents, state liability amounts and other compensation amounts

1. Income from indemnities under life insurance contracts, non-life insurance contracts, and health insurance contracts received by individuals from life insurers, non-life insurers, health insurers, or microinsurance providers and paid to the insured or the beneficiary under the executed insurance contracts, shall be exempted from personal income tax.

The basis for determining such indemnity shall be the indemnity document or decision issued by the insurer or the court, and the indemnity payment voucher.

2. Compensations for occupational accidents received by employees from their employers or the Social Insurance Fund in respect of accidents occurring during the course of employment, shall be exempted from personal income tax.

The basis for determining such compensation shall be the compensation document or decision issued by the employer or the court, and the occupational accident compensation payment voucher.

3. Income from compensation, support, and resettlement received upon the State's recovery of land in accordance with law, including compensation and support paid by organizations and enterprises upon such land recovery, shall be exempted from personal income tax.

The basis for determining the compensation, support, and resettlement income prescribed in this Clause shall be the compensation and resettlement plan approved by a competent state agency.

4. Income from state compensation in accordance with the law on state compensation, shall be exempted from personal income tax.

The basis for determining such compensation shall be the decision of a competent state agency requiring the agency or individual issuing the incorrect decision to pay compensation, and the compensation payment voucher.

5. Income from compensation for non-contractual damage (including late payment interest) in accordance with the Civil Code, shall be exempted from personal income tax.

The basis for determining tax-exempt compensation shall be a legally effective judgment or decision of the Court, or a compensation agreement between the parties that has been notarized or certified in accordance with law.

Article 30. Income received from charity organizations and funds

1. Income received from charity organizations and funds licensed or recognized by competent state agencies and operating for charity, humanitarian or or study promotion purposes on a non-profit basis, shall be exempted from personal income tax.

2. The basis for determining tax-exempt income shall be the document or decision granting the income by the charity fund, and the vouchers for payment of money or delivery of benefits in kind by the charity organizations or funds.

Article 31. Income received from foreign aid

1. Income received from governmental or non-governmental foreign aid for charity or humanitarian purposes (including official development assistance, non-official development assistance, and international emergency aid for disaster relief and recovery) as approved by competent state agencies, shall be exempted from personal income tax.

2. The basis for determining tax-exempt income shall be the document of the competent state agency approving the receipt of the aid.

Article 32. Income from salaries and wages of Vietnamese seafarers

1. Income from salaries and wages of Vietnamese seafarers working for foreign shipping companies or for Vietnamese shipping companies engaged in international shipping, shall be exempted from personal income tax.

2. The determination of Vietnamese seafarers working for foreign shipping companies or Vietnamese shipping companies engaged in international shipping who are eligible for tax exemption under Clause 1 of this Article shall comply with the Vietnam Maritime Code and other relevant legal documents.

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

Income from the provision of goods and services directly serving offshore fishing activities as prescribed by law, of individuals being vessel owners, individuals holding the right to use fishing vessels, and individuals working on board vessels, shall be exempted from personal income tax.

Article 34. Income from the transfer of greenhouse gas emission reduction certificates or carbon credit certificates; income from interest on green bonds, and income from the transfer of green bonds

1. Income from the initial transfer of individuals’ issued or recognized greenhouse gas emission reductions or carbon credits granted to individuals; incomes from interest on green bonds, shall be exempted from personal income tax.

2. Income from interest on green bonds shall be exempted from personal income tax.

3. Income from the initial transfer of green bonds following their issuance shall be exempted from personal income tax.

The income from the transfer of green bonds exempted from tax under this Clause is the income received by an individual from the transfer of green bonds that the individual purchased directly from the green bond issuer.

Article 35. Income from salaries and wages earned from the performance of science, technology and innovation tasks

1. Income from salaries and wages earned from the performance of science, technology and innovation tasks shall be exempted from personal income tax.

2. The tax-exempt income from salaries and wages earned by individuals from the performance of science, technology and innovation tasks shall be determined as follows:

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

The salaries and wages of individuals performing science, technology and innovation tasks funded by the state budget mean the remuneration for participation in science, technology and innovation tasks prescribed at Point a, Clause 1, Article 6 of Decree No. 265/2025/ND-CP detailing and guiding the implementation of a number of articles of the Law on Science, Technology and Innovation regarding finance and investment in science, technology and innovation.

The remuneration for participation in science, technology and innovation tasks received by individuals shall be determined on the basis of science, technology and innovation tasks funded by the state budget that have been approved by competent authorities in accordance with Decree No. 267/2025/ND-CP detailing and guiding the implementation of a number of articles of the Law on Science, Technology and Innovation regarding science, technology and innovation programs and tasks, and a number of provisions on promoting scientific research, technology development and innovation activities, and Decree No. 268/2025/ND-CP detailing and guiding the implementation of a number of articles of the Law on Science, Technology and Innovation regarding innovation; promotion of science, technology and innovation activities in enterprises; recognition of innovation centers, support for innovative start-ups; recognition of innovative start-up individuals and enterprises; and innovation start-up network infrastructure and ecosystem.

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

Science, technology and innovation tasks not funded by the state budget are science, technology and innovation tasks in accordance with the law on science, technology and innovation, approved and implemented by enterprises using their lawful funding sources or the lawful funding sources of cooperating entities, without using funding from the state budget.

The determination of the salaries and wages of individuals participating in the performance of science, technology and innovation tasks not funded by the state budget shall comply with the provisions on enterprise expenditures for sponsoring experts, scientists, and individuals performing scientific research, technology development and innovation tasks prescribed in Clause 1, Article 15 of Decree No. 265/2025/ND-CP, or the provisions on enterprise expenditures for salaries and wages paid to personnel directly participating in scientific research, technology development and innovation activities prescribed in Clause 2, Article 15 of Decree No. 265/2025/ND-CP.

Enterprises shall formulate and issue internal procedures governing the management of science, technology and innovation tasks within the management. Enterprises shall be responsible for the conformity between the scientific research, technology development and innovation activities under the tasks approved by them and the provisions on scientific research, technology development and innovation prescribed by the law on science, technology and innovation.

The dossier for determining eligibility for personal income tax exemption in respect of income from salaries and wages earned from the performance of science, technology and innovation tasks not funded by the state budget shall comprise: The decision approving, or the explanatory statement for, the approved science, technology and innovation task; the contract for hiring scientific research, technology development or innovation; the product handover record, product acceptance record, contract liquidation record, together with the relevant documents, invoices, and vouchers (if any). Such dossier shall be retained by the income-paying organization or enterprise and produced upon request by the tax office.

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

1. Income from copyright of science, technology and innovation tasks when the outcomes of such tasks are commercialized in accordance with the law on science, technology and innovation and the law on intellectual property, shall be exempted from personal income tax.

2. The determination of commercialization of scientific research, technology development and innovation outcomes shall comply with Article 27 of the Law on Science, Technology and Innovation.

Article 37. Income of individual investors and experts from innovative startup projects; founders of innovative start-up enterprises, and individual investors contributing capital to venture funds

1. Income from capital investment received by individual investors from innovative startup projects, founders of innovative start-up enterprises, and individual investors contributing capital to venture funds, shall be exempted from personal income tax.

2. Income from salaries and wages received by experts supporting innovative start-ups from innovative startup projects and innovative start-up enterprises, shall be exempted from personal income tax.

3. The determination of innovative startup projects, innovative start-up enterprises, experts supporting innovative start-ups, individual innovative start-up investors, and individuals or groups of individuals engaged in innovative start-ups who are founders of innovative start-up enterprises shall comply with the law on science, technology and innovation. The determination of venture funds and innovative start-up investment funds shall comply with the law on science, technology and innovation and the law on support for small- and medium-sized enterprises.

Article 38. Income from salaries and wages of foreign experts working for programs and projects funded by non-refundable official development assistance (ODA) and programs and projects of foreign non-governmental organizations in Vietnam; Vietnamese individuals working for representative offices of international organizations within the United Nations system in Vietnam; and individuals participating in United Nations peacekeeping forces

1. Personal income tax exemption shall be granted for income from salaries and wages of foreign experts working on programs and projects funded by non-refundable ODA, who are non-Vietnamese nationals entering Vietnam to provide professional and technical consulting services or perform other tasks serving the research, formulation, appraisal, monitoring and evaluation, management, and implementation of non-refundable ODA programs and projects in accordance with the provisions of, or agreements set out in, treaties on non-refundable ODA concluded between the competent authorities of the Vietnamese party and the Foreign party.

Individuals eligible for tax exemption under this Clause include the following cases:

a) The Foreign party selects and enters into a contract with the expert or the contractor (company), where the expert is included in the contractor's (company's) list of consultants in the bidding documents on the basis of the bidding results approved by the competent authority of the Foreign party and accepted by the Vietnamese party;

b) The Vietnamese party selects and enters into a contract with the expert or the contractor (company), where the expert is included in the contractor's (company's) list of consultants in the bidding documents on the basis of the bidding results approved by the competent authority of the Vietnamese party and accepted by the Foreign party.

2. Personal income tax exemption shall be granted for income from salaries and wages of foreign experts working on programs, projects, or non-project assistance receiving non-ODA aid or international emergency aid for disaster relief and recovery (including aid from foreign non-governmental organizations) in Vietnam, who are non-Vietnamese nationals directly carrying out the activities of such programs, projects, or non-project assistance on the basis of the agreement between the foreign donor and the Vietnamese project managing agency or project owner as prescribed in the approved program, project, or non-project assistance document in accordance with the law on the receipt, management, and use of foreign aid for Vietnam.

Individuals eligible for tax exemption under this Clause include the following cases:

a) A foreign non-governmental organization selects and enters into a contract with a foreign expert under the terms of reference (TOR) attached to the contract;

b) The project managing agency or the owner of the program, project, or non-project assistance receiving non-ODA aid or international emergency aid for disaster relief and recovery (including aid from foreign non-governmental organizations) selects and enters into a contract with a foreign expert under the terms of reference (TOR) attached to the contract.

3. Personal income tax exemption shall be granted for income from salaries and wages of Vietnamese individuals working for representative offices of international organizations of the United Nations system in Vietnam, who are Vietnamese nationals recruited under employment contracts to work for representative offices of international organizations of the United Nations system in Vietnam, excluding Vietnamese individuals recruited to work on an hourly basis.

4. Personal income tax exemption shall be granted for income from salaries and wages of individuals who have been assigned by a competent authority to participate in the United Nations peacekeeping force during the period of performing such duties in accordance with law.

5. The dossiers and procedures for tax exemption prescribed in Clauses 1, 2, and 3 of this Article shall comply with the law on tax administration.

Article 39. Income of owners of sole proprietorships or individuals being owners of single-member limited liability companies

Income of owners of sole proprietorships and individuals being owners of single-member limited liability companies established in accordance with the laws of Vietnam, received after the enterprise has fulfilled its corporate income tax obligations, shall be exempted from personal income tax.

Section 2

OTHER CASES ELIGIBLE FOR TAX EXEMPTION OR REDUCTION

Article 40. Tax reduction due to natural disasters, epidemics, fires, accidents, or severe diseases

1. Taxpayers facing difficulties caused by natural disasters, epidemics, fires, accidents or severe diseases which affect their tax payment ability may be considered for tax reduction corresponding to the extent of their damage but not exceeding the personal income tax amount payable.

The determination of severe diseases shall comply with the regulations of the Minister of Health.

2. Consideration of tax reduction shall be conducted on an annual basis. Taxpayers facing difficulties due to natural disasters, epidemics, fires, accidents, or severe diseases in any year shall be considered for reduction of the tax payable for that year.

3. The tax amount payable serving as the basis for consideration of tax reduction is the total personal income tax amount payable by the taxpayer in the tax year, including:

a) Personal income tax payable according to the tax period for income from business activities and income from salaries and wages of individuals;

b) Personal income tax paid or withheld on income from capital investment, income from capital transfer, income from real estate transfer, income from prize winnings, income from copyright, income from commercial franchising, income from inheritances, income from gifts, and other income.

4. The basis for determining the extent of damage eligible for tax reduction is the total actual expenses incurred to remedy the damage and to pay medical examination and treatment expenses, minus (-) any compensation or insurance proceeds received from insurers (if any) or from organizations or individuals causing the damage (if any).

5. The reduced tax amount shall be determined as follows:

a) Where the tax amount payable in the year is greater than the extent of damage, the reduced tax amount shall equal the extent of damage;

b) Where the tax amount payable in the year is less than the extent of damage, the reduced tax amount shall equal the tax amount payable.

6. The dossier and procedures for consideration of tax reduction under this Article shall comply with the law on tax administration.

Article 41. Tax exemption for individuals who are high-quality human resources in the digital technology industry

1. Personal income tax exemption for 5 years shall be granted for income from salaries and wages of individuals who are high-quality human resources in the digital technology industry in the following cases:

a) Income from projects on digital technology industry activities in concentrated digital technology parks;

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

c) Income from activities involving the training of human resources for the digital technology industry.

2. The determination of high-quality human resources in the digital technology industry as the basis for the tax exemption prescribed in Clause 1 of this Article shall comply with the law on the digital technology industry and other relevant laws.

a) The determination of high-quality human resources in the digital technology industry shall comply with Articles 5, 6, 7, 8, 9, and 10 of Decree No. 353/2025/ND-CP detailing a number of articles, and providing measures to organize and guide the implementation, of the Law on the Digital Technology Industry and the law on digital technology industry;

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

3. The tax exemption period shall be calculated continuously from the month in which the tax-exempt income first arises. Where tax-exempt income arises during a month, the tax exemption period shall be counted as a full month.

4. Where an individual has both tax-exempt income from salaries and wages under Clause 1 of this Article and other income from salaries and wages, the exempt personal income tax amount shall be determined as follows:

5. Tax withholding and tax finalization shall comply with Articles 50 and 51 of this Decree.

Article 42. Tax exemption for individuals being hi-tech personnel

1. Personal income tax exemption for 5 years shall be granted for income from salaries and wages of individuals being hi-tech personnel in the following cases:

a) Income from research and development activities relating to high technologies on the List of high technologies prioritized for development investment, or the List of high-tech products encouraged for development in accordance with the law on high technology;

b) Income from research and development activities relating to strategic technologies on the List of strategic technologies or the List of strategic technology products in accordance with the law on high technology.

2. The determination of high-tech personnel engaged in research and development activities relating to high technologies or strategic technologies included in the List of high technologies prioritized for development investment, the List of strategic technologies, or the List of strategic technology products shall comply with the law on high technology. Below are some specific cases:

a) The determination of high-tech personnel prescribed in Clause 1 of this Article as the basis for granting the tax exemption shall comply with Article 13 of the Law on High Technology and its guiding documents;

b) The determination of research and development activities relating to high technologies or strategic technologies on the List of high technologies prioritized for development investment, the List of high-tech products encouraged for development, the List of strategic technologies, or the List of strategic technology products shall comply with Articles 11 and 12 of the Law on High Technology and its guiding documents.

3. The tax exemption period shall be calculated continuously from the month in which the tax-exempt income first arises. Where tax-exempt income arises during a month, the tax exemption period shall be counted as a full month.

4. Where an individual has both tax-exempt income from salaries and wages under Clause 1 of this Article and other income from salaries and wages, the exempt personal income tax amount shall be determined as follows:

5. Tax withholding and tax finalization shall comply with Articles 50 and 51 of this Decree.

Article 43. Tax exemption for the transfer of certificates of open-ended funds

1. Personal income tax exemption shall be granted for income from the transfer of certificates of open-ended funds established in accordance with the law on securities, provided that, at the time of transfer, such certificates have been held for 2 years or more from the date of purchase.

2. Where an individual acquires open-end fund certificates before July 01, 2026, and transfers such fund certificates on or after July 01, 2026, he/she shall be exempted from personal income tax on the transfer if the fund certificates have been held for at least 2 years from the date of purchase.

3. Where an individual transfers fund certificates acquired at different times, the two-year holding period prescribed in Clauses 1 and 2 of this Article shall be determined in accordance with the first-in, first-out principle, whereby the fund certificates purchased first shall be deemed to have been transferred first.

Article 44. Tax reduction for dividends received by investors from securities investment funds and real estate investment funds

A 50%-reduction of personal income tax shall be granted for dividends received by individual investors from securities investment funds and real estate investment funds established in accordance with the Law on Securities for a period of 5 years, from July 01, 2026, to the end of June 30, 2031.

Chapter IV

TAX BASES FOR RESIDENTS’ INCOME

Section 1

INCOME FROM BUSINESS ACTIVITIES

Article 45. Personal income tax on income from business activities

1. Residents engaged in production or business activities shall pay tax in accordance with Article 7 of the Law on Personal Income Tax, Decree No. 68/2026/ND-CP on tax policies and tax administration applicable to business households and business individuals, and the amending and supplementing documents.

2. The tax rates applicable to taxable turnover prescribed in Clause 3, Article 7 of the Law on Personal Income Tax are detailed according to the list of business sectors and trades set out in the Appendix to this Decree.

Section 2

INCOME FROM SALARIES OR WAGES

Article 46. Personal income tax on income from salaries and wages

1. Personal income tax on the income from salaries and wages of residents shall be determined by multiplying the assessable income prescribed in Clause 2 of this Article, regardless of income payers and income recipients, by the tax rates under the partially progressive tariff prescribed in Article 9 of the Law on Personal Income Tax. The tax amount for each tax bracket shall be determined by multiplying the portion of assessable income falling within that tax bracket by the corresponding tax rate applicable to that tax bracket.

2. Assessable income for income from salaries or wages is the total taxable income specified in Article 8 of this Decree received by a taxpayer during a tax period, minus (-) the following amounts:

a) Social insurance, health insurance, unemployment insurance and professional liability insurance premiums applicable to certain sectors and occupations requiring employees’ participation in compulsory insurance, voluntary social insurance premiums in accordance with the Law on Social Insurance, voluntary health insurance premiums in accordance with the Law on Health Insurance; supplementary pension insurance premiums in accordance with the Law on Social Insurance; voluntary pension insurance premiums and life insurance premiums.

The supplementary pension insurance premiums under the Law on Social Insurance, premiums for voluntary pension insurance, and life insurance to be deducted from income upon determining assessable income under this Point shall not exceed VND 3 million/month for all such forms of insurance, including premiums paid by the employer for employees and those paid by employees themselves (if any).

For a resident in Vietnam who earns income from salaries or wages overseas and has paid premiums of compulsory insurance, such as social insurance, health insurance, unemployment insurance and compulsory professional liability insurance for some professions, as required by the law of the country in which this individual buys such insurance, he/she may have those insurance premiums deducted from his/her taxable income when determining assessable income from salaries or wages.

Premiums for social insurance, health insurance, unemployment insurance, and professional liability insurance for occupations and trades requiring employees’ participation in compulsory insurance, as well as premiums for supplementary pension insurance under the Law on Social Insurance and premiums for voluntary pension insurance, shall be deductible from the taxable income of the year in which such premiums are made.

The basis for determining deductible income shall be copies of payment receipts (or premium payment receipts) issued by the insurance organization, supplementary pension fund, or insurance enterprise, together with the income payer's confirmation of the insurance amounts withheld or paid on the taxpayer's behalf (where the income payer makes such payments on behalf of the taxpayer);

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

c) Charity and humanitarian contributions and other deductions prescribed in Article 11 of the Law on Personal Income Tax and Article 49 of this Decree.

3. The time of determination of assessable income from salaries and wages is the time when the employer pays salaries and wages to the taxpayer or when the taxpayer receives the income, including monetary and non-monetary benefits, allowances, subsidies, and other income prescribed in Article 8 of this Decree during the tax period.

4. Where an organization or individual paying income from salaries and wages to an individual does not include personal income tax in such income, the conversion of tax-exclusive income into assessable income shall be carried out as follows:

a) The income serving as the basis for conversion into assessable income is the net income actually received plus (+) benefits paid on behalf of the income recipient by the income payer (if any), less (-) deductible amounts. Where the employer applies a “hypothetical tax” policy or a “hypothetical housing” policy, the income serving as the basis for conversion into assessable income shall exclude the “hypothetical tax” and “hypothetical housing” amounts. Where the benefits paid on behalf of the income recipient include housing rental, the housing rental included in the income serving as the basis for conversion shall be the amount actually paid, but shall not exceed 15% of the total taxable income arising at the income payer, regardless of the place where the income is paid (excluding the actual housing rental, electricity, water, and accompanying services incurred, and the “hypothetical housing” amount (if any));

b) The formula for determining the income serving as the basis for conversion is as follows:

Where:

Net income actually received means the monthly salaries and wages received by the employee exclusive of tax, excluding income not included in taxable income prescribed in Article 8 of this Decree and tax-exempt income prescribed in Section 1, Chapter III of this Decree.

Benefits paid on behalf of the income recipient mean monetary or non-monetary benefits paid on behalf of the employee by the employer in accordance with this Decree.

Deductible amounts include: Family circumstance-based reductions; deductions for social insurance, health insurance, unemployment insurance, and professional liability insurance premiums for occupations and trades requiring employees’ participation in compulsory insurance; voluntary social insurance premiums under the Law on Social Insurance; voluntary health insurance premiums under the Law on Health Insurance; supplementary pension insurance premiums under the Law on Social Insurance; premiums for voluntary pension insurance and life insurance, not exceeding the limit prescribed at Point a, Clause 2 of this Article; deductions for charity and humanitarian contributions; and other deductions prescribed in Article 49 of this Decree.

c) Where an individual is subject to tax finalization in accordance with the regulations, the taxable income for the year shall be total taxable income of each month, determined on the basis of the converted assessable income. Where an individual receives tax-exclusive income from multiple income payers, the taxable income for the year shall be total monthly taxable income received from all income payers during the year.

Article 47. Family circumstance-based reductions

1. A resident shall be entitled to deduct from taxable income derived from salaries and wages the family circumstance-based reductions prescribed in Clause 1, Article 10 of the Law on Personal Income Tax, including:

a) Reduction for the taxpayer specified at Point a, Clause 1, Article 10 of the Law on Personal Income Tax;

b) Reduction for each dependant prescribed at Point b, Clause 1, Article 10 of the Law on Personal Income Tax.

2. Persons to be identified as dependants of taxpayers and grounds for dependant identification are as follows:

a) Under-18 children (including blood children, lawfully adopted children, children of wife or husband);

b) Children (including blood children, lawfully adopted children, children of wife or husband) aged 18 years or older in the following cases: Persons lacking civil act capacity; persons with disabilities; or persons incapable of working;

c) Children (including blood children, lawfully adopted children, children of wife or husband) attending university, college, professional secondary education, or vocational training, including children aged 18 years or older who are attending upper secondary education (including the period from June through September of Grade 12 while awaiting examination results), having no income or having average monthly income during the year from all income sources not exceeding the income threshold prescribed by the Minister of Finance;

d) The taxpayer's spouse; blood parents, stepparents, adoptive father, lawfully adoptive parents and parents-in-law of taxpayers;

dd) Other helpless persons whom the taxpayer is obliged to nurture directly, including the taxpayer's biological siblings; the taxpayer's paternal grandparents or maternal grandparents; the taxpayer's paternal aunt, maternal aunt, maternal uncle, paternal uncle and paternal elder uncle; the taxpayer's biological nephews and nieces; and other persons whom the taxpayer is obliged to nurture directly.

The dependants prescribed at this Point are individuals living with the taxpayer, and whom the taxpayer is obligated to nurture in accordance with Articles 104, 105 and 106 of the Law on Marriage and Family and other relevant laws.

3. An individual prescribed at Point d or Point dd, Clause 2 of this Article shall qualify as a dependant only if the following conditions are satisfied:

a) For individuals of working age, the following conditions must be satisfied concurrently: Being incapable of working and having no income, or having average monthly income during the year from all income sources not exceeding the level prescribed by the Minister of Finance;

b) For individuals beyond working age, having no income or having average monthly income during the year from all income sources not exceeding the level prescribed by the Minister of Finance.

4. Persons incapable of working specified in this Article are persons whose working capacity reduction rate is 81% or more, as determined in accordance with law.

5. Taxpayers shall themselves register the number of their dependants proved by lawful papers and be held responsible before law for the accuracy of the registration and the declared income of the dependants.

6. The dossiers for determining dependants eligible for family circumstance-based reductions shall comply with the regulations of the Minister of Finance

Article 48. Principles for family circumstance-based reductions

1. Family circumstance-based reductions for the taxpayer

a) Where a taxpayer has income from salaries and wages from multiple sources, the taxpayer shall, at any given time, elect one income payer at which to claim the family circumstance-based reduction for himself/herself (calculated on a full-month basis);

b) Where, during the tax year, the individual has not claimed the reduction for himself/herself, or has claimed such reduction for less than 12 months, he/she shall be entitled to claim the reduction for the full 12 months upon tax finalization in accordance with the regulations;

c) A foreign individual who is a resident in Vietnam shall be entitled to the reduction for himself/herself from January of each year or, where the individual first arrives in Vietnam, from the month of arrival in Vietnam until the month in which the labor contract terminates and the individual departs from Vietnam during the tax year (calculated on a full-month basis).

2. Family circumstance-based reductions for dependants

a) A taxpayer shall be entitled to claim family circumstance-based reductions for dependants if the taxpayer has made tax registration and registration of dependants. The deadline for registering dependants together with the dossiers proving the status of dependants is December 31 of the tax year, and such registration shall remain effective for subsequent years unless there is any change.

Where a taxpayer has not claimed the family circumstance-based reduction for a dependant during the tax year, the reduction shall be allowed from the month in which the nurture obligation arises;

b) Upon registering a dependant for the family circumstance-based reduction, the taxpayer shall be provisionally entitled to the family circumstance-based reduction during the year from the registration of the dependant (calculated on a full-month basis).

Where multiple taxpayers share responsibility for nurturing the same dependant, they shall reach an agreement on registration of this dependant for one among them for the tax year. Where there is any change to such agreement, the change shall apply from the subsequent tax period.

c) Where a taxpayer has income from salaries and wages from multiple sources, the taxpayer may choose the income payer at which to register the family circumstance-based reduction for dependants and shall ensure that each dependant may be counted only once for tax reduction for a taxpayer in a tax year.

Article 49. Deductions for charity or humanitarian donations and other deductions

1. Residents are entitled to reduction from taxable income, prior to the calculation of tax on income from salaries and wages, with respect to the following amounts:

a) Donations to organizations or establishments that care for or nurse children in special plights, people with disabilities or helpless elderly people;

b) Donations to charity funds, humanitarian funds or study promotion funds;

c) Donations to organizations with the function of donation mobilization that are established and operate in accordance with law.

Organizations, establishments and funds specified in this Clause must be those licensed or recognized by competent state agencies and operating for charity, humanitarian, study promotion or not-for-profit purposes.

The dossier for determining the donations specified in this Clause is a copy of the lawful receipt of the organization, establishment or fund, or a non-cash payment document made through a credit institution.

2. A taxpayer who is a resident is entitled to reduction from taxable income, before calculation of tax on income from salaries and wages, with respect to healthcare and education-training expenses incurred by the taxpayer and the taxpayer's dependants, including:

a) Expenses for medical examination and treatment at domestic medical establishments falling within the list covered by health insurance, not exceeding VND 23 million per year in total;

b) Education-training expenses incurred at domestic education and training institutions, not exceeding VND 24 million per year in total, specifically: Tuition fees for preschool education, general education, vocational education and higher education in accordance with the law on education and training, and other professional skills training at education and training institutions.

3. The expenses for which a taxpayer is entitled to reduction under Clause 2 of this Article must satisfy the following conditions:

a) They are supported by invoices and documents in accordance with law. In case of healthcare expenses, they must additionally be supported by a statement of medical examination and treatment expenses used by medical examination and treatment establishments in accordance with the regulations of the Minister of Health;

b) The invoices and documents serving as the basis for the reduction must contain the information of the taxpayer or the taxpayer's dependant;

c) They have not been paid from other sources, including sponsorship, financial support, or payments made on behalf of the taxpayer by organizations or individuals, the state budget, the social insurance fund, health insurance, or insurance payments in any form.

4. Where a tax reduction is applied to healthcare expenses under Article 40 of this Decree, or where healthcare or education-training expenses specified at Points b, g and i, Clause 4, Article 8 of this Decree arise, such expenses shall not be taken into account for the reductions prescribed in Clause 2 of this Article.

5. Charity or humanitarian donations and other deductible amounts made in a year are deductible from taxable incomes of that year and may not be carried forward for deduction from taxable incomes of the subsequent tax year. Where an individual has completed tax finalization but has not yet obtained the invoices or documents required to substantiate the healthcare or education-training expenses prescribed in Clause 3 of this Article, the adjustment of the tax liability shall comply with the law on tax administration.

Article 50. Tax withholding

1. Except for the subjects prescribed in Clauses 2 and 3 of this Article, when income payers pay income to taxpayers, they shall withhold tax and remit the tax amount withheld from individuals based on:

a) Monthly assessable income (for income amounts paid, or paid on behalf of individuals, by organizations or individuals);

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

2. Organizations or individuals paying salaries, wages, remuneration, or other payments to residents who do not sign contracts or sign labor contracts of less than 3 months (including cases of payment of salaries or other income to employees whose labor contracts have terminated), with each income payment of VND 5 million or more, shall withhold tax and remit the tax amount withheld from individuals at the rate of 10% on income before paying such income to the individuals. Where each income payment is less than VND 5 million, the income payer may withhold tax at the rate of 10% at the individual's request.

Where an individual has only income subject to tax withholding at the above rate but estimates that his/her total taxable income after family circumstance-based reductions does not reach the tax payment threshold, the income-earning individual shall make a commitment, using the form issued together with the documents guiding tax administration, and submit it to the income payer for the latter to use as the basis for temporarily not withholding personal income tax. The individual making the commitment shall take responsibility for his/her commitment. Where fraud is detected, the individual shall be handled in accordance with the law on tax administration and other relevant laws.

Based on the individual's commitment, the income payer shall not withhold tax. At the end of the tax year, the income payer shall nevertheless compile a list of individuals whose income has not reached the tax withholding threshold, together with their income, in accordance with the form issued together with the documents guiding tax administration, and submit it to the tax office.

For residents entering into labor contracts of 3 months or more, the income payer shall withhold tax in accordance with the partially progressive tariff prescribed in Clause 1 of this Article, including where a resident enters into labor contracts of 3 months or more with multiple employers.

3. Below are some specific cases:

a) Where an employee is awarded bonus stocks or purchases stocks at a preferential price under an employee stock ownership plan (ESOP), such stocks shall not be included in taxable income from salaries and wages upon receipt. Upon deriving income from the transfer of such stocks, the individual shall pay personal income tax on income from salaries and wages. At the same time, upon the transfer, the individual shall pay tax on income from securities transfers in accordance with Article 54 of this Decree. Where stocks of the same class are transferred, the individual shall continue paying personal income tax on income from salaries and wages until all bonus stocks and ESOP stocks have been exhausted.

The basis for determining the taxable income in respect of bonus stocks prescribed at this Point is the amount paid to the employee as recorded in the accounting books of the income payer at the time the bonus stocks are awarded. Where the amount paid to the employee as recorded in the accounting books of the income payer cannot be determined, the taxable income shall be determined by multiplying the actual number of bonus stocks received by the par value thereof. Where the transfer price of the stocks is lower than the par value, the personal income tax on the income from the bonus stocks shall be calculated based on the market price at the time of transfer.

The basis for determining the taxable income in respect of ESOP stocks prescribed at this Point is the amount paid to the employee as recorded in the accounting books of the income payer at the time the ESOP stocks are issued. Where the amount paid to the employee as recorded in the accounting books of the income payer cannot be determined, the taxable income shall be determined by multiplying the actual number of stocks received by their par value, less (-) the amount paid by the employee to purchase the ESOP stocks. Where the resulting difference is negative, the individual shall not be liable to pay personal income tax on income from salaries and wages in respect of the ESOP stocks.

An individual receiving bonus stocks or ESOP stocks shall fully declare the origin and the actual value received of such bonus stocks or ESOP stocks when depositing the stocks with the securities company or commercial bank where the individual maintains a securities depository account. The securities company or commercial bank where the individual opens the securities depository account shall separately monitor the individual's bonus stocks and ESOP stocks, and shall withhold tax and remit the tax withheld at the rate of 10% corresponding to the taxable income from such bonus stocks and ESOP stocks. The individual shall aggregate the income from bonus stocks and ESOP stocks into taxable income from salaries and wages for the tax year to carry out personal income tax finalization in accordance with the regulations.

b) In case employers purchase for their employees life insurance (excluding supplementary pension insurance and voluntary pension insurance) or other optional insurance with accumulated premiums from insurance enterprises established and operating in accordance with Vietnamese law, employees are not required to account insurance premiums as a taxable income from salaries and wages at the time the employer purchases the insurance. When insurance contracts become due, insurance enterprises shall withhold tax and remit the withheld tax amount at the rate of 10% of accumulated premiums paid by employers for their employees since July 01, 2013. For life insurance premiums paid from January 01, 2026, the accumulated premium amount shall be determined based on the portion exceeding the limit prescribed at Point a, Clause 2, Article 46 of this Decree. Where the accumulated premium is paid in installments, tax shall be withheld at the rate of 10% corresponding to each installment. The individual shall not be required to carry out tax finalization in respect of this income.

The employer shall determine the portion of life insurance premiums paid from January 01, 2026 that exceeds the limit prescribed at Point a, Clause 2, Article 46 of this Decree and provide such information to the insurance enterprise. Where an employee participates in supplementary pension insurance under the Law on Social Insurance, purchases voluntary pension insurance and life insurance, the maximum deductible amount of VND 3 million/month shall apply to the aggregate premiums to all such insurance schemes. The employer shall allocate the maximum deductible amount of VND 3 million/month among one or more insurance schemes selected by the employee.

The insurance enterprise shall separately monitor the portion of life insurance premiums and other optional insurance premiums purchased or contributed by the employer on behalf of the employee as the basis for calculating personal income tax.

In case employers purchase for their employees life insurance excluding supplementary pension insurance and voluntary pension insurance) or other optional insurance with accumulated premiums from insurance enterprises not established and operating in accordance with Vietnamese law but licensed to sell insurance in Vietnam, employers shall withhold tax and remit the tax withheld at the rate 10% of insurance premiums paid or contributed in excess of the limit prescribed at Point a, Clause 2, Article 46 of this Decree before paying incomes to their employees. The individual shall not be required to carry out tax finalization in respect of this income.

c) In case of a foreign individual coming to work in Vietnam, the income payer (including where the Vietnamese party reimburses salary or wage expenses to the foreign party) shall, based on the individual's period of working in Vietnam as stated in the labor contract or the document assigning the individual to work in Vietnam, withhold tax in accordance with the partially progressive tariff (for individuals working in Vietnam for 183 days or more during the tax year) or in accordance with Article 64 of this Decree (for individuals working in Vietnam for less than 183 days during the tax year). A resident who is a foreign individual and terminates his/her employment contract in Vietnam before departing from Vietnam shall finalize tax with the tax office, or authorize another organization or individual to carry out tax finalization on his or her behalf, and shall remain responsible for the personal income tax payable.

Article 51. Tax finalization

1. Income payers, and residents earning incomes from salaries or wages shall carry out annual tax finalization, except the following cases:

a) Individuals have payable tax amounts smaller than the paid amounts in the tax period without requesting tax refund or tax clearance against the subsequent period;

b) Individuals who have additional income from another source, where such income averages no more than VND 15 million per month during the year and personal income tax has been withheld by the income payer at the rate of 10% of the income as prescribed in Clause 2, Article 50 of this Decree, shall not be required to carry out tax finalization in respect of such income.

Where an individual chooses to carry out tax finalization directly with the tax office, the tax administration information system shall assist in aggregating all income from salaries and wages arising during the tax year and shall allow a deduction for the personal income tax withheld by the income payer during the tax year.

2. Except for the cases prescribed in Clause 3 of this Article, taxpayers may authorize the income payer to carry out tax finalization on their behalf in the following cases, including where they have not worked for the full 12 months during the year:

a) An individual has only one source of income from salaries and wages under a labor contract of 3 months or more with one organization and is actually working for that organization at the time of tax finalization, including where the employee is transferred from the former organization to the new organization due to the former organization undergoing merger, consolidation, division, separation or conversion of enterprise type, or where the former organization and the new organization belong to the same system;

b) An individual has only one source of income from salaries and wages under a labor contract of 3 months or more with one organization and is actually working for that organization at the time of tax finalization, and also has other income from which tax has been withheld as prescribed at Point b, Clause 1 of this Article.

3. Where, during the tax period, an individual applies for a tax reduction due to natural disasters, epidemics, fires, accidents or severe diseases as prescribed in Article 40 of this Decree, or incurs deductible expenses prescribed in Article 49 of this Decree and requests that such deductions be applied against income before tax is calculated, the taxpayer shall carry out tax finalization himself/herself.

4. Dossiers and procedures for tax finalization and tax finalization authorization shall comply with the law on tax administration.

Section 3

INCOME FROM CAPITAL INVESTMENT AND CAPITAL TRANSFER

Article 52. Personal income tax on income from capital investment

1. Personal income tax on income from capital investment of a resident shall be determined as the assessable income multiplied (x) by the tax rate of 5%.

2. The assessable income from capital investment means the taxable income from capital investment prescribed in Article 9 of this Decree that is received by the taxpayer on each occasion it arises.

3. The time for determining the assessable income from capital investment shall be the time when the income payer pays the income to the taxpayer, except for the cases prescribed in Clauses 4, 5 and 6 of this Article.

4. Where an individual receives dividends in the form of stocks, or an existing shareholder receives stocks issued from equity, the individual shall not be required to pay personal income tax on income from capital investment upon receipt of such stocks. Upon the transfer of such stocks, the individual shall pay personal income tax on the income from capital investment in respect of which no tax was paid at the time of receiving the stock dividends or the stocks issued from equity. At the same time, the individual shall pay personal income tax on income from securities transfers in accordance with the regulations. Where stocks of the same class are transferred, the individual shall continue paying personal income tax on income from capital investment until all stocks received as dividends and stocks issued from equity have been exhausted.

The assessable income from capital investment, in case of an individual receiving dividends in the form of stocks or an existing shareholder receiving stocks issued from equity, shall be the dividend value recorded in the accounting books or the actual number of stocks received multiplied (×) by the par value of such stocks. Where the transfer price of the stocks is lower than their par value at the time of transfer, personal income tax on income from capital investment shall be calculated based on the market price at the time of transfer.

5. In case of income in the form of profits retained to increase capital, the individual shall not be required to pay personal income tax on income from capital investment at the time the profits are recorded as an increase in capital. Upon the transfer of capital, withdrawal of capital, or dissolution of the enterprise, the individual shall pay personal income tax on income from capital investment, including the portion representing the value of the profits recorded as an increase in capital in respect of which no tax was paid at the time the capital was increased. At the same time, the individual shall pay personal income tax on income from capital transfers in accordance with the regulations.

Where an individual transfers capital or withdraws part of the contributed capital, the individual shall pay personal income tax on income from capital investment until the amount is equal to the value of the profits retained to increase capital.

6. Where an individual receives income from offshore investments in any form, the time for determining the assessable income shall be the time when the individual receives such income.

Article 53. Personal income tax on income from capital transfer

1. Personal income tax on income from capital transfer of a resident specified in Clause 1, Article 10 of this Decree shall be determined as the assessable income multiplied (x) by the tax rate of 20% on each transfer. The assessable income from capital transfer is determined to equal the transfer price minus (-) the purchase price of the transferred capital and reasonable expenses related to the generation of income from capital transfer.

Where the purchase price and expenses related to the capital transfer cannot be determined, the personal income tax shall be determined by multiplying the transfer price by the tax rate of 2%.

2. Transfer price specified in Clause 1 of this Article means the sum of money receivable by an individual under a capital transfer contract.

Below are some specific cases:

a) Where the capital transfer contract provides for payment by installments or deferred payment, the transfer price shall not include installment interest or deferred payment interest in accordance with the payment period stipulated in the contract. The installment interest or deferred payment interest shall be subject to personal income tax on income from capital investment;

b) Where the transfer contract does not specify the payment price, or where the tax office has grounds to determine that the payment price is inconsistent with the popular market transaction price, the tax office may inspect and assess the transfer price in accordance with the law on tax administration.

3. Purchase price of the transferred capital specified in Clause 1 of this Article is the value of that capital amount at the time of capital transfer, which is the total of the initially contributed capital amount and additionally contributed or bought amounts.

Below are some specific cases:

a) Where the transferred capital is a capital contribution, the purchase price shall be the cumulative value of the capital contribution up to the time of the capital transfer, as determined on the basis of the accounting books, invoices, and documents;

b) Where the transferred capital is capital acquired by purchase, the purchase price shall be the value of the capital at the time of acquisition. The purchase price shall be determined based on the contract on the acquisition of the capital contribution and proof of payment.

4. Reasonable expenses related to the generation of income from capital transfer are actually paid expenses with lawful invoices and documents, including:

a) Expenses for completion of legal formalities required for the transfer;

b) Charges and fees paid by the transferor into the state budget under law;

c) Other expenses with supporting documents.

Where expenses related to the capital transfer are incurred overseas, the original supporting documents must be certified by a notary agency or an independent audit firm in the country where such expenses are incurred, and such documents must be translated into Vietnamese.

5. The time for determining the assessable income shall be the time when the transaction is completed in accordance with law, or the time when the procedures for changing the list of capital contributors are carried out, except for the case prescribed in Clause 6 of this Article.

6. An individual contributing capital in the form of a capital holding shall not be required to pay tax on income from capital transfers at the time of making such capital contribution. Upon the transfer of capital, withdrawal of capital, or dissolution of the enterprise, the individual shall pay personal income tax on income from capital transfer in respect of the capital holding for which no personal income tax was payable at the time of the capital contribution. At the same time, the individual shall pay personal income tax on income from capital transfers or income from capital investment (in case of capital withdrawal or dissolution of the enterprise) in accordance with the regulations.

For a capital holding contributed as capital, the assessable income from the capital transfer shall be the value of the capital holding as determined under the capital contribution contract at the time the capital contribution is made. Where an individual transfers or withdraws only part of the capital contribution, the individual shall pay personal income tax on income from capital transfers until the amount is equal to the value of such capital contribution.

Article 54. Personal income tax on income from securities transfer

1. Personal income tax on income from securities transfer specified in Clause 2, Article 10 of this Decree shall be determined as the transfer price multiplied (x) by the tax rate of 0.1% for each transfer.

2. The transfer price shall be determined as follows:

a) The actual selling price of the securities (being the matched price or negotiated price) as notified by the Stock Exchange, for securities listed or registered for trading on a Stock Exchange;

b) The transfer price stated in the transfer contract or actual transfer price or price recorded in accounting books of the unit whose securities are transferred at the time of making the latest financial statement in accordance with the accounting law effective before the time of transfer, for securities other than those specified at Point a of this Clause.

3. The time for determining the assessable income shall be the time when the transaction is completed in accordance with law, except for the case prescribed in Clause 4 of this Article, specifically as follows:

a) For securities listed or registered for trading on a Stock Exchange, it shall be the time when the taxpayer receives the income from the securities transfer;

b) For securities of a public company that are not traded on a Stock Exchange and whose ownership is transferred solely through the transfer system of the Vietnam Securities Depository and Clearing Corporation, it shall be the time when ownership of the securities is transferred at the Vietnam Securities Depository and Clearing Corporation;

c) For securities other than those specified above, it shall be the time when the securities transfer contract takes effect.

4. An individual contributing capital in the form of securities shall not be required to pay personal income tax on income from securities transfers at the time of making such capital contribution. Upon the transfer of capital, withdrawal of capital, or dissolution of the enterprise, the individual shall pay personal income tax on income from securities transfer in respect of the securities contributed as capital. At the same time, the individual shall pay personal income tax on income from capital transfers or income from capital investment (in case of capital withdrawal or dissolution of the enterprise) in accordance with the regulations.

The assessable income from the transfer of securities contributed as capital shall be the value of the securities as determined under the capital contribution contract at the time the capital contribution is made. Where an individual transfers capital or withdraws part of the capital contribution, the individual shall pay personal income tax on income from securities transfers until the value of the amount is equal to the value of the capital contribution made in the form of securities.

5. The determination of income from the transfer of derivative securities shall be made in accordance with the law on securities and other relevant laws. The Minister of Finance shall prescribe the personal income tax applicable to income from the transfer of derivative securities.

Article 55. Tax withholding, tax declaration and payment on behalf of taxpayers for income from capital investment

1. Organizations or individuals paying income from capital investment prescribed in Article 52 of this Decree shall withhold personal income tax before making payment to individuals, except for the case prescribed in Clause 2 of this Article.

2. For an individual receiving dividends in the form of stocks, or an existing shareholder receiving stocks issued from equity as prescribed in Clause 4, Article 52 of this Decree, the organization prescribed in Clause 4 of this Article shall declare tax on behalf of, and pay tax on behalf of, the individual with respect to income from capital investment when the individual transfers securities of the same class. Where the organization responsible for declaring tax on behalf of, and paying tax on behalf of, the individual has been dissolved or declared bankrupt but has not yet made such tax declaration or tax payment on behalf of the individual, the individual shall declare and pay tax in accordance with the regulations.

3. For an individual whose capital holding has been increased, the organization in which the individual holds the capital contribution shall declare tax on behalf of, and pay tax on behalf of, the individual with respect to income from capital investment when the individual transfers capital, withdraws capital, or upon the dissolution of the enterprise. Where the organization responsible for declaring tax on behalf of, and paying tax on behalf of, the individual has been dissolved or declared bankrupt but has not yet made such tax declaration or tax payment on behalf of the individual, the individual shall declare and pay tax in accordance with the regulations.

4. The organizations responsible for declaring tax on behalf of, and paying tax on behalf of, taxpayers as prescribed in Clause 2 of this Article are specified as follows:

a) For securities traded through the trading system of the Stock Exchange, the organization responsible for declaring tax on behalf of, and paying tax on behalf of, taxpayers shall be the securities company or commercial bank at which the individual opens the securities depository account, or the fund management company to which the individual entrusts the investment portfolio.

b) For securities not traded through the trading system of the Stock Exchange, the organizations responsible for declaring tax on behalf of, and paying tax on behalf of, taxpayers shall be: the securities company or commercial bank at which the individual opens the securities depository account, for securities of public companies centrally registered at the Vietnam Securities Depository and Clearing Corporation; the securities company authorized to manage the register of shareholders, for securities of a joint-stock company that is not yet a public company, but is authorized by the securities issuer to manage its register of shareholders; or the securities issuer, for securities other than those specified at this Point.

5. The dossier and procedures for tax withholding, tax declaration on behalf of taxpayers, and tax payment on behalf of taxpayers shall comply with the law on tax administration.

Article 56. Tax withholding, tax declaration and payment on behalf of taxpayers for income from capital or securities transfer

1. An individual deriving income from capital transfers prescribed in Article 53 of this Decree shall declare and pay tax in accordance with the regulations, except for the case prescribed in Clause 5 of this Article.

2. With respect to income from securities transfers prescribed in Article 54 of this Decree, the organizations prescribed in Clause 4 of this Article shall withhold tax and remit the tax withheld at the rate of 0.1% of the transfer price.

3. In case of capital contributions made in the form of a capital holding or securities, the organization receiving the capital contribution shall declare tax on behalf of, and pay tax on behalf of, the individual with respect to income from capital transfers or securities transfers when the individual transfers capital, withdraws capital, or upon the dissolution of the enterprise. Where the organization responsible for declaring tax on behalf of, and paying tax on behalf of, the individual has been dissolved or declared bankrupt but has not yet made such tax declaration or tax payment on behalf of the individual, the individual shall declare and pay tax in accordance with the regulations.

4. Tax withholding organization

a) For securities traded through the trading system of the Stock Exchange, the organization responsible for withholding tax and remitting the tax withheld shall be the securities company or commercial bank at which the individual opens the securities depository account, or the fund management company to which the individual entrusts the investment portfolio;

b) For securities not traded through the trading system of the Stock Exchange: The organization responsible for withholding tax and remitting the tax withheld shall be the securities company or commercial bank at which the individual opens the securities depository account, for securities of public companies centrally registered at the Vietnam Securities Depository and Clearing Corporation; or the securities company authorized to manage the register of shareholders, for securities of a joint-stock company that is not yet a public company, but is authorized by the securities issuer to manage its register of shareholders. For securities other than those specified at this Point, the individual transferring the securities shall declare tax directly with the tax office.

5. An individual shall fulfill the tax obligation in respect of the transferred capital before carrying out the procedures for changing the list of capital contributors or the register of shareholders of the enterprise in which the capital is transferred. Where the enterprise carries out procedures to change lists of capital contributors or shareholders in case of transfer of capital while the individual has not yet fulfilled tax obligations, the enterprise in which the individual transfers the capital shall pay tax for those transferors.

6. The dossier and procedures for tax withholding, tax declaration on behalf of taxpayers, and tax payment on behalf of taxpayers shall comply with the law on tax administration.

Section 4

INCOME FROM REAL ESTATE TRANSFER, PRIZE WINNINGS, COPYRIGHT ROYALTIES, COMMERCIAL FRANCHISING, INHERITANCES OR GIFTS AND OTHER INCOME

Article 57. Personal income tax on income from real estate transfer

1. Personal income tax on income from real estate transfer of a resident shall be determined as the transfer price multiplied (x) by the tax rate of 2%. Real estate transfer price is that stated in a transfer contract at the time of transfer.

2. In case of transfer of real property being land use rights, where the transfer price is not stated in the transfer contract or the transfer price stated in the contract is lower than the price determined according to the land price bracket and the land price adjustment coefficient (if any) prescribed by the land law at the time of determining the assessable income, the land transfer price shall be the land price determined according to the land price bracket and the land price adjustment coefficient (if any) prescribed by the land law.

3. In case of transfer of the rights to use land and land-attached assets (including houses, infrastructure facilities, and architectural works), where the transfer contract does not specify the prices of the land and land-attached assets, or the land price stated in the transfer contract is lower than the price determined according to the land price bracket and the land price adjustment coefficient (if any) prescribed by the land law, and the value of the houses, infrastructure facilities, and architectural works attached to the land is lower than the house registration fee calculation price prescribed by the provincial-level People's Committee at the time of determining the assessable income, then:

a) The value of the land use rights shall be determined in accordance with Clause 2 of this Article where the transfer contract does not specify the land price or the land price stated in the transfer contract is lower than the price determined according to the land price bracket and the land price adjustment coefficient (if any) prescribed by the land law;

b) The value of houses, infrastructure and architectural works attached to land is determined based on the price used for calculation of the house registration fee set by the provincial-level People’s Committee. In case this price is not available, such value is determined under the Ministry of Construction’s regulations on house classification, capital construction standards and norms, and the actual residual value of works on land.

The value construction works to be formed in the future is determined based on the ratio of contributed capital to the total contract value multiplied by (x) the price used for calculation of the construction work registration fee set by the provincial-level People’s Committee. In case the provincial-level People’s Committee has not set the unit price, the value is determined based on the work construction investment capital ratio announced by the Ministry of Construction and applicable at the time of submission of tax declaration dossiers to tax offices.

4. In case of sublease with a sublease unit rate stated in the sublease contract lower than that calculated based on the price in the land price bracket prescribed by the provincial-level People’s Committee multiplied (×) by the land price adjustment coefficient (if any) in accordance with the land law at the time of the sublease, the sublease rate shall be determined based on the land price in the land price bracket prescribed by the provincial-level People's Committee and the land price adjustment coefficient (if any).

5. The time of determining the assessable income from real estate transfer shall be determined as follows:

a) In case the transfer contract contains no agreement that the purchaser pays tax for the seller, the time of determining the assessable income is the time when the transfer contract takes effect in accordance with law;

b) In case the transfer contract contains an agreement that the purchaser pays tax for the seller, the time of determining the assessable income is the time of carrying out procedures for registration of real estate ownership and use rights;

c) Where an individual acquires a house to be formed in the future or land use rights associated with a construction work to be formed in the future by transfer, the time for determining the assessable income shall be the time when the individual files the tax declaration dossier with the tax office;

d) An individual contributing capital in the form of real estate shall not be required to pay tax on income from the transfer at the time of making capital contribution. Upon the transfer of capital, withdrawal of capital, or dissolution of the enterprise, the organization receiving the capital contribution shall declare tax on behalf of, and pay tax on behalf of, the individual with respect to income from the transfer of real estate contributed as capital. At the same time, the individual shall pay tax on income from capital transfers or income from capital investment (in the case of capital withdrawal or dissolution of the enterprise), in accordance with regulations.

The assessable income from the transfer of real estate contributed as capital shall be the value of the capital holding as determined under the capital contribution contract at the time the capital contribution is made. Where an individual transfers or withdraws part of the capital contribution, the individual shall pay personal income tax on income from real estate transfers until the value of the amount is equal to the value of the capital contribution made in the form of real estate.

Where the organization declaring tax on behalf of, and paying tax on behalf of, the individual specified at this Point has been dissolved or declared bankrupt but has not yet made such tax declaration or tax payment on behalf of the individual, the individual shall declare and pay tax in accordance with the regulations.

6. Below are some specific cases:

a) Where real estate is transferred under co-ownership, the tax liability shall be determined separately for each taxpayer in proportion to his/her ownership interest in the real estate. The ownership interest shall be determined based on lawful documents, including the initial capital contribution agreement; will; court decision on the division of property; or other lawful documents. Where no lawful documents are available, the tax liability of each taxpayer shall be determined on an average rate. The co-owners of the real estate may authorize one individual to act as their representative in paying tax on the income from the transfer of the real estate;

b) In case of an authorization under which the authorized person is vested with rights equivalent to ownership of the real estate in accordance with the civil law, the taxpayer shall be the authorizing individual.

In case of an authorization for the transfer of real estate under which the authorized person is entitled only to remuneration and is not vested with rights equivalent to ownership of the real estate in accordance with the civil law, tax shall be paid in accordance with Article 8 of this Decree;

c) Where an individual holding land use rights or ownership of a house uses such rights or ownership as security for the performance of an obligation to a credit institution or foreign bank branch and, upon the expiry of the payment period, is unable to repay the debt, the credit institution or foreign bank branch shall carry out the procedures for handling such secured property and shall, at the same time, declare tax on behalf of, and pay tax on behalf of, the individual before settling the individual's outstanding debts;

d) Where an individual holding land use rights or ownership of a house mortgages such rights or ownership to obtain a loan or to make payment to another organization or individual and subsequently transfers all (or part) of such real estate to repay the debt, the individual holding the land use rights or ownership of the house shall declare and pay personal income tax, or the organization or individual carrying out the transfer procedures on behalf of the individual shall declare tax on behalf of, and pay tax on behalf of, the individual before settling the outstanding debts;

dd) Where real estate is transferred by an individual to another organization or individual pursuant to a court judgment enforcement decision, the transferor shall declare and pay tax, or the organization or individual conducting the auction sale shall declare tax on behalf of, and pay tax on behalf of, the transferor. For an individual's real estate confiscated by a competent state agency and sold by auction with the proceeds remitted to the state budget in accordance with law, no declaration or payment of personal income tax shall be required;

e) Where individuals exchange houses or land with one another, other than exchanges of agricultural land for production purposes eligible for personal income tax exemption under Article 23 of this Decree, each individual exchanging the house or land shall declare and pay personal income tax.

Article 58. Personal income tax on income from prize winnings

1. Personal income tax on income from prize winnings of a resident shall be determined as assessable income multiplied (x) by the tax rate of 10%.

2. Assessable income from prize winnings is the prize value exceeding VND 20 million received by a taxpayer upon each winning occasion, regardless of the number of times of receiving prizes.

3. Time of determination of assessable income

The time of determination of assessable income from prize winnings is the time an organization or individual makes payment to the prize winner.

4. Below are some specific cases:

a) Where there is one prize with multiple winners, the assessable income shall be allocated among the prize recipients. The prize recipients shall present lawful documentary evidence. Where no lawful documentary evidence is available, the income from prize winnings shall be treated as the income of a single individual. Where an individual wins multiple prizes in a single game, the assessable income shall be determined based on the total value of all prizes won;

b) For lottery prizes, the assessable income shall be the portion of the prize amount exceeding VND 20 million in respect of each lottery ticket for a single drawing;

c) For promotional prizes awarded in kind, the assessable income shall be the portion of the value of the promotional item exceeding VND 20 million, converted into monetary value at the market price prevailing at the time the prize is received.

d) For prizes won through betting activities, the assessable income shall be the portion of the total prize value exceeding VND 20 million received by the participant.

Article 59. Personal income tax on income from copyright royalty

1. Personal income tax on income from copyright royalty of a resident shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from copyright royalty is an income amount exceeding VND 20 million under a contract that the taxpayer receives on each occasion on which the income arises, irrespective of the number of payments or the number of times the taxpayer receives such income. Where multiple contracts are executed with the same user in respect of the same intellectual property object or technology for the transfer, assignment, or licensing thereof, the assessable income shall be the portion of the total income under all such contracts exceeding VND 20 million.

Where the assigned, transferred, or licensed subject matter is under co-ownership, the assessable income shall be allocated among the individual co-owners. The allocation ratio shall be determined based on the certificate of ownership or use right issued by the competent state agency.

3. Time of determination of assessable income

The time for determining the assessable income from copyright royalty shall be the time when the organization or individual makes such payment to the taxpayer.

Article 60. Personal income tax on income from commercial franchising

1. Personal income tax on income from commercial franchising of a resident shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from commercial franchising is an income amount exceeding VND 20 million under a contract that the taxpayer receives on each occasion on which the income arises, irrespective of the number of payments or the number of times the taxpayer receives such income. Where multiple commercial franchise contracts are entered into in respect of the same commercial rights, the assessable income shall be the portion of the total income under all such commercial franchise contracts exceeding VND 20 million.

Where an individual grants a commercial franchise in accordance with the Commercial Law and the subject matter of the commercial franchise involves multiple individuals participating as franchisors, one individual representative authorized by the individuals entitled to the commercial franchising income shall be the taxpayer.

3. Time of determination of assessable income

The time of determination of assessable income from commercial franchising is the time an organization or individual pays income to a taxpayer.

Article 61. Personal income tax on income from inheritances or gifts

1. Personal income tax on incomes from inheritances or gifts of a resident shall be determined as assessable income multiplied (x) by the tax rate of 10%.

2. Assessable income from inheritances or gifts is the value of assets as inheritances or gifts exceeding VND 20 million received by a taxpayer upon each time of inheritance or gift receipt. The determination of the assessable income in respect of inherited or gifted property shall be based on the ordinary market transaction price of property of the same type or of equivalent property at the time the income arises.

3. Time of determination of assessable income

a) The time when the organization or individual presents gifts to the taxpayer or the time the taxpayer receives the inheritances or gifts, for income from inheritances or gifts;

b) The time of registration of the ownership or use rights to the inherited or gifted property, for income from inheritances and gifts in the form of property subject to ownership or use right registration.

4. Below are some specific cases:

a) For inheritances or gifts in the form of securities, the assessable income shall be determined at the time of registration of ownership or at the time the tax declaration dossier is filed with the tax office, specifically as follows:

For securities listed or registered for trading on a Stock Exchange, the value of the securities shall be determined based on the reference price on the Stock Exchange.

For securities other than those specified above, the value of the securities shall be determined based on the book value of the issuer of such securities as of the date of its most recent financial statements prepared in accordance with the law on accounting.

b) For inheritances or gifts in the form of capital holdings in organizations or business establishments, the assessable income shall be determined based on the book value as of the date of the most recent accounting records before the registration of ownership of the capital holding;

c) For inheritances or gifts in the form of real estate, the assessable income shall be determined as follows:

For the value of the land, it shall be determined based on the land price bracket and the land price adjustment coefficient (if any) prescribed by the land law at the time the individual carries out the procedures for registration of the use rights or ownership of the real estate.

For the value of houses, infrastructure facilities, and architectural works attached to the land, it shall be determined based on the house registration fee calculation price prescribed by the provincial-level People's Committee at the time the individual carries out the procedures for registration of the use rights or ownership of the real estate. In case this price is not available, such value is determined under the Ministry of Construction’s regulations on house classification, capital construction standards and norms, and the actual residual value of works on land.

d) For inheritances or gifts in the form of other property subject to registration of ownership or use rights, the assessable income shall be determined based on the prices of the assets or assets of the same kind (if any) which are used for calculating the registration fee at the time the individual carries out the procedures for registration of the ownership or use rights to the inherited or gifted property. In case an individual receives inheritances or gifts being imported assets and has to pay import-related taxes, the value of assets used for taxation is the price used for registration fee calculation at the time of asset ownership registration, except the tax amounts already paid at the stage of import.

Article 62. Personal income tax on other income

1. Personal income tax on other income of a resident specified in Clauses 1, 2 and 3, Article 16 of this Decree shall be determined as assessable income multiplied (x) by the tax rate of 5%. In which, assessable income is the income amount exceeding VND 20 million received by the taxpayer upon each time of transfer.

For income from the transfer of a vehicle registration plate obtained through auction, the assessable income is the portion of the transfer price (including the vehicle associated with the auctioned registration plate) exceeding VND 20 million, less (-) the residual value of the vehicle determined according to the registration fee calculation price at the time of the transfer.

2. Personal income tax on other income of a resident specified in Clause 4, Article 16 of this Decree shall be determined as the transfer price multiplied (x) by the tax rate of 0.1%.

3. The time of determination of assessable income is the time an organization or individual pays income to a taxpayer or the time a taxpayer receives income.

4. Tax withholding, tax declaration on behalf of, and tax payment on behalf of taxpayers shall be carried out in accordance with Article 67 of this Decree and the law on tax administration.

Chapter V

TAX BASES FOR NON-RESIDENTS’ INCOME

Article 63. Personal income tax on income from business activities

1. Personal income tax on income from business activities of a non-resident shall be determined as turnover from production and business activities specified in Clause 2, Article 20 of the Law on Personal Income Tax multiplied by the tax rate specified in Clause 3, Article 20 of the Law on Personal Income Tax.

2. Where a non-resident earns turnover from multiple production or business sectors or trades but is unable to separately determine the turnover attributable to each sector or trade, the highest personal income tax rate applicable to any sector or trade in which the individual actually operates shall apply to the total turnover.

3. The time for determining the assessable income from business activities shall be the time when the non-resident receives the income or the time when an invoice is issued for the sale of goods or provision of services.

4. Tax withholding, tax declaration on behalf of, and tax payment on behalf of taxpayers shall be carried out in accordance with Article 67 of this Decree and the law on tax administration.

Article 64. Personal income tax on income from salaries and wages

1. Personal income tax on income from salaries and wages of a non-resident shall be determined as the total salaries and wages received by the non-resident for job performance in Vietnam multiplied (x) by the tax rate of 20%.

2. Income from salaries and wages of a non-resident shall be determined in the same manner as taxable income from salaries and wages of a resident.

3. For a non-resident working simultaneously in Vietnam and abroad who is unable to separately determine the portion of income arising in Vietnam, the taxable income from salaries and wages arising in Vietnam shall be determined according to the following formula:

a) In case 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 regime prescribed by the Labor Code of Vietnam.

b) In case the foreign individual is present in Vietnam:

Other taxable income (before tax) arising in Vietnam specified at Points a and b of this Clause means other benefits, whether in cash or non-cash, that the employee receives in addition to salaries and wages and that are paid or paid on behalf of the employee by the employer.

4. The time for determining the assessable income from salaries and wages of a non-resident shall be the time when the organization or individual in Vietnam pays income to the non-resident or the time when the non-resident receives the income.

5. Tax withholding, tax declaration on behalf of, and tax payment on behalf of taxpayers shall be carried out in accordance with Article 67 of this Decree and the law on tax administration.

Article 65. Personal income tax on income from capital investment, capital transfer, real estate transfer, copyright royalty, commercial franchising, inheritances, gifts, and other income of non-residents

1. Personal income tax on income from capital investment, capital transfer, real estate transfer, copyright royalty, commercial franchising, inheritances, gifts, and other income of non-residents specified in 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 on behalf of, and tax payment on behalf of taxpayers shall be carried out in accordance with Articles 55, 56, 57 and 67 of this Decree and the law on tax administration.

Chapter VI

TAX PERIOD, TAX WITHHOLDING, TAX DECLARATION ON BEHALF OF, TAX PAYMENT ON BEHALF OF TAXPAYERS, TAX FINALIZATION, AND TAX REFUND

Article 66. Tax period

1. For residents, the tax period shall be determined as follows:

a) The tax period shall be the calendar year in respect of income from business activities and income from salaries and wages;

Where an individual satisfies the conditions for being a resident during a calendar year, the tax period shall be the calendar year.

Where an individual is present in Vietnam for fewer than 183 days during a calendar year but is present in Vietnam for 183 days or more within a continuous 12-month period from the date of first arrival in Vietnam, the first tax period shall be determined as the continuous 12-month period commencing from the date of first arrival in Vietnam. From the second year onward, the tax period shall be the calendar year, provided that the individual satisfies the conditions for being a resident during that calendar year. The outstanding tax payable for the second tax year shall be determined as follows:

Where:

b) Tax period upon each time of income generation is applicable to income from capital investment; income from capital transfer, including income from securities transfer; income from real estate transfer; income from prize winning; income from copyright royalty; income from franchising; income from inheritances or gifts; and other income.

2. For non-residents, the tax period shall be determined as follows:

Tax period upon each time of income generation is applicable to non-resident individuals.

Article 67. Tax withholding, tax declaration on behalf of taxpayers, and tax payment on behalf of taxpayers

1. Income payers (including operators of e-commerce platforms and other digital platforms having online ordering and payment functions; organizations entering into agency contracts for insurance, lottery, and multi-level marketing activities under fixed-price agency arrangements; organizations entering into contracts with individuals engaged in brokerage activities; organizations and individuals paying income to non-residents; and organizations and individuals in Vietnam reimbursing salaries and wages to foreign entities) shall, before making any income payment to an individual, withhold personal income tax and remit the amount withheld on behalf of the taxpayer, except for the income specified in Clause 4 of this Article.

The organizations specified in Clauses 2, 3, and 4, Article 55; Clauses 3 and 5, Article 56; Points b and d, Clause 5, and Points c, d, and dd, Clause 6, Article 57 of this Decree, as well as organizations engaged in business cooperation with individuals, shall declare and pay tax on behalf of taxpayers.

2. The amount of tax required to be withheld shall be determined based on the personal income tax payable and the provisional personal income tax payable in respect of income from salaries and wages in accordance with Chapters IV and V of this Decree.

The amount of tax required to be withheld, declared on behalf of, and paid on behalf of a resident deriving income from business activities as prescribed in Clause 1 of this Article shall be determined by applying the tax rates prescribed in Clause 3, Article 7 of the Law on Personal Income Tax to the taxable turnover arising at the organization. The determination of the amount of tax required to be withheld of individuals conducting business through e-commerce platforms or other digital platforms shall be carried out in accordance with the law on tax administration.

Where an income payer has not withheld tax during the year and, at the end of the year, the individual is determined to be liable for tax in accordance with law, the individual shall declare and pay tax on an annual basis.

3. The dossier and procedures for tax withholding, tax declaration on behalf of taxpayers, and tax payment on behalf of taxpayers shall comply with the law on tax administration.

4. The following categories of income shall not be subject to tax withholding, tax declaration on behalf of taxpayers, or tax payment on behalf of taxpayers:

a) Income from business activities of residents, except income from business activities conducted through operators of e-commerce platforms or digital platforms having online ordering and payment functions; income from business cooperation activities with organizations; income from acting as a fixed-price agent in insurance, lottery, or multi-level marketing activities; and income from brokerage activities performed under contracts entered into with organizations;

b) Income from capital transfers of residents, except as provided in Clauses 2, 3, and 5, Article 56 of this Decree;

c) Income from real estate transfers, except as provided at Points b and d, Clause 5, and Points c, d, and dd, Clause 6, Article 57 of this Decree;

d) Income from inheritances or gifts.

5. Where an individual receives income paid by an organization or individual that has not withheld tax, declared tax on behalf of the taxpayer, or paid tax on behalf of the taxpayer; where an individual receives income paid by a foreign organization that does not make tax registration in Vietnam; or in the cases specified in Clause 4 of this Article, the individual receiving the income shall declare and pay tax in accordance with the law on tax administration and this Decree.

Article 68. Tax finalization and tax refund

1. Personal income tax finalization shall be carried out in accordance with the law on tax administration and this Decree.

2. An individual shall be entitled to a tax refund in the following cases:

a) The amount of tax paid exceeds the amount of tax payable;

b) The individual has paid tax, but the individual's assessable income does not reach the threshold at which tax is payable;

c) Other cases as decided by competent state agencies.

3. Tax finalization and tax refund in respect of residents’ income from business activities shall be carried out in accordance with Decree No. 68/2026/ND-CP, amending documents thereto, and the law on tax administration.

4. Dossiers and procedures for tax finalization and personal income tax refund shall comply with the law on tax administration.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 69. Effect

1. This Decree takes effect from July 01, 2026. The applicable timeframes in certain specific cases shall be determined as follows:

a) The provisions relating to income from business activities and income from salaries and wages of residents shall apply from the 2026 tax period;

b) The provisions on mid-shift meal allowances and lunch allowances prescribed at Point g Clause 2 Article 8 of this Decree shall apply from July 01, 2026.

2. This Decree replaces the Government’s Decree No. 65/2013/ND-CP dated June 27, 2013, detailing a number of articles of the Law on Personal Income Tax and the Law Amending and Supplementing a Number of Articles of the Law on Personal Income Tax.

3. This Circular repeals:

a) Article 3 of the Government’s Decree No. 91/2014/ND-CP dated October 01, 2014, amending and supplementing a number of articles of the decrees on taxes;

b) Article 2 of the Government's Decree No. 12/2015/ND-CP dated February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes.

4. In case the legal documents referred to in this Decree are amended, supplemented or replaced, the amending, supplementing or replacing ones shall prevail.

Article 70. Transitional provisions

1. Deadlines for registering dependents and submitting dossiers evidencing dependents for tax periods up to and including the 2025 tax period shall comply with the legal documents on personal income tax in effect before the effective date of this Decree.

2. Where declarations and tax payments in respect of income from salaries and wages for the 2026 tax period have been made during the period from January 01, 2026 until before the effective date of this Decree in accordance with the legal documents on personal income tax applicable before the effective date of this Decree, taxpayers shall not be required to resubmit the monthly or quarterly tax declaration dossiers, but shall instead make the necessary adjustments in the 2026 annual tax finalization dossiers.

Article 71. Implementation responsibilities

1. The Minister of Finance shall detail articles and clauses as assigned in this Decree, and guide the implementation of this Decree within the functions and tasks according to the management requirements.

2. Ministers, heads of ministerial-level agencies, chairpersons of People’s Committees of provinces and centrally-run cities, and related organizations and individuals shall implement this Decree.

Appendix

LIST OF BUSINESS LINES SUBJECT TO PERSONAL INCOME TAX AT THE TAX RATE ON TURNOVER, APPLICABLE TO RESIDENTS WITH INCOME FROM BUSINESS ACTIVITIES

(Attached to the Government’s Decree No. 253/2026/ND-CP
dated June 30, 2026)