Three types of income will be exempt from personal income tax starting in October 2025.

From October 1st, the Law on Science, Technology and Innovation officially came into effect. This law stipulates three types of income that are exempt from personal income tax. Specifically, Clause 3 of Article 71 of this Law adds Clauses 18, 19, and 20 after Clause 17, Article 4 of the 2007 Personal Income Tax Law, listing three types of income that are exempt from personal income tax.

This includes income from salaries and wages earned from performing scientific, technological, and innovative tasks; income from copyrights of scientific, technological, and innovative tasks when the results of the tasks are commercialized in accordance with the law on science, technology, and innovation and the law on intellectual property; income of individual investors, experts working for innovative startup projects, founders of innovative startup businesses, and individual investors contributing capital to venture capital funds.

In the draft Personal Income Tax Law (replacement) currently being reviewed by the Ministry of Finance, the agency also proposed exempting personal income tax on salaries and wages earned from scientific, technological, and innovative tasks using state budget funds to ensure consistency and uniformity with the Law on Science, Technology, and Innovation. Simultaneously, it proposed exempting income tax for a period of two years and reducing the tax payable by 50% for the following four years for income from salaries and wages received by experts and scientists from innovative startups, research and development centers, innovation centers, and intermediary organizations supporting innovative startups.

Simultaneously, there will be a 50% reduction in personal income tax on salaries and wages for individuals who are high-tech personnel working in enterprises and projects in the fields of high technology, high-tech applications, information technology, science, technology, innovation, digital transformation, and some priority development areas as directed by the Party and the State. The Government will specify the details of this...