Citizens carry out tax procedures at Tax Branch 2 of Ho Chi Minh City __ Photo: https://ttbc-hcm.gov.vn

LAW No. 63/2025/L-CTN

On Personal Income Tax

Pursuant to the Constitution of the Socialist Republic of Vietnam, which has a number of articles amended and supplemented under Resolution No. 203/2025/QH15;

The National Assembly promulgates the Law on Personal Income Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides taxpayers, taxable incomes, incomes eligible for exemption or reduction, and tax bases, with respect to personal income tax.

Article 2. Taxpayers

1. Personal income tax payers are residents who earn taxable incomes specified in Article 3 of this Law inside and outside the territory of Vietnam and non-residents who earn taxable incomes specified in Article 3 of this Law inside the territory of Vietnam.

2. Resident is a person who satisfies one of the following conditions:

a/ Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of his/her presence in Vietnam;

b/ Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under a fixed-term rent contract.

3. Non-resident is a person who does not satisfy any of the conditions specified in Clause 2 of this Article.

4. The Government shall detail this Article.

Article 3. Taxable incomes

Incomes liable to personal income tax include the following kinds of income, except incomes eligible for tax exemption specified in Article 4 of this Law:

1. Incomes from business activities, including:

a/ Incomes from goods production and trading or service provision;

b/ Incomes from independent practice activities of individuals possessing practice licenses or certificates in accordance with law.

c/ Income from agency and brokerage activities, or business cooperation with organisations;

d/ Income from e-commerce business activities or digital platform-based business activities.

2. Incomes from salaries and wages, including:

a/ Salaries, wages and amounts of salary or wage nature;

b/ Remuneration and other benefits, whether in cash or not, in any form;

c/ Allowances, subsidies and other incomes except allowances and subsidies paid in accordance with the law on preferential treatment for persons with meritorious services; defence or security-related allowances; hazard or danger level-based allowances for persons working in sectors, occupations or jobs at places where exist hazardous or dangerous elements; allowances for attraction of workers for areas with extremely difficult socio-economic conditions and region-based allowances in accordance with law; allowances, subsidies and cost-of-living expenses paid by overseas Vietnamese missions; allowances for sudden difficulties, allowances for those suffering occupational accidents or diseases, lump-sum maternity or child adoption allowances; allowance for working capacity decrease, lump-sum retirement allowances, monthly survivorship allowances and other allowances in accordance with the law on social insurance; severance and job loss allowances; social relief allowances, and other allowances, subsidies and incomes not of salary or wage nature as specified by the Government.

3. Incomes from capital investment, including:

a/ Loan interests;

b/ Dividends;

c/ Incomes from capital investment in other forms.

4. Incomes from capital transfer, including:

a/ Incomes from the transfer of capital contributions in economic organisations;

b/ Incomes from the transfer of securities;

c/ Incomes from the transfer of capital in other forms.

5. Incomes from the transfer of real estate, including:

a/ Incomes from the transfer of the rights to use land and land-attached assets;

b/ Incomes from the transfer of the right to own or use houses;

c/ Incomes from the transfer of the right to rent land or the right to rent water surface;

d/ Other incomes from the transfer of real estate in any form.

6. Incomes from prize winnings, including:

a/ Lottery winnings;

b/ Sales promotion winnings;

c/ Betting winnings;

d/ Winnings in games and contests with offered prizes and other forms of winnings, except casino winnings.

7. Incomes from copyright, including:

a/ Incomes from the assignment or licensing of the right to use subject matters of intellectual property rights;

b/ Incomes from technology transfer.

8. Incomes from commercial franchising.

9. Incomes from inheritances or gifts that are securities, or capital contributions in economic organisations or business establishments, real estate and assets subject to ownership registration or use registration.

10. Other incomes, including:

a/ Incomes from the transfer of Vietnam national domain names “.vn”;

b/ Incomes from the transfer of greenhouse gas emission reductions and carbon credits;

c/ Incomes from the transfer of vehicle registration plates obtained through auction in accordance with law;

d/ Incomes from the transfer of digital assets;

dd/ Incomes from the transfer of gold bullion.

The Government shall provide the value threshold of gold bullion liable to tax, the timing of tax imposition, and the adjustment of personal income tax rates applicable to the transfer of gold bullion in line with the roadmap for the management of the gold market.

11. The Government shall detail this Article and provide the conversion of taxable incomes received neither in cash nor in Vietnam dong.

Article 4. Tax-exempt incomes

1. Incomes from the transfer or receipt of inheritances or gifts that are real estate between spouses; between parents and their offspring children; between adoptive parents and their adopted children; between parents-in-law and daughters-in-law or sons-in-law; between paternal grandparents and their paternal grandchildren; between maternal grandparents and their maternal grandchildren; and among siblings.

2. Incomes from the transfer of houses, the rights to use residential land and residential land-attached assets of individuals, for an individual having only one house or residential land plot in Vietnam.

3. Incomes from the value of land use rights of individuals with land allocated by the State.

4. Incomes of households and individuals directly engaged in the production of crops, planted forests, livestock production, cultured or fished aquatic resources that have not yet been processed into other products or have just been preliminarily processed; and salt production; incomes from dividends of members of agricultural cooperatives and unions of agricultural cooperatives, and individuals who are farmers entering into contracts with enterprises to participate in “Large Field Model” schemes, planting of production forests, and aquaculture.

5. Incomes from conversion of agricultural land allocated by the State to households and individuals for production.

6. Incomes from government bond interests, municipal bond interests, interests on deposits at credit institutions, and interests from life insurance contracts.

7. Incomes from foreign exchange remittances.

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

9. Pensions paid by the Social Insurance Fund; incomes paid by supplementary pension funds and voluntary pension funds.

10. Incomes from scholarships, including:

a/ Scholarships granted from the state budget;

b/ Scholarships granted by domestic and foreign organisations under their study promotion programs.

11. Incomes from indemnities paid under life insurance contracts or non-life insurance contracts, compensations for occupational accidents, state liability amounts and other compensation amounts as provided by law.

12. Incomes received from charity organisations and funds licensed or recognised by competent state agencies and operating for charity, humanitarian or non-profit purposes.

13. Incomes received from governmental or non-governmental foreign aid for charity or humanitarian purposes as approved by competent state agencies.

14. Incomes from salaries and wages of Vietnamese seafarers working for foreign shipping companies or for Vietnamese shipping companies engaged in international shipping.

15. Incomes from the provision of goods and services directly serving offshore fishing activities, of individuals being vessel owners, individuals holding the right to use fishing vessels, and individuals working on board vessels.

16. Incomes from the initial transfer of individuals’ recognised greenhouse gas emission reductions or carbon credits granted to individuals; incomes from interest on green bonds; and incomes from the initial transfer of green bonds following their issuance.

17. Incomes from salaries and wages earned from the performance of science, technology and innovation tasks.

18. Incomes from copyright of science, technology and innovation tasks when the outcomes of such tasks are commercialised in accordance with the law on science, technology and innovation and the law on intellectual property.

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

20. Incomes from salaries and wages of foreign experts working for programmes and projects funded by non-refundable official development assistance and programmes and projects of foreign non-governmental organisations in Vietnam; Vietnamese individuals working for representative offices of international organisations within the United Nations system in Vietnam; and individuals participating in United Nations peacekeeping forces.

21. Incomes, after corporate income tax has been paid, of individuals being owners of sole proprietorships or individuals being owners of single-member limited liability companies.

22. The Government shall detail this Article.

Article 5. Other cases eligible for tax exemption or tax reduction

1. Taxpayers who suffer damage caused by disasters, epidemics, fires, accidents or severe diseases, affecting their tax payment ability, are entitled to tax reduction corresponding to the extent of damage but not exceeding payable tax amounts.

2. Personal income tax exemption for 5 years will be granted for incomes from salaries and wages of individuals who are high-quality human resources in the digital technology industry; these include incomes from:

a/ Projects on digital technology industry activities in digital technology parks;

b/ Projects on research and development, and manufacture of key digital technology products, semiconductor chips and artificial intelligence systems;

c/ Activities involving the training of human resources for the digital technology industry.

3. Personal income tax exemption for 5 years may be granted for incomes from salaries and wages of individuals who are hi-tech personnel engaged in 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 or the List of strategic technology products in accordance with the law on high technologies.

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

5. A 50%-reduction of personal income tax may be granted for dividends received by individual investors from securities investment funds and real estate investment funds established in accordance with the Law on Securities for a period provided by the Government.

6. The Government shall detail this Article.

Article 6. Tax administration for personal income tax

Pursuant to this Law, the Government shall provide annual tax periods for incomes from business activities, salaries and wages of residents; tax periods upon each time of income generation for other incomes of residents and non-residents; time of determination of assessable incomes; tax account-finalisation; tax refund in case individuals’ paid tax amounts are larger than payable tax amounts or individuals’ incomes are not liable to tax; responsibility to withhold, declare and pay tax on behalf of taxpayers in accordance with the Law on Tax Administration.

(To be continued)

* Source: Official Gazette, Issue Nos 07-12/2026