Which sources of income will be exempt from personal income tax?

In the draft law, the Ministry of Finance proposes to exempt the following types of income from personal income tax and exclude them from taxable income:

-Income from the transfer, inheritance, or gifting of real estate between spouses; biological parents and children; adoptive parents and adopted children; parents-in-law and daughters-in-law; parents-in-law and sons-in-law; grandparents and grandchildren; and siblings.

Personal income tax exemption for inheritance and gifts of real estate

-Income from the transfer of residential housing, residential land use rights, and assets attached to residential land for individuals who own only one residential property or land. 

-Income from the value of land use rights allocated by the State to individuals.

-Income of households or individuals directly engaged in producing unprocessed or minimally processed agricultural products, planted forests, livestock, aquaculture, fishing, or salt production; income from dividends of cooperative members, agricultural cooperative unions, or individual farmers participating in "large-scale field" contracts with enterprises for production forestry or aquaculture.

-Income from the conversion of agricultural land allocated by the State to households or individuals for production purposes.

-Income from interest on government bonds, treasury bills, deposits at credit institutions, and life insurance contracts; income from remittances.

-The portion of wages for night shifts or overtime paid at a higher rate than daytime or regular-hour wages, as stipulated by law.

-Pensions paid by the Social Insurance Fund; pensions from supplementary pension funds or voluntary pension funds; income from scholarships.

-Income from compensation under life and non-life insurance contracts, occupational accident compensation, state compensation, and other compensations as prescribed by law.

- Income received from charitable organizations or funds established or recognized by competent state authorities, operating for charitable or humanitarian purposes without profit motives.

- Income from foreign aid for charitable or humanitarian purposes, in the form of government or non-governmental aid, approved by competent state authorities.

- Income from wages or salaries of Vietnamese crew members working for foreign shipping companies or Vietnamese shipping companies engaged in international transport.

- Income of individuals who own or have the right to use fishing vessels, or work on vessels, from providing goods or services directly supporting offshore fishing or aquaculture activities.

- Income from the transfer of emission reduction certificates or carbon credits issued to individuals for the first time; income from interest on green bonds; income from the initial transfer of green bonds after issuance.

- Income from wages or salaries for performing science and technology tasks funded by the state budget; income from wages or salaries for performing science, technology, and innovation tasks funded by the state budget; income from legislative activities.

- Income of individual investors, experts working for innovative startup projects, founders of innovative startup enterprises, or individual investors contributing capital to venture capital funds.

- Income from intellectual property rights related to science, technology, and innovation tasks when the results are commercialized, as stipulated by laws on science, technology, innovation, and intellectual property.

- Income from the transfer of shares, capital contributions, or rights to purchase shares or capital contributions in innovative startup enterprises.

- Income of private enterprises or single-member limited liability companies owned by individuals, after corporate income tax has been paid.