Vietnamese
Decree No. 20/2026/ND-CP provides for special personal income tax (PIT) incentives applicable to experts and scientists working in innovative start-up enterprises and research and innovation organizations in the private sector.
Pursuant to Clause 2 Article 8 of Decree No. 20/2026/ND-CP, experts and scientists as defined under the law on science, technology and innovation who earn income from salaries or wages paid by innovative start-up enterprises, research and development (R&D) centers, or intermediary organizations supporting innovative start-ups shall be entitled to the following PIT incentives:
Exemption from personal income tax for a period of 02 years (24 consecutive months);
A 50% reduction of payable personal income tax for the subsequent 04 years (48 consecutive months).
The period of tax exemption and reduction shall be calculated consecutively from the month in which eligible income first arises. Where income arises during a month, such month shall still be counted as a full month for the purpose of determining the incentive period.
The Decree also clearly stipulates the principles for determining the amount of PIT eligible for exemption or reduction in cases where an individual simultaneously earns salary or wage income eligible for incentives under this policy and other salary or wage income not eligible for such incentives.
Accordingly, the amount of tax eligible for exemption or reduction shall be determined in proportion to the incentivized income over the total taxable income, ensuring proper and adequate application of incentives and avoiding overlapping tax incentives.
