5-Year PIT exemption for high-quality digital technology industry human resources

The Law on Personal Income Tax No. 109/2025/QH15 has added many new tax exemption and reduction policies to encourage the development of high technology and the digital technology industry.

Pursuant to Clause 2, Article 5 of the 2025 Law on Personal Income Tax individuals who are high-quality digital technology industry human resources shall be exempt from personal income tax for a period of 05 years for income from wages and salaries arising from the following activities:

• Projects engaging in digital technology industry activities within centralized digital technology zones;
• Projects for research and development, production of key digital technology products, semiconductor chips, and artificial intelligence systems;
• Activities of training human resources for the digital technology industry.

The Law on Personal Income Tax 2007 and its amending Laws did not previously have a specific PIT exemption policy for digital technology industry human resources, with incentives primarily provided through corporate income tax or investment policies.

Furthermore, according to Clause 3, Article 5, individuals who are high-tech human resources carrying out research and development activities in high technology or strategic technology falling under the List in accordance with the law on high technology shall also be exempt from PIT for a period of 05 years for income from wages and salaries.

Previously, incentives for high-tech human resources were only indirectly reflected in laws on high technology, investment, science, and technology, without specific provisions for PIT exemption in tax laws.

The 2025 Law on Personal Income Tax shall take effect on July 01, 2026. Provisions related to income from business, wages, and salaries of residents shall apply from the 2026 tax calculation period.