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

DECREE

Detailing a number of articles, and providing measures to organise and guide the implementation, of the Law on Personal Income Tax^[1]

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

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

At the proposal of the Minister of Finance;

The Government promulgates the Decree detailing a number of articles, and providing measures to organise 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, 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 organise and guide the implementation of the Law on Personal Income Tax regarding taxpayers who are resident individuals or non-resident individuals; taxable income and income amounts not included in taxable income; income eligible for tax exemption or reduction; conditions for tax exemption or reduction; tax bases for each type of income; conversion of taxable income; tax periods; tax withholding, tax declaration and tax payment on behalf of taxpayers; tax finalisation and tax refund; and effect.

Article 2. Subjects of application

This Decree applies to taxpayers, tax authorities, and other organisations and individuals related to the matters provided in Article 1 of this Decree.

Article 3. Taxpayers

1. Personal income tax payers are resident individuals who earn taxable income specified in Article 3 of the Law on Personal Income Tax within and outside the territory of Vietnam, and non-resident individuals who earn taxable income specified in Article 3 of the Law on Personal Income Tax within the territory of Vietnam.

2. The determination of resident individuals and non-resident individuals must comply with Articles 4 and 5 of this Decree.

Article 4. Resident individuals

A resident individual is an individual who satisfies one of the conditions specified in Clause 2, Article 2 of the Law on Personal Income Tax, specifically as follows:

1. Being present in Vietnam for 183 days or more in a calendar year or in 12 consecutive months from the first date of presence in Vietnam. For an individual entering or leaving Vietnam, the date of arrival shall be counted as one day and the date of departure shall be counted as one day; in case he/she enters and leaves Vietnam on the same day, such date shall be counted as one day of residence. The dates of arrival and departure of an individual shall be those certified by the immigration authority in his/her passport, laissez-passer or documents relating to the purpose of entry and exit upon his/her arrival in and departure from Vietnam.

An individual’s presence in Vietnam as referred to in this Clause is his/her physical presence in the territory of Vietnam.

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

a/ Having a place of registered permanent residence, which is:

A place where the individual habitually and stably resides for an indefinite period and has registered permanent residence in accordance with the law on residence, for Vietnamese citizens; or,

The place of permanent residence stated in the Permanent Residence Card or the place of temporary residence as declared upon applying for a Temporary Residence Card issued by a competent authority under the Ministry of Public Security, for foreigners;

b/ Having a rented dwelling for residential purpose in Vietnam in accordance with the housing law, with the term of the rent contract of 183 days or more in a tax year, specifically as follows:

An individual not yet having or not having a habitual place of residence as guided in Point a of this Clause, who has the total number of days of renting a dwelling for residential purpose under the rent contract(s) of 183 days or more in a tax year, shall also be regarded as a resident individual, even in case dwellings are rented at multiple locations. Rented dwellings for residential purpose include accommodation in hotels, guest houses, inns, lodging houses, workplaces or offices of agencies, regardless of whether the accommodation is rented by the individual or his/her employer.

3. In case an individual has a habitual place of residence in Vietnam as specified in Clause 2 of this Article but is actually present in Vietnam for fewer than 183 days in a tax year, and he/she cannot prove which country he/she is a resident individual of, he/she shall be regarded as a resident individual in Vietnam.

Proof that an individual is a resident individual of a foreign country shall be based on his/her certificate of residence. In case an individual is from a country or territory that has concluded with Vietnam an Agreement for the Avoidance of Double Taxation and the Prevention of Tax Evasion and that does not provide the issuance of a certificate of residence, he/she shall provide a copy of his/her passport as proof of his/her period of residence.

Article 5. Non-resident individuals

A non-resident individual referred to in Clause 3, Article 2 of the Law on Personal Income Tax is an individual who does not satisfy the conditions specified in Article 4 of this Decree.

Chapter II

INCOMES LIABLE TO PERSONAL INCOME TAX

Article 6. Taxable incomes

1. An individual’s taxable incomes include the types of income specified in Articles 7 thru 16 of this Decree, except tax-exempt incomes specified in Section 1, Chapter III of this Decree.

2. Scope of determination of taxable income of resident individuals and non-resident individuals:

a/ For resident individuals, taxable income is income generated within and outside the territory of Vietnam, regardless of where the income is paid and received;

b/ For non-resident individuals, taxable income is income generated within the territory of Vietnam, regardless of where the income is paid and received.

3. For a country with which the Socialist Republic of Vietnam has concluded an Agreement for the Avoidance of Double Taxation and the Prevention of Tax Evasion, the personal income tax amount paid abroad shall be deducted from the personal income tax amount payable in Vietnam in accordance with such Agreement.

Article 7. Incomes from business activities

Incomes from business activities as specified in Clause 1, Article 3 of the Law on Personal Income Tax include:

1. Income from goods and service production and business activities in accordance with law. Particularly, income from activities of households and individuals directly engaged in the production of crops, planted forests, livestock production, cultured or fished aquatic products not yet processed into other products or just having undergone ordinary preliminary processing, or salt production, is applicable only in case the conditions for tax exemption specified in Article 21 of this Decree are not fully satisfied.

2. Income from independent professional practice by individuals who possess licences or practice certificates and have made business registration in accordance with law.

3. Income from agency activities, including also 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 organisations or enterprises.

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

Article 8. Incomes from salaries and wages

Incomes from salaries and wages specified in Clause 2, Article 3 of the Law on Personal Income Tax include:

1. Salaries, wages and amounts of salary or wage nature received by employees from employers in any form, whether in cash or in kind.

2. Remuneration and benefits in cash or in kind received by individuals from organisations, individuals or employers in any form:

a/ Payments for participation in research themes, projects or schemes; royalties in accordance with the regulations on royalty regime; payments for participation in teaching activities; payments for participation in cultural and artistic performances, physical training and sports activities;

b/ Payments received for participation in boards of directors, supervisory boards, management councils, associations, trade societies, societies established in accordance with law, and other organisations;

c/ Remuneration received for the provision of services by individuals who have not made business registration or tax registration for business activities, regardless of whether they possess a licence or practice certificate;

d/ Membership fee and other service charge amounts paid for individuals for healthcare, recreation, sports, entertainment or beauty care. In case such services are used on a shared basis without indicating the name(s) of an individual or a group of individuals in the membership voucher or card, such service charges shall not be included in taxable income;

dd/ Lump-sum expense allowance for stationery, work-trip allowance, telephone service charge and work clothing for an individual, which exceeds:

The applicable lump-sum allowance level determined in accordance with documents of competent state agencies or the regulations of relevant agencies or organisations, for cadres, civil servants, public employees and persons working in state administrative agencies, public non-business units, Party organisations, mass organisations, societies and associations;

The applicable lump-sum allowance level conformable with the determination of deductible expenses upon the calculation of corporate income tax in accordance with the law on corporate income tax, for employees working in enterprises and other organisations engaged in production and business activities; or,

The lump-sum allowance level compliant with the regulations of relevant international organisations or representative offices of foreign organisations, for employees working in international organisations or representative offices of foreign organisations;

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

g/ Money amounts paid by employers to employees for mid-shift meals or lunches that exceed VND 1.2 million/person/month. In case employers organise mid-shift meals or lunches for employees in such forms as directly preparing meals, purchasing meal portions or providing meal vouchers, such amounts shall not be included in taxable income of individuals;

h/ House rental, and charges for electricity, water and accompanying services (if any)

In case an employee receives a benefit amount from housing built by the employer for incumbent employees, such amount shall not be included in the employee’s personal income tax-liable income, including also the charges for electricity, water and accompanying services (if any).

In case house rental, and charges for electricity, water and accompanying services (if any) are paid by the employer on behalf of the employee, the actually paid amount shall be included in the individual’s taxable income, which must not exceed 15% of the employee’s total taxable income generated at the employing unit, excluding house rental, and charges for electricity, water and accompanying services (if any);

i/ Bonuses in cash or in kind, including also bonuses in securities; bonuses from competitions or events organised by employers for employees. For bonuses in kind, conversion must comply with Article 17 of this Decree;

k/ Other benefit amounts paid by employers for employees, including also expenditure during days off and public holidays; expenditure for consultancy services and services relating to the performance of tax procedures for an individual or a group of individuals; and expenditure for hiring domestic workers, drivers or persons performing other household work under contracts.

3. Allowances, subsidies and other incomes, except:

a/ Monthly preferential subsidies and allowances and lump-sum subsidies in accordance with the law on preferential treatment of persons with meritorious service to the revolution;

b/ Monthly subsidies and lump-sum subsidies for persons who have participated in resistance wars, defending the Fatherland or performing international mission, and former youth volunteers who have accomplished their duties;

c/ National defence and security subsidies and allowances; subsidies and allowances for the armed forces;

d/ Allowances for hazardous and dangerous jobs and allowances in kind, for sectors, trades or jobs carried out at workplaces where exist hazardous or dangerous factors;

dd/ Attraction allowances and region-based allowances;

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

g/ Subsidies for occupational accidents and diseases, lump-sum subsidies for those giving birth or adopting children, subsidies for those suffering working capacity decrease, lump-sum pension subsidies, monthly survivorship allowances and other subsidies in accordance with the law on social insurance;

h/ Extraordinary hardship subsidies, unemployment subsidies, severance pay and job-loss subsidies in accordance with law.

In case an organisation or enterprise provides in its financial regulations, internal regulations, labour contracts or collective labour agreements severance pay or job-loss subsidies at a level higher than the statutory level, the actually paid amount exceeding the statutory level shall also not be included in the employee’s taxable income;

i/ Subsidies for persons entitled to social protection in accordance with the regulations on social protection;

k/ Service allowances for high-ranking leaders;

l/ Lump-sum subsidies for individuals moving to work in geographical areas with extremely difficult socio-economic conditions; lump-sum support for cadres and civil servants engaged in work relating to sovereignty over seas and islands in accordance with law. Lump-sum relocation subsidies for foreigners coming to reside in Vietnam, Vietnamese persons working abroad, and Vietnamese persons who have resided abroad on a long-term basis and return to Vietnam to work.

Particularly, lump-sum relocation subsidies for foreigners coming to reside in Vietnam, Vietnamese persons working abroad, and Vietnamese persons who have resided abroad on a long-term basis and return to Vietnam to work shall be stated in transfer or rotation decisions or documents, financial regulations, internal regulations, labour contracts or collective labour agreements;

m/ Allowances for village and hamlet healthcare workers;

n/ Sector-specific allowances.

The allowances and subsidies not included in taxable income as specified in this Clause shall be specified by competent state agencies in accordance with the regulations on preferential treatment of persons with meritorious service to the revolution, national defence, security, diplomacy, labour, social insurance, health, and education and training, and other relevant regulations. In case the received allowance or subsidy amount exceeds the statutory level, the excessive amount shall be included in the individual’s personal income tax-liable income, except the case specified in Point h of this Clause.

4. Incomes not of salary or wage nature and not included in personal income tax-liable income include:

a/ Bonuses accompanying titles conferred by the State; bonuses accompanying emulation titles and forms of commendation in accordance with the law on emulation and commendation; bonuses accompanying national prizes and international prizes recognised by the Vietnamese State; bonuses for technical improvements, innovations and inventions recognised by competent state agencies; and bonuses for detecting and reporting violations of law to competent state agencies;

b/ Money amounts provided as support by employers for the examination and treatment of terminal diseases for employees themselves and their relatives, including: biological children, adopted children and stepchildren; spouses; biological fathers and biological mothers; fathers-in-law and mothers-in-law; stepfathers and stepmothers; adoptive fathers and adoptive mothers.

The support amount not included in taxable income is the money amount actually provided by the employer as evidenced by invoices and documents, which must not exceed the amount of hospital fee paid by the employee or his/her relatives after deducting the amount (if any) paid by the insurance organisation.

The determination of terminal diseases must comply with the Minister of Health’s regulations;

c/ Money amounts received under regulations relating to the use of vehicles in state agencies, public non-business units, Party organisations or mass organisations; and vehicles for transporting employees from their places of residence to their workplaces and vice versa under regulations of their units;

d/ Money amounts received under the regulations on official residences in accordance with law;

dd/ Money amounts received in addition to salaries and wages for participating in or serving activities of the Party, mass organisations or the National Assembly, or for drafting, giving opinions on, appraising or verifying legal documents, resolutions or political reports; joining inspection and supervision delegations; meeting voters or receiving citizens; and amounts for clothing and other tasks directly serving the activities of the Office of the National Assembly, the Council for Ethnic Affairs and Committees of the National Assembly, National Assembly delegations, the Office of the Party Central Committee and Commissions of the Party Central Committee, Offices of municipal/provincial Party Committees, and Boards of municipal/provincial Party Committees;

e/ Airfare paid once a year by employers for foreign employees and Vietnamese employees working abroad, covering travel from Vietnam to the country of nationality of the foreign employee or the country where the foreign employee’s family resides and vice versa, or from the country where the Vietnamese employee works to Vietnam and vice versa;

g/ Tuition fees paid by employers for foreign employees’ children studying in Vietnam and children of Vietnamese employees working abroad who study overseas, from early childhood to upper secondary education;

h/ Money amounts paid by employers to purchase non-compulsory insurance products without premium accumulation for employees, including health insurance and term life insurance products (excluding return-of-premium term-life insurance products, for which the insurance participants do not receive any accumulated premium from participation in insurance, in addition to the sum insured or compensation paid by the insurance enterprise as agreed in the insurance contract.

The amount used for purchasing non-compulsory insurance products without premium accumulation from insurance enterprises established and operating not under Vietnam’s law but licensed to sell insurance in Vietnam shall not be included in personal income tax-liable income as specified in this Point;

i/ Expenditure paid by employers on behalf of employees for training courses for improvement of employees’ qualifications and occupational skills as relevant to their professional jobs or tasks or as planned by the employers;

k/ Payments made by employers to suppliers or employees for the transfer, rotation or assignment of employees to take working trips under decisions or documents on transfer, rotation or assignment of employees to take working trips, financial regulations, internal regulations, labour contracts or collective labour agreements, with supporting invoices and documents required under regulations;

l/ Income amounts received by individuals from donor associations or organisations as their members when participating in the creation of literary or artistic works for the performance of the State’s political tasks or under activity programmes in accordance with charters of such associations or organisations, provided the funding is sourced from the state budget or managed under the State’s regulations;

m/ Money amounts received from employers for funerals or weddings of employees or their families in accordance with the financial regulations, internal regulations, labour contracts or collective labour agreements of income payers, and consistent with the deductible level upon the determination of corporate income tax-liable income in accordance with the law on corporate income tax;

n/ Money amounts and benefits not of salary or wage nature that are received from trade unions’ financial resources in accordance with the Law on Trade Unions;

o/ Payments made under nutritional regimes and specific regimes for the care and protection of women’s health and physiological well-being as specified in Articles 5 and 8 of Decree No. 349/2025/ND-CP providing regimes and policies applicable to members of sports teams participating in centralised training courses and competitions.

Article 9. Incomes from capital investment

Incomes from capital investment as specified in Clause 3, Article 3 of the Law on Personal Income Tax include:

1. Interests on loans provided to organisations, enterprises, households or individuals under loan contracts or loan agreements.

2. Dividends from capital contribution for share purchase; earnings from the contribution of capital to limited liability companies, partnerships, cooperatives, unions of cooperatives, joint ventures, business cooperation contracts and other forms of business in accordance with law; earnings from the contribution of capital to credit institutions; and earnings from the contribution of capital to securities investment funds and other investment funds established and operating in accordance with law.

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

a/ An increase in the value of capital contribution received upon the dissolution, transformation, division, splitting, merger or consolidation of enterprises, or upon capital withdrawal;

b/ Income from interests on bonds, treasury bills and other valuable papers issued by domestic organisations;

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

d/ Income from dividends paid in stocks, or stocks issued from equity to existing shareholders, and income from profits recorded as an increase in capital.

Article 10. Incomes from capital transfer

Incomes from capital transfer as specified in Clause 4, Article 3 of the Law on Personal Income Tax include:

1. Income from the transfer of part or the whole of capital contributions in limited liability companies, partnerships, business cooperation contracts, cooperatives, unions of cooperatives, people’s credit funds or other organisations.

2. Income from securities transfer, that is income from the transfer of stocks and stock warrants; the transfer of bonds, treasury bills, fund certificates and other types of securities in accordance with the law on securities; and income from the transfer of stocks by individuals in joint stock companies under Clause 2, Article 4 of the Law on Securities and Article 121 of the Law on Enterprises.

3. Income from capital contributions or securities for the establishment of enterprises or for the increase of capital of enterprises in accordance with law.

4. Income from the transfer of capital in other forms, including also the sale of enterprises, transfer of the right to contribute capital, and other forms of capital transfer in accordance with law.

5. Income from the sale of the whole of a sole proprietorship or an individual-owned single-member limited liability company in the form of transfer of capital associated with real estate shall be regarded as income from real estate transfer.

Article 11. Incomes from real estate transfer

Incomes from real estate transfer as specified in Clause 5, Article 3 of the Law on Personal Income Tax are incomes from transfer and authorisation activities under which the authorised person is granted full powers equivalent to ownership rights over real estate in accordance with civil law; these incomes include:

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 also future houses;

b/ Land-attached infrastructure and construction works, including also future construction works as defined by the law on real estate business;

c/ Assets being land-attached agro-forestry-fishery products.

2. Income from the transfer of ownership rights or use rights over houses, including also 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 also land with water surfaces), and the rights to lease water surfaces.

4. Other incomes from the transfer of real estate in any form, including also income from the contribution of real estate as capital for the establishment of enterprises or for increasing capital of enterprises in accordance with law.

Article 12. Incomes from winnings

Incomes from winnings as specified in Clause 6, Article 3 of the Law on Personal Income Tax are money amounts or benefits in kind received by individuals, including:

1. Lottery winnings paid by lottery companies.

2. Sales promotion winnings for the participation in the purchase and sale of goods or services in accordance with the Commercial Law.

3. Winnings in various forms of betting permitted by law.

3. Winnings in games and contests with winnings and other forms of winnings, except casino winnings and bonuses specified in Point i, Clause 2, Article 8 of this Decree.

Article 13. Incomes from copyright royalty

Incomes from copyright royalty as specified in Clause 7, Article 3 of the Law on Personal Income Tax include:

1. Income from the assignment or licensing of the right to use subject matters of intellectual property rights in accordance with the law on intellectual property.

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

Article 14. Incomes from commercial franchising

Incomes from commercial franchising as specified in Clause 8, Article 3 of the Law on Personal Income Tax are incomes received by individuals under commercial franchising contracts, including also cases of sub-franchising in accordance with the commercial law.

Article 15. Incomes from inheritances or gifts

Incomes from inheritances or gifts as specified in Clause 9, Article 3 of the Law on Personal Income Tax include:

1. Income from inheritances or gifts as part or the whole of capital contributions in limited liability companies, partnerships, business cooperation contracts, cooperatives, unions of cooperatives, people’s credit funds or other organisations.

2. Income from inheritances or gifts being stocks or stock warrants; bonds, treasury bills, fund certificates and other types of securities in accordance with the law on securities; and stocks held by individuals in joint stock companies as specified 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, including land use rights; land use rights together with land-attached assets; ownership rights over houses, including future houses; land-attached infrastructure and construction works, including also future construction works; land lease rights under land lease contracts (including also land with water surfaces); rights to lease water surfaces; and other assets as real estate in accordance with law.

4. Income from inheritances or gifts being cars, mopeds, motorcycles, ships, including also barges, motor boats, tugboats, push boats and boats, including yachts, aircraft, hunting rifles, sporting guns, and other assets subject to the registration of ownership rights or use rights with state management agencies.

Article 16. Other incomes

Other incomes as specified in Clause 10, Article 3 of the Law on Personal Income Tax include:

1. Income from the transfer of Vietnam’s national domain name “.vn”, that is income from the transfer of the right to use Vietnam national domain name “.vn” to other organisations or individuals.

2. Income from the transfer of greenhouse gas emission reduction results or carbon credits by individuals owning such greenhouse gas emission reduction results or carbon credits, except the case specified in Clause 1, Article 34 of this Decree.

3. Income from the transfer of vehicle registration plates obtained through auction 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. Foreign-currency income liable to personal income tax of an individual shall be converted into Vietnam dong at the buying rate of the commercial bank with which the individual opens a transaction account or with which the income-paying organisation or individual opens an account for income payment at the time the income is generated. In case an organisation or individual does not open an account in Vietnam, the official exchange rate of the Vietnam dong against the United States dollar, or the cross exchange rate of the Vietnam dong against other foreign currencies as published on the Portal of the State Bank of Vietnam at the time the income is generated shall apply.

2. Non-monetary income liable to personal income tax shall be converted into a monetary amount and calculated in Vietnam dong according to the ordinary market transaction value of the relevant product or service, or of a product or service of the same or equivalent type at the time the income is generated.

Chapter III

INCOMES ELIGIBLE FOR TAX EXEMPTION OR TAX REDUCTION

Section 1

INCOMES ELIGIBLE FOR TAX EXEMPTION

Article 18. Incomes from the transfer and receipt of real estate as inheritances or gifts

1. Personal income tax exemption shall be granted for income from the transfer and receipt of real estate as inheritances or gifts (including also future houses and construction works as defined by the law on real estate business) between: spouses; biological parents and biological children; adoptive parents and adopted children; parents-in-law and daughters-in-law (even in case the daughters’ husbands have died); parents-in-law and sons-in-law (even in case the sons’ wives have died); paternal grandparents and paternal grandchildren; maternal grandparents and maternal grandchildren; and siblings.

2. In case real estate (including also future houses and construction works as defined by the law on real estate business) is divided between spouses upon divorce pursuant to agreement or a court ruling, income from such division is eligible for tax exemption.

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

Article 19. Income from the transfer of an individual’s sole house or residential land use rights and residential land-attached assets

1. Personal income tax exemption shall be granted for income from the transfer of an individual’s house or residential land use rights and residential land-attached assets in case such individual owns the sole house or residential land use rights in Vietnam.

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

2. To be entitled to tax exemption referred to in Clause 1 of this Article, an individual transferring his/her sole house or residential land use rights in Vietnam must satisfy the following conditions:

a/ Holding ownership rights over the sole house or use rights over the sole residential land parcel (including cases in which a house or construction work is attached to such land parcel) at the time of transfer. In case the individual owns an additional future house or construction work at the time of transfer, the transfer thereof shall not be regarded as transfer of the individual’s sole house or residential land use rights.

In case of transfer of a house under joint ownership or a residential land parcel under joint use rights (including also cases in which spouses jointly hold house ownership rights or residential land use rights), only the individual who does not hold house ownership rights or residential land use rights elsewhere will be entitled to tax exemption; the individual who jointly holds house ownership rights or residential land use rights and also holds other house ownership rights or residential land use rights elsewhere will not be entitled to tax exemption;

b/ Holding house ownership rights or residential land use rights for at least 183 days by the date of transfer.

The time of determination of house ownership rights or residential land use rights is the date of issuance of the Certificate of residential land use rights and ownership of houses and other land-attached assets. Particularly in case of certificate re-issuance or renewal in accordance with the land law, the time  of determination of house ownership rights or residential land use rights is the date of issuance of the Certificate of land use rights and ownership of houses and other land-attached assets before the date of certificate re-issuance or renewal;

c/ Transferring the whole of the house or residential land use rights. In case an individual holds or jointly holds the sole house ownership rights or residential land use rights but wishes to transfer only part thereof, he/she will not be entitled to tax exemption for the transferred part.

3. The individual transferring real estate shall make by himself/herself the declaration of his/her sole house or residential land rights to be eligible for tax exemption and shall bear responsibility for such declaration. In case an untruthful declaration is detected, the individual shall have his/her tax arrears collected and be sanctioned in accordance with the law on tax administration and other relevant laws.

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

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

1. Personal income tax exemption shall be granted for income from the value of land use rights of individuals with land allocated by the State without land use levy payment or entitled to land use levy reduction in accordance with law.

2. In case an individual is entitled to land use levy exemption or reduction upon land allocation and transfers the land area eligible for land use levy exemption or reduction, he/she shall declare and pay tax on income from real estate transfer.

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

Article 21. Income of households and individuals directly engaged in the production of crops, planted forests, livestock production, cultured or fished aquatic products not yet processed into other products or just having undergone ordinary preliminary processing; and salt production

1. Personal income tax exemption shall be granted for income of households and individuals directly engaged in the production of crops, planted forests, livestock production, cultured or fished aquatic products not yet processed into other products or just having undergone ordinary preliminary processing; and salt production.

2. To be entitled to tax exemption referred to in Clause 1 of this Article, a household or an individual must satisfy the following conditions

a/ Holding lawful land use rights or land lease rights under a land lease contract (including also land with water surfaces), water surface use rights or water surface lease rights for production purposes, and directly engaged in the production of crops, planted forests, livestock production, cultured or fished aquatic products, and salt production.

In case of having land or water surface subleased from another organisation or individual, there must be a land or water surface lease agreement in accordance with law (unless the household or individual is contracted to plant forests or to tend, manage and protect forests in accordance with law). For fishing activities, there must be a certificate of ownership of, or a vessel lease contract, and the vessels must be directly used for fishing activities (except stow-net fishing activities) and provided that such fishing activities are not banned by law;

b/ Actually residing in the locality where activities of production of crops, planted forests, livestock production, cultured or fished aquatic products, and salt production are carried out.

The locality where activities of production of crops, planted forests, livestock production, cultured or fished aquatic products, and salt production are carried out as referred to in this Point is a commune-level administrative unit, including also a commune adjacent to the commune where production activities are carried out.

The place of residence of an individual engaged in fishing activities is not taken into account for tax exemption consideration.

3. The determination of products not yet processed into other products or just having undergone ordinary preliminary processing as referred to in Clause 1 of this Article must comply with Decree No. 181/2025/ND-CP detailing the implementation of a number of articles of the Law on Value-Added Tax and amending and supplementing documents.

Article 22. Income from dividends of members of agricultural cooperatives or unions of agricultural cooperatives, and of farmers concluding contracts with enterprises to participate in “Large Field” schemes, production forest planting or aquaculture

1. Personal income tax exemption shall be granted for income from dividends of members of agricultural cooperatives or unions of agricultural cooperatives, and of farmers concluding contracts with enterprises to participate in “Large Field” schemes in the production and sale of agricultural products, production forest planting or aquaculture.

2. The determination of members of cooperatives or unions of cooperatives as a basis for grant of tax exemption under Clause 1 of this Article must comply with the law on cooperatives.

3. To be entitled to tax exemption referred to in Clause 1 of this Article, an individual participating in “Large Field” schemes, production forest planting or aquaculture must satisfy the following conditions:

a/ Holding lawful land use rights or land lease rights under a land lease contract (including also land with water surfaces), water surface use rights or water surface lease rights for participating in “Large Field” schemes, production forest planting or aquaculture (including also the case of having land or water surface subleased from another organisation or individuals in accordance with law);

b/ Actually residing in the locality where activities of participation in “Large Field” schemes, production forest planting or aquaculture are carried out.

The locality where activities of participation in “Large Field” schemes, production forest planting or aquaculture are carried out as mentioned above is a commune-level administrative unit, including also a commune adjacent to the commune where such activities are carried out.

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

1. Personal income tax exemption shall be granted for income of individuals from the conversion of agricultural land for rationalising agricultural production without land repurposing, for households or individuals directly engaged in agricultural production and allocated land by the State for production purposes.

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

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

1. Personal income tax exemption shall be granted for income of individuals from interest on government bonds issued by the Government and municipal bonds issued by provincial-level People’s Committees.

2. Personal income tax exemption shall be granted for deposit interest received by individuals from their 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 form of demand deposits, time deposits, savings deposits, deposit certificates (including also interest from the transfer of deposit certificates), promissory notes, and treasury bills and other forms of deposits in adherence to the principle that the principal and interest are fully repaid to depositors as agreed upon.

3. Personal income tax exemption shall be granted for interest from life insurance contracts received by individuals from insurance enterprises under life insurance contracts.

Article 25. Income from remittances

1. Personal income tax exemption shall be granted for amounts received by individuals in Vietnam from their relatives who are overseas Vietnamese or Vietnamese persons working on official duty or studying abroad.

2. Tax exemption mentioned in this Clause shall also be granted to an individual who receives money from his/her relative being a foreign national, satisfying the conditions for promoted inward transfer of remittances as specified by the State Bank of Vietnam.

3. The bases for determining tax-exempt income are documents evidencing the sources of remittances received from abroad and the payment document (if any) issued by an organisation making payment on behalf of the remitter.

Article 26. Salaries and wages for night work and overtime work, and salaries and wages paid for untaken leave days

1. Personal income tax exemption shall be granted for salaries and wages for night work and overtime work performed at the workplace, ensuring compliance with the labour law’s provisions on working-time conditions and requirements.

An income-paying organisation or enterprise shall prepare a list showing the periods of night work and overtime work performed at the workplace and the amounts of salaries and wages paid to employees for such work. Such list shall be retained by the income-paying organisation or enterprise and produced at the request of the tax authority. In case such a list is not prepared, the income-paying organisation shall substantiate amounts of salaries and wages paid for night work and overtime work performed at the workplace by payroll records, worksheets, labour contracts and other lawful documents.

2. Personal income tax exemption shall be granted for salaries and wages paid for untaken leave days, ensuring the compliance with the provisions on conditions for payment and amounts of salaries and wages paid for untaken leave days in Clause 3, Article 113 of the Labour Code, and the provisions of the Law on Cadres and Civil Servants and the Law on Public Employees.

3. In case salaries and wages for night work or overtime work, or salaries and wages paid for untaken leave days, exceed the statutory levels, excessive amounts shall be included in taxable income of individuals.

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

1. Personal income tax exemption shall be granted for pension paid by the Social Insurance Fund in accordance with the law on social insurance, including also cases in which individuals living and working in Vietnam earn income from pension paid by foreign partners.

2. Personal income tax exemption shall be granted for income paid by supplementary pension insurance funds or voluntary pension funds, regardless of whether such payments are made periodically, in a lump sum, or before or after the retirement age.

Article 28. Income from scholarships

1. Personal income tax exemption shall be granted for income from scholarships funded by the state budget, including: scholarships awarded by the Ministry of Education and Training, provincial-level Departments of Education and Training, the National Scholarship Fund, talent promotion and study promotion funds, or public education institutions, or other types of scholarships funded by the state budget.

2. Personal income tax exemption shall be granted for income from scholarships received from domestic and foreign organisations (including also cost-of-living allowances) under support programmes of such organisations.

3. Organisations paying scholarships to individuals as specified in Clauses 1 and 2 of this Article shall retain scholarship award decisions and documents evidencing scholarship payment. Individuals receiving scholarships directly from foreign organisations shall retain supporting documents (if any).

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

1. Personal income tax exemption shall be granted for income from compensation under life insurance, non-life insurance or health insurance contracts received by individuals as the insured or beneficiaries from life insurance or non-life insurance organisations, health insurance organisations or microinsurance institutions under concluded insurance contracts.

The bases for determining such compensation are the compensation document or decision issued by the insurance organisation or the court and the document evidencing compensation payment.

2. Personal income tax exemption shall be granted for income from compensation for occupational accidents received by employees from employers or from the Social Insurance Fund in case the employees suffer accidents during working.

The bases for determining such compensation are the compensation document or decision issued by the employer or the court and the document evidencing payment of compensation for occupational accidents.

3. Personal income tax exemption shall be granted for income from compensation, support and resettlement upon land recovery by the State in accordance with law, including also income amounts paid in the form of compensation and support by organisations and enterprises upon land recovery.

The bases for determination of income from compensation, support and resettlement specified in this Clause are those stated in compensation and resettlement plans approved by competent state agencies.

4. Personal income tax exemption shall be granted for income from state compensation in accordance with the law on state compensation.

The bases for determination of such compensation are the competent state agency’s decision compelling the agency or individual making an incorrect decision to pay compensation, and the document evidencing compensation payment.

5. Personal income tax exemption shall be granted for income from compensation for non-contractual damage (including late-payment interest) in accordance with the Civil Code.

The basis for determining tax-exempt compensation is the legally effective court judgment or decision, or a written agreement on compensation for damage between the parties that has been notarised or certified in accordance with law.

Article 30. Income received from charity organisations and funds

1. Personal income tax exemption shall be granted for income received from charity organisations and funds licensed to be established, or recognised, by competent state agencies and operating for charity, humanitarian or study promotion purposes on a not-for-profit basis.

2. The bases for determination of tax-exempt income are the charity fund’s document or decision on the grant of the income and the document evidencing the payment of money or provision of amounts in kind by charity organisations and funds.

Article 31. Income received from foreign aid

1. Personal income tax exemption shall be granted for income received from foreign aid for charity or humanitarian purposes as governmental or non-governmental aid (including official development assistance, aid other than official development assistance, and emergency international aid for relief and remediation of disaster consequences) as approved by a competent state agency.

2. The basis for determination of tax-exempt income is the competent state agency’s document approving the receipt of aid.

Article 32. Income from salaries and wages of Vietnamese seafarers

1. Personal income tax exemption shall be granted for income from salaries and wages received by Vietnamese seafarers working for foreign shipping firms or Vietnamese shipping companies engaged in international transportation.

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

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

Personal income tax exemption shall be granted for income earned by individuals who are vessel owners, individuals holding vessel use rights, and individuals working on board vessels from the provision of goods and services directly serving offshore fishing activities in accordance with law.

Article 34. Income from transfer of emission reduction certificates and transfer of carbon credits; income from interest on green bonds and transfer of green bonds

1. Personal income tax exemption shall be granted for income from the initial transfer of greenhouse gas emission reduction results or carbon credits by individuals with such greenhouse gas emission reduction results or carbon credits issued or recognised.

2. Personal income tax exemption shall be granted for income from interest on green bonds.

3. Personal income tax exemption shall be granted for income from the initial transfer of green bonds after they are issued.

Income from the transfer of green bonds eligible for tax exemption as specified in this Clause is income received by individuals from the transfer of green bonds purchased by the individuals directly from green bond issuers.

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

1. Personal income tax exemption shall be granted for income from salaries and wages for the performance of science, technology and innovation tasks.

2. Tax-exempt income of individuals from salaries and wages for 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:

Salaries and wages of individuals performing science, technology and innovation tasks funded by the state budget are remuneration amounts for participation in the performance of science, technology and innovation tasks as specified in 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 concerning finances and investment in science, technology and innovation.

Remuneration amounts for individuals participating in the performance of science, technology and innovation tasks shall be determined on the basis of science, technology and innovation tasks funded by the state budget as approved by competent authorities in accordance with Decree No. 267/2025/ND-CP detailing and guiding a number of articles of the Law on Science, Technology and Innovation concerning science, technology and innovation programmes and tasks and a number of provisions on the promotion of scientific research, technological development and innovation activities; and Decree No. 268/2025/ND-CP detailing and guiding a number of articles of the Law on Science, Technology and Innovation concerning innovation; the promotion of science, technology and innovation activities in enterprises; the recognition of innovation centres and support for innovative start-up activities; the recognition of innovative start-up individuals and enterprises; and network infrastructure and ecosystem for innovative start-up activities.

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 defined by the law on science, technology and innovation as approved by enterprises and performed using lawful funding sources of enterprises or lawful funding sources of coordinating units, without using state budget funds.

The determination of salaries and wages of individuals participating in the performance of science, technology and innovation tasks not funded by the state budget must comply with the provisions on expenditures of enterprises for experts, scientists and individuals performing scientific research, technological development and innovation tasks as specified in Clause 1, Article 15 of Decree No. 265/2025/ND-CP, or the provisions on expenditures of enterprises for payment of salaries and wages for personnel directly engaged in scientific research, technological development and innovation activities as specified in Clause 2, Article 15 of Decree No. 265/2025/ND-CP.

Enterprises shall formulate and promulgate internal procedures for management of science, technology and innovation tasks under their management; shall be responsible for ensuring the compliance of scientific research, technological development and innovation activities under the tasks approved by them with the provisions on scientific research, technological development and innovation of the law on science, technology and innovation.

A dossier for determining the satisfaction of the conditions for personal income tax exemption for income from salaries and wages from the performance of science, technology and innovation tasks not funded by the state budget must comprise: the decision approving, or the approved commentary document on, the science, technology and innovation tasks; a contract on hiring scientific research, technological development or innovation jobs; records of handover and acceptance testing of products and contract liquidation together with supporting documents and invoices (if any). Such dossier shall be retained by the income-paying organisation or enterprise and produced at the request of the tax authority.

Article 36. Income from copyright in relation to science, technology and innovation tasks

1. Personal income tax exemption shall be granted for income from copyright in relation to science, technology and innovation tasks when outcomes of such tasks are commercialised in accordance with the law on science, technology and innovation and the law on intellectual property.

2. The commercialisation of outcomes of scientific research, technological development and innovation shall be determined under Article 27 of the Law on Science, Technology and Innovation.

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

1. Personal income tax exemption shall be granted for income from capital investment received by individual investors from innovative start-up projects, founders of innovative start-up enterprises, and individual investors contributing capital to venture capital funds.

2. Personal income tax exemption shall be granted for income from salaries and wages received by experts providing support for innovative start-up activities from innovative start-up projects and innovative start-up enterprises.

3. The determination of innovative start-up projects, innovative start-up enterprises, experts providing support for innovative start-up activities, individual investors engaged in innovative start-up activities, and individuals or groups of individuals engaged in innovative start-up activities who are founders of innovative start-up enterprises must comply with the law on science, technology and innovation; the determination of venture capital funds and innovative start-up investment funds must 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 under programmes and projects funded by non-refundable ODA or foreign non-governmental programmes and projects in Vietnam; Vietnamese individuals working at representative offices of international organisations 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 under programmes and projects funded by non-refundable ODA who do not hold Vietnamese nationality and who enter Vietnam to provide professional and technical consultancy services or to perform other tasks serving the research, formulation, appraisal, monitoring, evaluation, management and implementation of non-refundable ODA-funded programmes and projects in accordance with the provisions or agreements in treaties on non-refundable ODA concluded between competent authorities of the Vietnamese side and the foreign side.

Individuals entitled to tax exemption under this Clause are those falling into the following cases:

a/ The foreign side selects, and signs a contract with, an expert or a contractor (company) and the expert is on the list of consultants in the contractor (company)’s biding documents, on the basis of biding results approved by the competent authority of the foreign side and accepted by the Vietnamese side;

b/ The Vietnamese side selects, and signs a contract with, an expert or a contractor (company) and the expert is on the list of consultants in the contractor (company)’s bidding documents, on the basis of bidding results approved by the competent authority of the Vietnamese side and accepted by the foreign side.

2. Personal income tax exemption shall be granted for income from salaries and wages of foreign experts working in Vietnam under programmes, projects or non-project activities receiving aid other than official development assistance, or international emergency aid for relief and remediation of disaster consequences (including aid from foreign non-governmental organisations) who do not hold Vietnamese nationality and who directly carry out activities of such programmes, projects or non-project activities on the basis of agreement between the foreign donor and the Vietnamese project managing agency or project owner as provided in the approved programme, project or non-project activity documentation in accordance with the regulations on receipt, management and use of foreign aid for Vietnam.

Individuals entitled to tax exemption under this Clause are those falling into the following cases:

a/ A foreign non-governmental organisation selects, and signs a contract with, a foreign expert in accordance with the contract-accompanying terms of reference (TOR) for the foreign expert;

b/ The project managing agency or the programme/project/non-project activity owner receiving aid other than official development assistance, or international emergency aid for relief and remediation of disaster consequences (including aid from foreign non-governmental organisations), selects, and signs a contract with, a foreign expert in accordance with the contract-accompanying TOR for the foreign expert.

3. Personal income tax exemption shall be granted for income from salaries and wages of Vietnamese individuals who hold Vietnamese nationality and are recruited under contracts to work at representative offices of international organisations within the United Nations system in Vietnam, excluding Vietnamese individuals who are recruited and 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 under competent authorities’ decisions to participate in United Nations peacekeeping forces, for the duration of performance of their mission in accordance with law.

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

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

Personal income tax exemption shall be granted for income of owners of sole proprietorships and individuals who are owners of single-member limited liability companies established under Vietnam’s law after the enterprises have fulfilled their corporate income tax obligations.

Section 2

OTHER CASES ELIGIBLE FOR TAX EXEMPTION OR REDUCTION

Article 40. Tax reduction in cases of disasters, epidemics, fires, accidents or terminal diseases

1. Taxpayers facing difficulties caused by disasters, epidemics, fires, accidents or terminal diseases that affect their tax payment ability shall be considered for a reduced tax amount corresponding to the extent of damage but not exceeding the payable personal income tax amount.

The determination of terminal diseases must comply with regulations of the Minister of Health.

2. Tax reduction shall be considered on an annual basis. Taxpayers facing difficulties caused by disasters, epidemics, fires, accidents or terminal diseases in a year shall be considered for reduction of the payable tax amounts for that year.

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

a/ The payable personal income tax amount in the tax period for income from business activities and income from salaries and wages of the individual;

b/ The personal income tax amount already paid or withheld for income from capital investment, income from capital transfer, income from real estate transfer, income from winnings, income from copyright royalty, income from commercial franchising, income from inheritance, income from gifts, and other incomes.

4. The basis for determining the extent of damage for tax reduction consideration is the total actual expense incurred to remedy the damage, and to pay medical examination and treatment costs, minus (-) compensation or insurance amounts received from the insurance organisation (if any) or from the organisation or individual causing the damage (if any).

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

a/ In case the payable tax amount in the year is greater than the extent of damage, the to-be-reduced tax amount will be equal to the extent of damage;

b/ In case the payable tax amount in the year is smaller than the extent of damage, the to-be-reduced tax amount will be equal to the payable tax amount.

6. Dossiers and procedures for tax reduction consideration specified in this Article must comply with the law on tax administration.

Article 41. Tax exemption for individuals classified as 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 classified as high-quality human resources in the digital technology industry in the following cases:

a/ Income from digital technology industry projects in digital technology parks;

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

c/ Income from training of human resources for the digital technology industry.

2. The determination of high-quality human resources for the digital technology industry serving as a basis for tax exemption under Clause 1 of this Article must comply with the law on the digital technology industry and relevant laws: 

a/ The determination of high-quality human resources for the digital technology industry must comply with Articles 5 thru 10 of Decree No. 353/2025/ND-CP detailing a number of articles, and measures to organise and guide the implementation, of the Law on the Digital Technology Industry, and provisions of the law on the digital technology industry;

b/ The determination of digital technology industry activities must 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 is generated. In case income is generated during a month, the tax exemption period shall be calculated as a full month.

4. In case an individual has income from salaries and wages eligible for tax exemption under Clause 1 of this Article and also has other incomes from salaries and wages, the to-be-exempted personal income tax amount shall be determined as follows:

5. Tax withholding and tax finalisation must comply with Articles 50 and 51 of this Decree.

Article 42. Tax exemption for individuals regarded as hi-tech human resources

1. Personal income tax exemption for 5 years shall be granted for income from salaries and wages of individuals who are regarded as hi-tech human resources in the following cases:

a/ Income from the performance of the research and development of high technologies on the List of high technologies prioritised for development investment and the List of hi-tech products encouraged for development in accordance with the law on high technology;

b/ Income from the research and development of strategic technologies on the List of strategic technologies and the List of strategic technology products in accordance with the law on high technology.

2. The determination of hi-tech human resources carrying out the research and development of high technologies or strategic technologies on the List of high technologies prioritised for development investment or the List of strategic technologies and the List of strategic technology products must comply with the law on high technology. A number of specific cases are as follows:

a/ The determination of hi-tech human resources under Clause 1 of this Article as a basis for granting tax exemption must comply with Article 13 of the Law on High Technology and guiding documents;

b/ The determination of the research and development of high technologies or strategic technologies on the List of high technologies prioritised for development investment and the List of hi-tech products encouraged for development; or the List of strategic technologies and the List of strategic technology products must comply with Articles 11 and 12 of the Law on High Technology and guiding documents.

3. The tax exemption period shall be calculated continuously from the month in which the tax-exempt income is generated. In case income is generated during a month, the tax exemption period shall be calculated as a full month.

4. In case an individual has income from salaries and wages eligible for tax exemption under Clause 1 of this Article and also has other incomes from salaries and wages, the to-be-exempted personal income tax amount shall be determined as follows:

5. Tax withholding and tax finalisation must comply with Articles 50 and 51 of this Decree.

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

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 by the time of sale of such fund certificates, they have been held for full 2 years or more from the date of purchase.

2. In case an individual purchased open-ended fund certificates before July 1, 2026, and transfers them on or after July 1, 2026, he/she will be entitled to personal income tax exemption for the transfer of such fund certificates if having held them for full 2 years or more from the date of purchase.

3. In case an individual transfers fund certificates purchased at different times, the 2-year period of holding those fund certificates as specified in Clauses 1 and 2 of this Article shall be determined in adherence to the principle that whichever fund certificates are purchased first shall be deemed sold first.

Article 44. Tax reduction for investor returns distributed from securities investment funds and real estate investment funds

A 50% personal income tax reduction for 5 years, from July 1, 2026, through June 30, 2031, shall be granted for income from returns of individual investors that are distributed from securities investment funds and real estate investment funds established in accordance with the Law on Securities.

Chapter IV

TAX BASES FOR INCOME OF RESIDENT INDIVIDUALS

Section 1

INCOME FROM BUSINESS ACTIVITIES

Article 45. Personal income tax on income from business activities

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

2. Tax rates calculated on assessable turnover specified in Clause 3, Article 7 of the Law on Personal Income Tax are provided in detail according to the list of sectors and trades provided in the Appendix to this Decree.

Section 2

INCOME FROM SALARIES AND WAGES

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

1. Personal income tax on income from salaries and wages of resident individuals shall be determined as equal to assessable income specified in Clause 2 of this Article, regardless of where the income is paid and received, multiplied (x) by the tax rate in the Partially Progressive Tax Schedule specified in Article 9 of the Law on Personal Income Tax. The tax amount calculated for each tax grade shall be determined as equal to assessable income of a tax grade multiplied (x) by the corresponding tax rate of that tax grade.

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

a/ Paid amounts of social insurance, health insurance, unemployment insurance and professional liability insurance premiums for a number of sectors and trades in which compulsory insurance is required for employees; voluntary social insurance premiums in accordance with the Law on Social Insurance; voluntary health insurance premiums in accordance with the Law on Health Insurance; and supplementary retirement insurance premiums in accordance with the Law on Social Insurance; and purchased voluntary retirement insurance and life insurance premiums.

The total amount of paid supplementary retirement insurance premiums in accordance with the Law on Social Insurance and purchased voluntary retirement insurance and life insurance premiums deductible from income upon the determination of assessable income specified in this Point must not exceed VND 3 million/month for these forms of insurance participation, including the premium amount paid by the employer for the employee and the premium amount paid by the employee (if any).

In case an individual residing in Vietnam has income from salaries and wages abroad and has paid compulsory insurance premiums under regulations of the country where he/she pays premiums for these types of insurance, such as social insurance, health insurance, unemployment insurance and professional liability insurance, for a number of sectors and trades in which compulsory insurance is required for employees, such insurance premiums may be deducted from his/her assessable income upon the determination of assessable income from salaries and wages.

Paid social insurance, health insurance, unemployment insurance and professional liability insurance premiums for a number of industries and trades in which compulsory insurance is required for employees, paid supplementary retirement insurance premiums in accordance with the Law on Social Insurance, and purchased voluntary retirement insurance premiums of a year shall be deducted from taxable income of that year.

The basis for determination of deductible income is a photocopy of the premium payment receipt issued by the insurance organisation, the supplementary retirement fund or the insurance enterprise, and certification by the income-paying organisation of the insurance premium already deducted or paid (in case the income-paying organisation pays the premium on behalf of the employee);

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

c/ Charitable and humanitarian donations and other reductions specified 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 the time when the taxpayer receives income, including monetary or non-monetary benefits, subsidies, allowances, and other incomes specified in Article 8 of this Decree during the tax period.

4. In case an organisation or individual pays to an employee the income from salaries and wages, which is not inclusive of personal income tax, the conversion of tax-exclusive income into assessable income is specified as follows:

a/ Income serving as a basis for conversion of tax-exclusive income into assessable income is the actually received income plus (+) benefits paid by the income-paying organisation or individual on behalf of the income-receiving individual (if any), minus (-) reductions. In case the employer applies the “hypothetical tax” or “hypothetical house rental” policy, the income serving as a basis for conversion of tax-exclusive income into assessable income is not inclusive of the “hypothetical tax” or “hypothetical house rental” amount. In case payments made on behalf of the employee are inclusive of house rental, such house rental included in the income serving as a basis for conversion shall be equal to the actually paid amount but must not exceed 15% of the total taxable income generated, regardless of the place of income payment (not inclusive of actually arising house rental, electricity, water and accompanying service charges, and “hypothetical house rental” (if any));

b/ Formula for determination of income serving as a basis for conversion:

In which:

The actually received income is tax-exclusive salary and wage amounts received monthly by the employee, excluding income amounts not included in taxable income specified in Article 8 of this Decree and tax-exempt income specified in Section 1, Chapter III of this Decree.

Payments made on behalf of the employee are monetary or non-monetary benefits paid by the employer on behalf of the employee under this Decree.

Reductions include: family circumstance-based reductions; social insurance, health insurance, unemployment insurance and professional liability insurance premium reductions for a number of sectors and trades in which compulsory insurance is required for employees; voluntary social insurance premiums under the Law on Social Insurance; voluntary health insurance premiums under the Law on Health Insurance; supplementary retirement insurance premiums under the Law on Social Insurance; and purchased voluntary retirement insurance and life insurance premiums not exceeding the level specified in Point a, Clause 2 of this Article; reductions for charitable and humanitarian donations and other reductions specified in Article 49 of this Decree.

c/ In case an individual is subject to tax finalisation under regulations, his/her taxable income of the year is the total taxable income of all months determined on the basis of converted assessable income. In case an individual earns tax-exclusive income from multiple income-paying organisations, his/her taxable income of the year is the total taxable income of all months earned from the income-paying organisations during the year.

Article 47. Family circumstance-based reductions

1. Resident individuals may have family circumstance-based reductions specified in Clause 1, Article 10 of the Law on Personal Income Tax deducted from their income from salaries and wages liable to personal income tax, including:

a/ The reduction level for taxpayers specified in Point a, Clause 1, Article 10 of the Law on Personal Income Tax;

b/ The reduction level for each dependent specified in Point b, Clause 1, Article 10 of the Law on Personal Income Tax.

2. Subjects and bases for determination of dependents whom a taxpayer is obliged to nurture:

a/ Children (including biological children, lawfully adopted children, and stepchildren of the spouse) who are aged under 18 years;

b/ Children (including biological children, lawfully adopted children, and stepchildren of the spouse) who are aged 18 years or older and fall into the following cases: persons with lost civil act capacity; persons with disabilities; persons incapable of working;

c/ Children (including biological children, lawfully adopted children, and stepchildren of the spouse) who are studying at universities, colleges, professional secondary schools or vocational schools, including also children aged 18 years or older studying at general education grades (inclusive of the period waiting for exam results from June to September of the 12^th grade), with no income or with an average monthly income in the year from all income sources not exceeding the income level specified by the Minister of Finance;

d/ The taxpayer’s spouse, biological father, biological mother, stepfather, stepmother, adoptive father and adoptive mother as specified by law, father-in-law and mother-in-law;

dd/ Other supportless individuals whom the taxpayer is obliged to directly nurture, including his/her biological siblings, paternal grandparents, maternal grandparents, biological paternal aunts, biological maternal aunts, biological maternal uncles, biological paternal uncles, biological nephews and nieces, and other persons whom the taxpayer is obliged to directly nurture in accordance with law.

Dependents specified in this Point are individuals who live together with the taxpayer and whom the taxpayer is obliged to nurture under Articles 104, 105 and 106 of the Law on Marriage and Family and other relevant laws.

3. To be regarded as a dependent under Points d and dd, Clause 2 of this Article, an individual must satisfy the following conditions:

a/ Being incapable of working, and having no income or having an average monthly income in the year from all income sources not exceeding the level specified by the Minister of Finance, for persons of the working age;

b/ Having no income or having an average monthly income in the year from all income sources not exceeding the level specified by the Minister of Finance, for persons beyond the working age.

4. Persons incapable of working specified in this Article are those with a working capacity reduction rate of 81% or higher determined in accordance with law.

5. Taxpayers shall register by themselves the number of their dependents accompanied with lawful supporting papers and take responsibility before law for the accuracy of the registration and income of their dependents.

6. Dossiers for determination of dependents entitled to family circumstance-based reductions must comply with regulations of the Minister of Finance.

Article 48. Principles of applying family circumstance-based reductions

1. Family circumstance-based reductions for taxpayers

a/ A taxpayer who has multiple sources of income from salaries and wages may, at any given time, choose to have family circumstance-based reductions calculated for himself/herself at one income-paying unit (calculated in full month);

b/ If, in the tax year, an individual has not yet had reductions calculated for himself/herself or has had reductions calculated for himself/herself for less than full 12 months, he/she will be entitled to a full 12-month reduction when carrying out tax finalisation under regulations;

c/ For a foreigner who is a resident individual in Vietnam, family circumstance-based reductions for him/her shall be calculated from January of the year or from the month of his/her arrival in Vietnam in case he/she is present in Vietnam for the first time until the month of termination of his/her labour contract and departure from Vietnam in the tax year (calculated in full month).

2. Family circumstance-based reductions for dependents

a/ A taxpayer may have family circumstance-based reductions calculated for his/her dependents if he/she has made tax registration and registered his/her dependents. The deadline for registration of dependents together with supporting documents is December 31 of the tax year, which remains stable for subsequent years if there are no changes.

In case the taxpayer has not yet had family circumstance-based reductions calculated for his/her dependents in the tax year, reductions for dependents shall be calculated from the month the nurturing obligation arises;

b/ When a taxpayer registers reductions for his/her dependents, family circumstance-based reductions shall be temporarily calculated in the year from the time of registration of dependents (calculated in full month).

In case multiple taxpayers share a dependent whom they are obliged to nurture, these taxpayers shall reach agreement to register family circumstance-based reductions for one of them in the tax year. Any change to the agreement shall apply to the subsequent tax period;

c/ In case a taxpayer has multiple sources of income from salaries and wages, he/she may choose an income-paying unit to register family circumstance-based reductions for his/her dependents, ensuring that each dependent is entitled to reduction only once for one taxpayer in the tax year.

Article 49. Reductions for charitable and humanitarian donations and other reductions

1. Resident individuals are entitled to reduction from their taxable income prior to the calculation of tax on income from salaries and wages, with respect to the following charitable and humanitarian donations:

a/ Donations to organisations or establishments that care for or nurture children in special plights, people with disabilities and supportless elderly people;

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

c/ Donations to organisations with the function of donation mobilisation that are established and operate in accordance with law.

Organisations, establishments and funds specified in this Clause must be those permitted to be established or recognised by competent state agencies, operating for charity, humanitarian or study promotion and not-for-profit purposes.

A dossier for determination of donations specified in this Clause must comprise photocopies of lawful collection documents of organisations, establishments and funds, or documents on cashless payment via credit institutions.

2. Taxpayers who are resident individuals are entitled to reduction from their taxable income prior to the calculation of tax on income from salaries and wages, with respect to medical and education-training expenses of the taxpayers and their dependents, including:

a/ Expenses for medical examination and treatment at domestic medical establishments that are on the list of medical examination and treatment services covered by health insurance, which must not exceed VND 23 million/year;

b/ Expenses for education and training at domestic education and training institutions, which must not exceed VND 24 million/year, specifically: tuition fees for early childhood education, general education, vocational education and higher education in accordance with the law on education and training, and other professional skills at education and training institutions.

3. Expenses for which taxpayers are entitled to reductions from taxable income as specified in Clause 2 of this Article must satisfy the following conditions:

a/ Being accompanied by invoices and documents in accordance with law; particularly, healthcare expenses shall be accompanied by a list of medical examination and treatment expenses used at medical examination and treatment establishments under regulations of the Minister of Health;

b/ Invoices and documents used for applying reductions must show information of taxpayers or their dependents;

c/ Not being paid from other sources, even from donations, support or payments made on behalf of taxpayers by organisations or individuals, state budget sources, social insurance funds, health insurance funds, or insurance pay-outs in different forms.

4. In case tax reduction is applied for medical expenses under Article 40 of this Decree or healthcare and education-training expenses arise under Points b, g and i, Clause 4, Article 8 of this Decree, such expenses shall not be included in reductions under Clause 2 of this Article.

5. Charity and humanitarian donations and other reductions arising in a year shall be deducted from taxable income of that year and may not be carried forward to be cleared against taxable income of the subsequent tax year. In case an individual has carried out tax finalisation without invoices or documents for determining the healthcare and education-training expenses as specified in Clause 3 of this Article, the adjustment of his/her tax obligations must comply with the law on tax administration.

Article 50. Tax withholding

1. Except the subjects specified in Clauses 2 and 3 of this Article, when an organisation or individual pays income to a taxpayer, it/he/she shall carry out tax withholding and remit the withheld tax amount of the individual based on:

a/ Monthly assessable income (for income amounts paid or paid on behalf of the individual by the organisation or individual);

b/ The Partially Progressive Tax Schedule specified in Article 9 of the Law on Personal Income Tax.

2. An organisation or individual that pays salaries, wages, remuneration and other payments to resident individuals but does not sign or signs labour contracts of a term of under 3 months (including also cases of paying salaries and other incomes to employees who have terminated labour contracts) with each payment equal to or exceeding VND 5 million shall carry out tax withholding and remit withheld tax amounts of the individuals at the rate of 10% on income before paying income to such individuals. In case each payment is under VND 5 million, the income-paying organisation or individual may withhold tax at the rate of 10% when so requested by the individuals.

In case an individual only has income subject to tax withholding at the aforementioned rate but his/her estimated total taxable income amount after family circumstance-based reductions does not reach tax payment threshold, he/she shall make a written commitment (according to the form issued together with guiding documents on tax administration) and send it to the income-paying organisation for use as a basis for temporary non-withholding of personal income tax. The individual shall take responsibility for his/her commitment; in case a fraud is detected, he/she shall be handled in accordance with the law on tax administration and other relevant laws.

Based on the individual’s commitment, the income-paying organisation will not withhold tax. At the end of the tax year, the income-paying organisation shall still draw up a list and income of individuals who are not yet subject to tax withholding according to the form issued together with guiding documents on tax administration and submit it to the tax authority.

For resident individuals signing labour contracts of a term of 3 months or more, income-paying organisations or individuals shall carry out tax withholding according to the Partially Progressive Tax Schedule as specified in Clause 1 of this Article, even when an individual signs contracts of a term of 3 months or more with multiple income-paying units.

3. A number of specific cases:

a/ In case an employee receives bonus in stocks or is entitled to purchase stocks at a preferential price that are issued under the employee stock ownership plan (ESOP), such stocks are not yet required to be counted as income from salaries and wages. Upon receiving income from the transfer of these stocks, the individual shall pay personal income tax on income from salaries and wages; at the same time, upon the transfer of stocks, the individual shall pay tax on income from securities transfer as specified in Article 54 of this Decree. In case of transfer of stocks of the same type, the individual shall pay personal income tax on income from salaries and wages until all bonus stocks and ESOP stocks have run out.

The basis for determining taxable income from bonus stocks specified in this Point is the money amount spent on the employee as recorded on accounting books of the income-paying organisation at the time of bonus payment. In case it is impossible to determine the amount spent on the employee as recorded on accounting books of the income-paying organisation, the taxable income shall be determined as the actually received quantity of stocks multiplied (x) by the par value; if the stock transfer price is lower than the par value, personal income tax on income from bonus stocks shall be calculated based on the market price at the time of transfer.

The basis for determining taxable income from ESOP stocks specified in this Point is the money amount spent on the employee as recorded in accounting books of the income-paying organisation at the time of issuing ESOP stocks. In case it is impossible to determine the amount spent on the employee as recorded in accounting books of the income-paying organisation, the taxable income shall be determined as the actually received quantity of stocks multiplied (x) by the par value minus (-) the amount spent by the employee to purchase ESOP stocks; if a negative difference arises, the individual is not required to pay personal income tax on income from salaries and wages with respect to ESOP stocks.

An individual receiving bonus stocks and ESOP stocks shall fully declare the origin and actually received value of the bonus stocks and ESOP stocks upon depositing stocks at the securities company or commercial bank where he/she opens a depository account. The securities company or commercial bank where the individual opens the depository account shall separately monitor the individual’s bonus stocks and ESOP stocks and carry out tax withholding and remit the withheld tax amount at the rate of 10% of the individual’s taxable income from bonus stocks and ESOP stocks. The individual shall include income from bonus stocks and ESOP stocks in taxable income from salaries and wages in the tax year for carrying out personal income tax finalisation under regulations.

b/ In case an employer purchases life insurance for employees (excluding supplementary retirement insurance and voluntary retirement insurance) or another type of non-compulsory insurance with premium accumulation from an insurance enterprise established and operating in accordance with Vietnam’s law, employees are not yet required to count the insurance premium into taxable income from salaries and wages upon insurance purchase. By the time the insurance contract matures, the insurance enterprise shall carry out tax withholding and remit the withheld tax amount at the rate of 10% of the accumulated premium amount corresponding to the amount paid by the employer for the employees from July 1, 2013. For life insurance premium amounts purchased on or after January 1, 2026, accumulated premiums shall be calculated on the amount exceeding the level specified in Point a, Clause 2, Article 46 of this Decree. In case accumulated premiums are paid multiple times, the tax amount shall be withheld at the rate of 10% of each payment of accumulated premiums. Individuals are not required to finalise tax on this income amount.

The employer shall determine the life insurance premium amount arising on or after January 1, 2026, that exceeds the level specified in Point a, Clause 2, Article 46 of this Decree before informing it to the insurance enterprise. In case an employee also participates in supplementary retirement insurance in accordance with the Law on Social Insurance, and purchases voluntary retirement insurance and life insurance, the maximum reduction level of VND 3 million/month shall apply to the total premiums for these types of insurance; and the employer shall allocate this VND 3 million/month amount to one or more than one type of insurance chosen by the employee.

The insurance enterprise shall separately monitor life insurance premiums and other non-compulsory insurance premiums purchased or contributed by the employer for employees for use as a basis for personal income tax calculation.

In case the employer purchases life insurance for employees (excluding supplementary retirement insurance and voluntary retirement insurance) or another type of non-compulsory insurance with premium accumulation from an insurance enterprise not established and operating in accordance with Vietnam’s law and licensed to sell insurance in Vietnam, the employer shall carry out tax withholding and remit the withheld tax amount at the rate of 10% of the purchased or contributed premium amount in excess of the level specified in Point a, Clause 2, Article 46 of this Decree before paying salaries to the employees. Individuals are not required to finalise tax on this income amount.

c/ For individuals who are foreigners entering to work in Vietnam, the income-paying organisation or individual (even the organisation or individual that is the Vietnamese partner reimbursing salary or wage expenses to the foreign partner) shall base itself/himself/herself on the taxpayers’ working period in Vietnam as stated in employment contracts or decisions sending them to work in Vietnam to withhold tax according to the Partially Progressive Tax Schedule (for individuals with a working period of 183 days or more in Vietnam in the tax year) or under Article 64 of this Decree (for individuals with a working period of under 183 days in Vietnam in the tax year). Resident individuals being foreigners whose employment contracts in Vietnam are terminated before their departure shall finalise tax with the tax authority or authorise other organisations or individuals to finalise tax and take responsibility for payable personal income tax amounts.

Article 51. Tax finalisation

1. Income-paying organisations and individuals; and resident individuals with income from salaries and wages shall carry out annual tax finalisation, except the following cases:

a/ Individuals whose payable tax amounts are smaller than tax amounts paid during the tax period and who do not request tax refund or tax clearing for the subsequent period;

b/ Individuals whose additional income generated elsewhere does not exceed VND 15 million per month on average and has been withheld at the rate of 10% by the income-paying organisation or individual for personal income tax as specified in Clause 2, Article 50 of this Decree; in this case, the individuals are not required to carry out tax finalisation for this income amount.

In case an individual chooses to carry out tax finalisation directly with the tax authority, the tax administration information system shall provide support in summarising all income sources from salaries and wages arising in the tax year, and the individual will be entitled to reduction of the tax amount already withheld by the income-paying organisation or individual during the tax year.

2. Except the case specified in Clause 3 of this Article, a taxpayer may authorise the income-paying organisation to carry out tax finalisation on his/her behalf in the following cases, even when he/she has not worked for full 12 months of the year:

a/ The individual has only one source of income from salaries and wages under a labour contract of a term of 3 months or more at a single organisation and is actually working there at the time of tax finalisation, even when he/she is transferred from a former organisation to a new organisation due to the former’s merger, consolidation, division, splitting or transformation, or transferred from the former organisation to the new organisation are within the same system;

b/ The individual has only one source of income from salaries and wages under a labour contract of a term of 3 months or more at a single organisation and is actually working there at the time of tax finalisation, and has other sources of income with tax already withheld under Point b, Clause 1 of this Article.

3. If, during the tax period, an individual requests tax reduction due to a disaster, an epidemic, a fire, an accident or a terminal disease as specified in Article 40 of this Decree, or reductions specified in Article 49 of this Decree arise, and the taxpayer wishes to have them deducted from income prior to tax calculation, the taxpayer shall carry out tax finalisation by himself/herself.

4. Dossiers and procedures for tax finalisation and authorisation of tax finalisation must 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 resident individuals shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from capital investment is a taxable income amount from capital investment specified in Article 9 of this Decree that a taxpayer receives each time it is generated.

3. The time of determining assessable income from capital investment is the time when an organisation or individual pays income to a taxpayer, except the cases specified in Clauses 4, 5 and 6 of this Article.

4. In case an individual receives dividends in stocks or an individual who is an existing shareholder receives stocks issued from equity, he/she is not yet obliged to pay personal income tax on income from capital investment upon receiving the stocks. Upon transferring such stocks, he/she shall pay personal income tax on income from capital investment for which personal income tax has not yet been paid at the time of receiving dividends in stocks or receiving stocks issued from equity; and at the same time, he/she shall pay personal income tax on income from securities transfer under regulations. In case of transfer of stocks of the same type, the individual shall pay personal income tax on income from capital investment until all stocks received in lieu of dividends and stocks issued from equity have run out.

Assessable income from capital investment in case an individual receives dividends in stocks or an existing shareholder receives stocks issued from equity is the dividend value recorded on accounting books or the actually received quantity of stocks multiplied by (x) the par value of such stocks. In case the stock transfer price is lower than the par value at the time of transfer, personal income tax on capital investment activities shall be calculated based on the market price at the time of transfer.

5. For income from returns recorded as a capital increase, individuals are not yet obliged to pay personal income tax on income from capital investment at the time of recording returns as a capital increase. Upon transferring capital, withdrawing capital or dissolving the enterprise, an individual shall pay personal income tax on income from capital investment, including also on the value recorded as a capital increase for which personal income tax has not yet been paid by the time of recording the value as a capital increase; at the same time, the individual shall pay personal income tax on income from capital transfer under regulations.

In case an individual transfers capital or withdraws part of capital contributions, he/she shall pay personal income tax on income from capital investment until it equals the value of returns recorded as a capital increase.

6. In case an individual receives income from capital investment abroad in any form, the time of determination of assessable income is the time when the individual receives the income.

Article 53. Personal income tax on income from capital transfer

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

In case it is impossible to determine the purchase price and expenses related to capital transfer, personal income tax shall be determined as the transfer price multiplied (x) by the tax rate of 2%.

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

A number of specific cases:

a/ In case the capital transfer contract requires payment by instalment or deferred payment, the transfer price is exclusive of instalment interest or deferred payment interest according to the term specified in the contract. Personal income tax shall be paid on instalment interest or deferred payment interest like income from capital investment;

b/ In case the transfer contract does not specify the payment price or the tax authority has grounds to determine that the payment price does not match the common trading price on the market, the tax authority may inspect and fix the transfer price in accordance with the law on tax administration.

3. The purchase price of the transferred capital amount specified in Clause 1 of this Article is the value of the capital contribution at the time of capital transfer, which shall be determined as equal to the total value of the initial capital contribution and additional capital contributions or purchases.

A number of specific cases:

a/ In case of a capital contribution, the purchase price is the cumulative value of the capital contribution by the time of capital transfer as recorded in accounting books, invoices and documents;

b/ In case of a repurchased capital amount, the purchase price is the capital value at the time of purchase. The purchase price shall be determined on the basis of the capital contribution repurchase contract and payment documents.

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

a/ Expenses for carrying out necessary legal procedures for the transfer;

b/ Charges and fees paid by the transferor to the state budget in accordance with law;

c/ Other expenses with supporting documents.

In case transfer expenses arise abroad, those original documents shall be certified by a notary office or an independent audit firm of the country where the expenses arise, and shall be translated into Vietnamese.

5. The time of determination of assessable income is the time when the transaction is completed in accordance with law or the time of performance of procedures for making a change in the list of capital-contributing members, except the case specified in Clause 6 of this Article.

6. Individuals who make capital contributions are not yet obliged to pay personal income tax on income from capital transfer upon capital contribution. Upon transferring capital, withdrawing capital or dissolving the enterprise, an individual shall pay personal income tax on income from capital transfer for the capital contribution for which he/she is not yet required to pay personal income tax at the time of capital contribution; at the same time, the individual shall pay tax on income from capital transfer or income from capital investment (in case of capital withdrawal or enterprise dissolution) under regulations.

Assessable income from the transfer of a capital contribution portion upon the capital contribution is the value of the capital portion determined under the capital contribution contract at the time of capital contribution. In case an individual transfers or withdraws a capital contribution portion, he/she shall pay personal income tax on income from capital transfer until it is equal to the value of this capital contribution portion.

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/ For securities listed or registered for trading on the Stock Exchange, it is the actual selling price of the securities (the order-matching price or agreed price) as notified by the Stock Exchange;

b/ For securities other than those specified in Point a of this Clause, it is the price stated on the transfer contract, the actual transfer price or the price recorded in the accounting books of the unit having securities transferred at the time of preparing the last financial statements in accordance with the accounting law prior to the transfer time.

3. The time of determination of assessable income is the time when the transaction is completed in accordance with law, except the case specified in Clause 4 of this Article, specifically as follows:

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

b/ For securities of public companies that are not traded on the Stock Exchange and for which only the ownership transfer is conducted through the transfer system of the Vietnam Securities Depository and Clearing Corporation, it is the time of securities ownership transfer at the Vietnam Securities Depository and Clearing Corporation;

c/ For securities other than those specified above, it is the time when the securities transfer contract takes effect.

4. Individuals contributing capital with securities are not yet obliged to declare and pay tax on income from securities transfer upon capital contribution. When an individual transfers capital or withdraws capital or when the enterprise is dissolved, the individual shall pay personal income tax on income from securities transfer upon capital contribution; at the same time, he/she shall pay tax on income from capital transfer or income from capital investment (in case of capital withdrawal or enterprise dissolution) under regulations.

Assessable income from securities transfer upon capital contribution is the value of securities determined under the capital contribution contract at the time of capital contribution. In case an individual transfers or withdraws a capital contribution portion, he/she shall pay personal income tax on income from securities transfer until it is equal to the value of this capital contribution portion in securities.

5. The determination of income from the transfer of derivative securities must comply with the law on securities and other relevant laws. The Minister of Finance shall provide regulations on personal income tax on income from transfer of derivative securities.

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

1. Organisations and individuals paying income from capital investment under Article 52 of this Decree shall withhold personal income tax before paying income to individuals, except the case specified in Clause 2 of this Article.

2. In case an individual receives dividends in stocks, or an individual who is an existing shareholder receives stocks issued from equity as specified in Clause 4, Article 52 of this Decree, the organisation specified in Clause 4 of this Article shall declare and pay tax on behalf of the individual on income from capital investment when the individual transfers securities of the same type. In case the organisation that takes charge of tax declaration and tax payment on behalf of the taxpayer has been dissolved or gone bankrupt without having carried out tax declaration and tax payment on behalf of the individual, the individual shall declare and pay tax under regulations.

3. For an individual whose increased capital portion is recorded, the organisation to which the individual has contributed capital shall declare and pay tax on behalf of the individual on income from capital investment when the individual transfers capital or withdraws capital or the enterprise is dissolved. In case the organisation that takes charge of tax declaration and tax payment on behalf of the taxpayer has been dissolved or gone bankrupt without having carried out tax declaration and tax payment for the individual, the individual shall declare and pay tax under regulations.

4. Organisations carrying out tax declaration and tax payment on behalf of taxpayers specified in Clause 2 of this Article are specified as follows:

a/ For securities traded through the trading system on the Stock Exchange, an organisation carrying out tax declaration and tax payment on behalf of a taxpayer is the securities company or commercial bank where the individual opens a depository account, or the fund management company where the individual consigns his/her investment portfolio;

b/ For securities traded not through the trading system on the Stock Exchange: With respect to securities of public companies that have made centralised securities registration at the Vietnam Securities Depository and Clearing Corporation, an organisation carrying out tax declaration and tax payment on behalf of a taxpayer is the securities company or commercial bank where the individual opens a securities depository account; for securities of joint stock companies that are not yet public companies but the securities-issuing organisation authorises a securities company to manage the list of shareholders, an organisation carrying out tax declaration and tax payment on behalf of a taxpayer is the securities company authorised to manage the list of shareholders; for securities other than those specified in this Point, an organisation carrying out tax declaration and tax payment on behalf of a taxpayer is the securities-issuing organisation.

5. Dossiers and procedures for tax withholding, tax declaration and tax payment on behalf of taxpayers must comply with the law on tax administration.

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

1. Individuals who have income from capital transfer specified in Article 53 of this Decree shall carry out tax declaration and tax payment under regulations, except the case specified in Clause 5 of this Article.

2. For income from securities transfer specified in Article 54 of this Decree, the organisations specified in Clause 4 of this Article shall make tax withholding and remit the withheld tax amounts at the tax rate of 0.1% of the transfer price.

3. For cases of capital contribution with a capital contribution portion or capital contribution with securities, the capital-receiving organisation shall declare and pay tax on behalf of the individual for income from capital transfer and securities transfer when the individual transfers capital or withdraws capital or when the enterprise is dissolved. In case the organisation carrying out tax declaration and tax payment on behalf of taxpayers has been dissolved or gone bankrupt without having carried out tax declaration and tax payment for the individual, the individual shall declare and pay tax under regulations.

4. Tax-withholding organisations

a/ For securities traded through the trading system on the Stock Exchange, an organisation withholding tax and remitting the withheld tax amount is the securities company or commercial bank where the individual opens a depository account, or the fund management company where the individual consigns his/her investment portfolio;

b/ For securities traded not through the trading system on the Stock Exchange: With respect to securities of public companies that have made centralised securities registration at the Vietnam Securities Depository and Clearing Corporation, an organisation withholding tax and remitting the withheld tax amount is the securities company or commercial bank where the individual opens a securities depository account; for securities of joint stock companies that are not yet public companies but the securities-issuing organisation authorises a securities company to manage the list of shareholders, an organisation withholding tax and remitting the withheld tax amount is the securities company authorised to manage the list of shareholders; for securities other than those specified in this Point, the securities-transferring individual shall directly declare tax with the tax authority.

5. An individual shall fulfil his/her tax obligation for the transferred capital portion before carrying out procedures for changing the list of capital-contributing members or the list of shareholders at the enterprise where the individual transfers capital. In case the enterprise carries out procedures for changing the list of capital-contributing members or the list of shareholders in case of capital transfer while the individual has not yet fulfilled the tax obligation, the enterprise where the individual transfers capital shall declare and pay tax on behalf of such individual.

6. Dossiers and procedures for tax withholding, tax declaration and tax payment on behalf of taxpayers must comply with the law on tax administration.

Section 4

INCOME FROM REAL ESTATE TRANSFER, WINNINGS, COPYRIGHT ROYALTY, COMMERCIAL FRANCHISING, INHERITANCES, GIFTS AND OTHER INCOMES

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

1. Personal income tax on income from real estate transfer of resident individuals shall be determined as the transfer price multiplied (x) by the tax rate of 2%. Of these, the real estate transfer price is the price stated on the transfer contract at the time of transfer.

2. For case of transfer of real estate being land use rights in which the transfer contract does not state the land price or the land price stated in the transfer contract is lower than the price calculated according to the land price table and land price adjustment coefficient (if any) in accordance with the land law at the time of determination of assessable income, the land transfer price will be the land price according to the land price table and land price adjustment coefficient (if any) in accordance with the land law.

3. For case of transfer of land use rights and land-attached assets (including houses, infrastructure and architectural works) in which the transfer contract does not state the price of land and land-attached assets, or the land price on the transfer contract is lower than the price calculated according to the land price table and land price adjustment coefficient (if any) in accordance with the land law, and the value of land-attached houses, infrastructure and architectural works is lower than the price for house registration fee calculation specified by the provincial-level People’s Committee at the time of determination of assessable income:

a/ The value of land use rights shall be determined under Clause 2 of this Article if the transfer contract does not state the land price or the land price stated in the transfer contract is lower than the price calculated according to the land price table and land price adjustment coefficient (if any) in accordance with the land law;

b/ The value of land-attached houses, infrastructure and architectural works shall be determined on the basis of the price for house registration fee calculation specified by the provincial-level People’s Committee. In case the provincial-level People’s Committee does not specify a price for house registration fee calculation, it shall be based on the Ministry of Construction’s relevant regulations on house classification, standards, capital construction norms, and the actual remaining value of works on land.

For future construction works, such value shall be determined based on the ratio of capital contribution to the total contract value multiplied by (x) the registration fee calculation price of construction works specified by the provincial-level People’s Committee. In case the provincial-level People’s Committee has no regulations on unit price, it shall be based on the work construction investment capital ratio announced by the Ministry of Construction and currently applied at the time of submission of the tax declaration dossier to the tax authority.

4. In case of sublease in which the sublease unit price stated in the contract is lower than the land lease unit price calculated according to the land price in the land price table promulgated by the provincial-level People’s Committee multiplied by (x) the land price adjustment coefficient (if any) in accordance with the land law at the time of sublease, the sublease unit price shall be determined based on the land price in the land price table promulgated by the provincial-level People’s Committee and the land price adjustment coefficient (if any).

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

a/ In case the transfer contract has no agreement that the buyer pays tax on behalf of the seller, the time of determination of assessable income is the time when the transfer contract takes effect in accordance with law;

b/ In case the transfer contract has an agreement that the buyer pays tax on behalf of the seller, the time of determination of assessable income is the time of performance of procedures for registration of real estate ownership and use rights;

c/ In case an individual acquires a future house or land use rights associated with a future construction work, the time of determination of assessable income is the time when the individual submits the tax declaration dossier to the tax authority;

d/ Individuals contributing capital with real estate are not yet required to declare and pay tax on income from real estate transfer upon capital contribution. Upon capital transfer, capital withdrawal or enterprise dissolution, the capital-receiving organisation shall declare and pay tax on behalf of the individual on income from real estate transfer upon capital contribution; at the same time, the individual shall pay tax on income from capital transfer or income from capital investment (in case of capital withdrawal or enterprise dissolution) under regulations.

Assessable income from real estate transfer upon capital contribution is the value of the capital portion determined according to the capital contribution contract at the time of capital contribution. In case an individual transfers or withdraws a capital contribution portion, he/she shall pay personal income tax on income from real estate transfer until it equals the value of this capital contribution in real estate.

In case an organisation obliged to carry out tax declaration and tax payment on behalf of a taxpayer under this Point has been dissolved or gone bankrupt without having carried out tax declaration and tax payment for the individual, the individual shall declare and pay tax under regulations.

6. A number of specific cases:

a/ In case of transfer of real estate under co-ownership, the tax obligation shall be determined separately for each taxpayer according to the ratio of real estate ownership. The basis for determination of the ownership ratio is the initial capital contribution agreement, testament, court ruling on property division, or another lawful document. In the absence of such a lawful document, the tax obligation of each taxpayer shall be determined according to an average ratio. Real estate co-owning individuals may authorise one of them as a representative to pay tax on income from real estate transfer;

b/ In case of authorisation in which the authorised party has full rights like the ownership rights over real estate in accordance with the civil law, the taxpayer is the authorising individual.

For forms of authorisation of real estate transfer whereby the authorised party only receives remuneration and does not have full rights like the ownership rights over real estate in accordance with the civil law, tax payment shall be made under Article 8 of this Decree;

c/ In case an individual has land use rights and house ownership rights but uses them to secure the performance of his/her obligations at a credit institution or foreign bank branch; by the debt payment deadline, if the individual is unable to pay the debts, the credit institution or foreign bank branch shall carry out procedures to handle such collateral and at the same time carry out tax declaration and tax payment on behalf of the individual before paying and finalising the individual’s debts;

d/ In case an individual has land use rights and house ownership rights and has put them in mortgage to borrow loans or make payment with an organisation or another individual, and now transfers the whole (or part) of such real estate to pay debts, the individual having land use rights and house ownership rights shall declare and pay personal income tax or the organisation or individual obliged to carry out transfer procedures on the former’s behalf shall do so before paying and finalising debts;

dd/ In case a real estate is transferred by an individual to an organisation or another individual under a court judgment execution decision, the transferring individual shall declare and pay tax, or the organisation or individual organising the auction shall declare and pay tax on behalf of the transferring individual. Particularly for real estate of an individual confiscated and auctioned by a competent state agency for remittance into the state budget in accordance with law, personal income tax declaration and payment are not required;

e/ In cases of house and land exchange among individuals not falling into cases of agricultural land repurposing for production and eligible for personal income tax exemption under Article 23 of this Decree, individuals exchanging houses and land shall declare and pay personal income tax.

Article 58. Personal income tax on income from winnings

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

2. Assessable income from winnings is the value of winnings exceeding VND 20 million that the taxpayer receives each time it arises, regardless of the number of times of receipt of the winnings.

3. Time of determination of assessable income

The time of determination of assessable income from winnings is the time when the organisation or individual pays winnings to the winner.

4. A number of specific cases:

a/ In case a single prize is awarded to multiple winners, assessable income shall be divided to each prize recipient. The prize winner shall present legal bases as proof of prize winning. In the absence of legal bases as proof of prize winning, the income from winnings shall be calculated for a single individual. In case an individual wins multiple prizes in a single game, his/her assessable income shall be calculated on the total value of the prizes;

b/ For lottery winnings, assessable income is the entire prize money value exceeding VND 20 million per lottery ticket received in a single drawing session;

c/ For promotional winnings in kind, assessable income is the money-equivalent value of the promotional product exceeding VND 20 million according to the market price at the time of receipt of winnings;

d/ For winnings in forms of betting, assessable income is the total prize value exceeding VND 20 million received by the bettor.

Article 59. Personal income tax on income from copyright royalty

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

2. Assessable income from copyright royalty is the income portion exceeding VND 20 million under the contract that a taxpayer receives each time the income is generated, regardless of the number of payments or the number of money amounts received by the taxpayer. In case of the same subject matter of intellectual property rights or technology transfer, but the transfer, assignment or licensing contract is divided into multiple contracts with the same user, assessable income is the income portion exceeding VND 20 million calculated on all such transfer, assignment or licensing contracts.

In case the subject matters of transfer, assignment or licensing are under co-ownership, assessable income shall be divided to each owner. The division ratio shall be based on the ownership rights or use rights certificate issued by a competent state agency.

3. Time of determination of assessable income

The time of determination of assessable income from copyright royalty is the time when the organisation or individual pays copyright royalty 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 individual shall be determined as assessable income multiplied (x) by the tax rate of 5%.

2. Assessable income from commercial franchising is the income portion exceeding VND 20 million under the contract that the taxpayer receives each time the income is generated, regardless of the number of payments or the number of money amounts received by the taxpayer. In case of the same subject matter of commercial rights in which the transfer is executed under multiple contracts, assessable income is the portion exceeding VND 20 million calculated on all commercial franchising contracts.

In case multiple individuals participate in commercial franchising in accordance with the Commercial Law, one individual representing such individuals as the taxpayer when authorised by the other individuals may enjoy income from commercial franchising.

3. Time of determination of assessable income

The time of determination of assessable income from commercial franchising is the time when the organisation or individual pays income to the taxpayer.

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

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

2. Assessable income from inheritances or gifts is the inheritance or gift value exceeding VND 20 million that a taxpayer receives each time income is generated. The determination of assessable income for various types of assets as inheritances or gifts must ensure conformity with normal market transaction prices of the same or equivalent assets at the time income is generated.

3. Time of determination of assessable income

a/ For income from inheritances or gifts, it is the time when the organisation or individual gives the inheritances or gifts to the taxpayer or the time when the taxpayer receives the inheritances or gifts;

b/ For income from inheritances or gifts being assets subject to registration of ownership rights and use rights, it is the time of registration of ownership rights and use rights for the inheritances or gifts.

4. A number of specific cases:

a/ For inheritances or gifts being securities, assessable income shall be determined at the time when procedures for ownership registration are carried out or the time when the tax declaration dossier is submitted to the tax authority, specifically as follows:

For securities listed or registered for trading on the Stock Exchange: The value of securities shall be based on securities price quotations on the Stock Exchange.

For securities other than those mentioned above: The value of securities shall be based on the value on accounting books of companies issuing such securities at the time of preparation of the last financial statements in accordance with the accounting law.

b/ For inheritances or gifts being holdings in business organisations or establishments, assessable income shall be determined based on the accounting book value at the nearest time prior to the time of registration of the ownership rights over the capital contribution portion;

c/ For inheritances or gifts being real estate, assessable income shall be determined as follows:

For the land value, assessable income shall be determined based on the land price table and land price adjustment coefficient (if any) in accordance with the land law at the time when the individual carries out procedures for registering real estate use rights and ownership rights.

For the value of land-attached houses, infrastructure and architectural works, assessable income shall be determined according to prices for house registration fee calculation specified by the provincial-level People’s Committee at the time the individual carries out procedures for registering real estate use rights and ownership rights. In case the provincial-level People’s Committee has no regulations on prices for house registration fee calculation, assessable income shall be determined based on the Ministry of Construction’s regulations on house classification, standards and capital construction norms; and the actual remaining value of works on land.

d/ For inheritances or gifts being other assets subject to registration of ownership rights and use rights, the determination of assessable income shall be based on prices for registration fee calculation of such assets or assets of the same type (if any) at the time the individual carries out procedures for registering ownership rights and use rights for the inheritances or gifts. In case an individual receives inheritances or gifts being imported assets and he/she is obliged to pay taxes related to asset importation, the asset value serving as the basis for tax calculation is the price for registration fee calculation at the time of ownership registration minus tax amounts paid at the stage of importation.

Article 62. Personal income tax on other incomes

1. Personal income tax on other incomes of a resident individual as 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%. Of these, assessable income is the income portion exceeding VND 20 million that the taxpayer receives upon each transfer.

For income from transfer of an auctioned vehicle license plate, assessable income is the portion exceeding VND 20 million of the transfer price (including also the vehicle attached to the auctioned license plate) minus (-) the remaining value of the vehicle according to the price for registration fee calculation at the time of transfer.

2. Personal income tax on other incomes of a resident individual as 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 when the organisation or individual pays income to the taxpayer or the time when the taxpayer receives income.

4. Cases of tax withholding, tax declaration and tax payment carried out on behalf of taxpayers must comply with Article 67 of this Decree and the law on tax administration.

Chapter V

TAX BASES FOR INCOME OF NON-RESIDENT INDIVIDUALS

Article 63. Personal income tax on incomes from business activities

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

2. In case a non-resident individual earns turnover from different production and business fields and trades but cannot separately account turnover from each field or trade, the applied personal income tax rate will be the highest tax rate specified for the field or trade in which he/she is actually operating on the whole turnover.

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

4. Tax withholding, tax declaration and tax payment carried out on behalf of taxpayers must comply 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 individual shall be determined as total salaries and wages received by the individual for job performance in Vietnam multiplied (x) by the tax rate of 20%.

2. Income from salaries and wages of non-resident individuals shall be determined in the same manner as income liable to personal income tax from salaries and wages of resident individuals.

3. The determination of income liable to personal income tax from salaries and wages in Vietnam in case a non-resident individual works concurrently in Vietnam and abroad but cannot separately account income amounts generated in Vietnam must use the following formula:

a/ For foreign individuals who are not present in Vietnam:

In which: The total number of working days in the year shall be calculated according to the Labour Code of Vietnam.

b/ For foreign individuals who are present in Vietnam:

Other (pre-tax) taxable incomes generated in Vietnam specified in Points a and b of this Clause are other monetary or non-monetary benefits received by employees in addition to salaries and wages paid by employers or paid on behalf of employers to employees.

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

5. Tax withholding, tax declaration and tax payment carried out on behalf of taxpayers must comply 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 incomes of non-resident individuals

1. The determination of personal income tax on income from capital investment, capital transfer, real estate transfer, copyright royalty, commercial franchising, inheritances, gifts, and other incomes of non-resident individuals specified in Articles 22 thru 27 of the Law on Personal Income Tax must comply with Articles 52 thru 62 of this Decree.

2. Tax withholding, tax declaration and tax payment carried out on behalf of taxpayers must comply with Articles 55, 56, 57 and 67 of this Decree and the law on tax administration.

Chapter VI

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

Article 66. Tax period

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

a/ The tax period based on a calendar year applies to income from business activities, and income from salaries and wages of individuals;

In case an individual, within a calendar year, satisfies the conditions to be regarded as a resident individual, the tax period shall be based on a calendar year.

In case an individual, within a calendar year, is present in Vietnam for a period of less than 183 days, but, if calculated within 12 consecutive months from the first day of presence in Vietnam, such period is 183 days or more, the first tax period shall be determined as 12 consecutive months from the first day of presence in Vietnam. From the second year onwards, the tax period shall be based on a calendar year if the individual satisfies the conditions to be regarded as a resident individual in the calendar year, and the remaining payable tax amount in the second tax year shall be determined as follows:

In which:

b/ The tax period upon each time income is generated applies to income from capital investment; income from capital transfer, including also income from securities transfer; income from real estate transfer; income from winnings; income from copyright royalty; income from commercial franchising; income from inheritances, gifts; and other incomes.

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

The tax period for non-resident individuals shall be calculated upon each time income is generated.

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

1. Income-paying organisations and individuals (including also operators of e-commerce platforms and other digital platforms with the online ordering function and the payment function; organisations signing fixed-price agency contracts for insurance, lottery and multi-level marketing activities; organisations signing contracts with individuals performing brokerage activities; organisations and individuals paying income to non-resident individuals; organisations and individuals being Vietnamese partners that refund salary and wage expenses to foreign partners) shall, before paying income amounts to individuals, carry out tax withholding and remit withheld tax amounts of taxpayers, except the income amounts specified in Clause 4 of this Article.

Organisations and individuals specified in Clauses 2, 3 and 4, Article 55; Clauses 3 and 5, Article 56; and Points b and d, Clause 5; and Points c, d and dd, Clause 6, Article 57 of this Decree, and organisations entering into business cooperation with individuals shall carry out tax declaration and tax payment on behalf of taxpayers.

2. To-be-withheld tax amounts shall be determined according to payable personal income tax amounts and provisionally paid personal income tax amounts on income from salaries and wages in accordance with Chapters IV and V of this Decree.

Tax amounts to be withheld, declared and paid on behalf of a resident individual with income from business activities specified in Clause 1 of this Article shall be determined according to the tax rate specified in Clause 3, Article 7 of the Law on Personal Income Tax on assessable turnover generated at the income-paying organisation. The determination of tax amounts to be withheld for business individuals on e-commerce platforms and other digital platforms must comply with the law on tax administration.

If, during the year, an income-paying organisation or individual has yet to withhold tax for an individual, and at the end of the year, such individual becomes obliged to pay tax under regulations, he/she shall carry out tax declaration and payment on an annual basis.

3. Dossiers and procedures for tax withholding, tax declaration and tax payment on behalf of taxpayers must comply with the law on tax administration.

4. Incomes not subject to tax withholding, tax declaration and tax payment on behalf of taxpayers include:

a/ Income from business activities of resident individuals, except income from business activities through operators of e-commerce platform and digital platforms with the online ordering function and the payment function, income from business cooperation activities with organisations, income from fixed-price agency activities for insurance, lottery and multi-level marketing, and income from contract signing brokerage activities with organisations;

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

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

d/ Income from inheritances and gifts.

5. In case an individual receives income paid by an organisation or another individual that has not yet withheld, declared and paid tax on behalf of the former, or an individual receives income paid by a foreign organisation not having made tax registration in Vietnam, and in cases specified in Clause 4 of this Article, the income-receiving individual shall carry out tax declaration and payment in accordance with the law on tax administration and this Decree.

Article 68. Tax finalisation and tax refund

1. Personal income tax finalisation must comply with the law on tax administration and this Decree.

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

a/ The paid tax amount is larger than the payable tax amount;

b/ He/she has paid tax but his/her assessable income does not reach the tax payment threshold;

c/ Other cases as specified in decisions of competent state agencies.

3. Tax finalisation and tax refund for income from business activities of resident individuals must comply with Decree No. 68/2026/ND-CP and amending and supplementing documents, and the law on tax administration.

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

Chapter VII

IMPLEMENTATION PROVISIONS

Article 69. Effect

1. This Decree takes effect on July 1, 2026. The application period in some specific cases is as follows:

a/ The provisions concerning income from business activities, and income from salaries and wages of resident individuals shall apply from the 2026 tax period;

b/ The provisions on mid-shift meal and lunch allowances of Point g, Clause 2, Article 8 of this Decree shall apply from July 1, 2026.

2. This Decree replaces the Government’s Decree No. 65/2013/ND-CP of 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 Decree annuls:

a/ Article 3 of the Government’s Decree No. 91/2014/ND-CP of October 1, 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 of 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 documents shall prevail.

Article 70. Transitional provisions

1. The time limit for registration of dependents and the time limit for submission of supporting documents for dependents for the 2025 tax period and previous periods must comply with legal documents on personal income tax effective before the effective date of this Decree.

2. Taxpayers that have declared and paid tax on income from salaries and wages for the 2026 tax period between January 1, 2026, and before the effective date of this Decree under the legal documents on personal income tax applied before the effective date of this Decree are not required to resubmit monthly or quarterly tax declaration dossiers but shall make adjustments in tax finalisation declaration dossiers of 2026.

Article 71. Implementation responsibility

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

2. Ministers, heads of ministerial-level agencies, Chairpersons of provincial-level People’s Committees, and related organisations and individuals shall implement this Decree.-

On behalf of the Government
For the Prime Minister
Deputy Prime Minister
NGUYEN VAN THANG