Personal income tax: Exempt for 14 types of income.

This includes income from interest on deposits at banks and credit institutions, and from interest on life insurance contracts.

The Decree detailing certain provisions of the Law on Personal Income Tax and the Law amending and supplementing certain provisions of the Law on Personal Income Tax, recently issued by the Ministry of Finance, clearly states the types of income that are exempt from tax.

Accordingly, income from the transfer of real estate (including houses and construction works under construction as stipulated by the law on real estate business) between spouses; biological parents and their children; adoptive parents and their adopted children; father-in-law and mother-in-law and daughter-in-law; father-in-law and mother-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings.

Income from the transfer of housing, land use rights, and assets attached to residential land by individuals is exempt if the transferor owns only one house and land use right in Vietnam. This exemption applies only to individuals who own only one house and land use right in Vietnam. The determination of the house and land is based on documents proving land use rights, ownership of the house and structures attached to the land, and the actual management and use of the house and land.

Income derived from the value of land use rights granted to individuals by the State, with land allocated free of charge or with reduced land use fees as prescribed by law.

Income from inheritance or gifts of real estate (including houses and future construction projects as stipulated by the law on real estate business) between spouses; biological parents and their children; adoptive parents and their adopted children; father-in-law and mother-in-law and daughter-in-law; father-in-law and mother-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings.

Income of households and individuals directly involved in agricultural, forestry, salt production, aquaculture, and fishing activities that have not been processed into other products or have only undergone basic processing (subject to conditions).

Income from the conversion of agricultural land allocated by the State to households and individuals for production is not exempt from tax. However, if the conversion of agricultural land originates from transfer, inheritance, or gifts and generates income, it is not considered tax-exempt income.

Income from interest on deposits at banks and credit institutions, and income from interest on life insurance contracts.

Income from remittances.

The portion of wages and salaries earned for night work and overtime that is higher than the wages and salaries for daytime work and work during regular hours as stipulated by law is also exempt from tax.

Pension payments are made by the Social Insurance Fund as stipulated by the Social Insurance Law, monthly pension payments from voluntary retirement funds, and monthly income from voluntary retirement insurance products. Individuals residing and working in Vietnam are exempt from tax on pension payments received from foreign sources.

Income from scholarships.

Income from compensation under life insurance, non-life insurance, health insurance, compensation for work-related accidents, state compensation, and other compensation as prescribed by law.

Income is received from charitable funds established or recognized by competent state authorities, operating for charitable and humanitarian purposes, and not for profit.

Income received from foreign aid for charitable and humanitarian purposes, in the form of government and non-government aid, is subject to approval by competent state authorities.

In addition, taxpayers facing difficulties due to natural disasters, fires, accidents, or serious illnesses affecting their ability to pay taxes may be considered for tax reductions commensurate with the extent of the damage, but not exceeding the amount of tax payable.

According to (vov.vn) - LT