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10 incomes subject to personal income tax in 2024 include:
(1) Business income
Business income is income earned from production and business activities in the following areas:
- Income from production and trading of goods and services in all fields and business lines as prescribed by law such as: production and trading of goods; construction; transportation; food and beverage business; service business, including rental services of houses, land use rights, water surfaces, and other assets.
- Income from independent practice of individuals in fields and professions licensed or certified to practice according to the provisions of law.
- Income from agricultural, forestry, salt production, aquaculture and fishing activities that do not meet the conditions for tax exemption as guided in Point e, Clause 1, Article 3 of Circular 111/2013/TT-BTC.
(2) Income from wages and salaries
Income from wages and salaries is the income that employees receive from their employers, including:
(2.1) Salaries, wages and amounts of the nature of salaries or wages in cash or non-cash forms.
(2.2) Allowances and subsidies, except for the following allowances and subsidies:
- Monthly allowances, preferential allowances and one-time allowances according to the law on preferential treatment for people with meritorious services.
- Monthly allowance, one-time allowance for those who participated in the resistance war, defended the fatherland, performed international duties, and youth volunteers who have completed their duties.
- Defense and security allowances; subsidies for armed forces.
- Hazardous and toxic allowances for industries, occupations or jobs in workplaces with hazardous and toxic elements.
- Attraction allowance, regional allowance.
- Allowance for sudden hardship, allowance for work-related accidents, occupational diseases, one-time allowance for childbirth or adoption, maternity benefits, convalescence and health recovery benefits after childbirth, allowance for reduced working capacity, one-time retirement allowance, monthly death benefits, severance allowance, unemployment allowance and other allowances as prescribed by the Labor Code and the Law on Social Insurance.
- Subsidies for social protection beneficiaries according to the provisions of law.
- Service allowance for senior leaders.
- One-time allowance for individuals when transferring to work in areas with particularly difficult socio-economic conditions, one-time support for civil servants working on sea and island sovereignty according to the provisions of law. One-time transfer allowance for foreigners coming to reside in Vietnam, Vietnamese people going to work abroad, Vietnamese people residing long-term abroad returning to work in Vietnam.
- Allowance for village and commune health workers.
- Industry-specific allowances.
Allowances, subsidies and the levels of allowances and subsidies not included in taxable income in (2.2) must be prescribed by competent State agencies.
In case the guiding documents on allowances, subsidies, allowance levels and subsidies apply to the State sector, other economic sectors and other business establishments shall base on the list and levels of allowances and subsidies guided for the State sector to calculate and deduct.
In case the allowance or subsidy received is higher than the allowance or subsidy according to the above instructions, the excess must be included in taxable income.
In particular, one-time relocation allowance for foreigners residing in Vietnam and Vietnamese people working abroad is deducted according to the level stated in the labor contract or collective labor agreement.
(2.3) Remuneration received in the following forms: commission for sales agents, brokerage commission; money for participation in scientific and technical research topics; money for participation in projects and plans; royalties according to the provisions of law on royalties; money for participation in teaching activities; money for participation in cultural, artistic, physical education and sports performances; advertising service fees; other service fees, other remuneration.
(2.4) Money received from participation in business associations, corporate boards of directors, corporate supervisory boards, project management boards, management boards, associations, professional associations and other organizations.
(2.5) Benefits in cash or non-cash other than wages and salaries paid by the employer to which the taxpayer is entitled in any form:
- Housing, electricity, water and other services (if any), excluding: benefits for housing, electricity, water and other services (if any) for housing built by employers to provide free of charge to employees working in industrial parks; housing built by employers in economic zones, areas with difficult socio-economic conditions, areas with especially difficult socio-economic conditions provided free of charge to employees working there.
In case an individual lives at the workplace, taxable income is based on rent or depreciation costs, electricity, water and other services calculated according to the ratio between the area used by the individual and the area of the workplace.
The amount of house rent, electricity, water and other related services (if any) for housing paid by the employer on behalf of the employee shall be included in taxable income according to the actual amount paid on behalf of the employee but shall not exceed 15% of the total taxable income generated (excluding house rent, electricity, water and other related services (if any)) at the unit regardless of the place of income payment.
- The amount of money that the employer purchases for life insurance, other non-compulsory insurance with accumulated premiums; purchases voluntary pension insurance or contributes to the Voluntary Pension Fund for employees.
In case the employer purchases for the employee a non-compulsory insurance product without accrual of insurance premiums (including the case of purchasing insurance from insurance companies not established and operating under Vietnamese law and permitted to sell insurance in Vietnam), the premium for purchasing this insurance product shall not be included in the employee's personal income taxable income. Non-compulsory insurance and non-accumulation of insurance premiums include insurance products such as: health insurance, death insurance (excluding death insurance products with refunds), ... for which the insured does not receive accrual of premiums from participating in the insurance, in addition to the insurance amount or compensation as agreed in the insurance contract paid by the insurance company.
- Membership fees and other service expenses for individuals upon request such as: health care, entertainment, sports, recreation, and aesthetics, specifically as follows:
+ Membership fees (such as golf course membership cards, tennis court membership cards, cultural and artistic club membership cards, sports clubs, etc.) if the card specifically states the name of the individual or group of individuals using it. In case the card is used jointly and does not state the name of the individual or group of individuals using it, it is not included in taxable income.
+ Other service expenses for individuals in health care, entertainment, beauty care... if the payment content clearly states the name of the individual receiving the benefit. In case the service fee payment content does not state the name of the individual receiving the benefit but is paid to a group of employees, it is not included in taxable income.
- The lump sum expenses for office supplies, business trips, telephone, uniforms, etc. are higher than the current State regulations. The lump sum expenses are not included in taxable income in the following cases:
+ For cadres, civil servants and people working in administrative agencies, Party, unions, associations: the fixed expenditure level is applied according to the guidance document of the Ministry of Finance.
+ For employees working in business organizations and representative offices: the applicable lump sum level is consistent with the level of determining taxable income subject to corporate income tax according to documents guiding the implementation of the Law on Corporate Income Tax.
+ For employees working in international organizations and representative offices of foreign organizations: the allowance level is implemented according to the regulations of the international organization and representative office of foreign organization.
- Expenses for transportation services to transport employees from their residence to their workplace and vice versa are not included in the employee's taxable income according to the unit's regulations.
- Payments for training to improve the qualifications and skills of employees in accordance with the employee's professional work or according to the employer's plan are not included in the employee's income.
- Other benefits.
Other benefits that employers pay employees such as: spending on holidays; hiring consulting services, hiring tax declaration for a specific individual or group of individuals; paying for domestic helpers such as drivers, cooks, people who do other household chores under contract...
(2.6) Cash or non-cash bonuses of any kind, including stock bonuses, except for the following bonuses:
- Bonuses accompanying titles conferred by the State, including bonuses accompanying emulation titles, forms of rewards according to the provisions of law on emulation and rewards, specifically:
+ Bonuses accompanying emulation titles such as National Emulation Fighter; Emulation Fighter at the level of Ministries, branches, central organizations, provinces, and centrally-run cities; Emulation Fighter at the grassroots level, Advanced Worker, Advanced Fighter.
+ Bonuses with other forms of rewards.
+ Bonuses with titles awarded by the State.
+ Bonuses accompanying awards given by Associations and organizations under Central and local political organizations, socio-political organizations, social organizations, and socio-professional organizations in accordance with the charter of that organization and in accordance with the provisions of the Law on Emulation and Commendation.
+ Bonuses with Ho Chi Minh Prize and State Prize.
+ Bonus with Medals, Badges.
+ Bonus with Certificate of Merit.
The authority to decide on rewards, the amount of rewards accompanying the above emulation titles and forms of rewards must comply with the provisions of the Law on Emulation and Rewards.
- Bonuses accompanying national and international awards recognized by the Vietnamese State.
- Bonuses for technical improvements, inventions and discoveries recognized by competent State agencies.
- Rewards for detecting and reporting violations of the law to competent State agencies.
(2.7) The following items are not included in taxable income:
- Employer's support for medical examination and treatment of serious illnesses for employees and their relatives.
+ Relatives of the employee in this case include: biological children, legally adopted children, illegitimate children, stepchildren of the wife or husband; wife or husband; biological father, biological mother; father-in-law, mother-in-law (or father-in-law, mother-in-law); stepfather, stepmother; legal adoptive father, adoptive mother.
+ The support level not included in taxable income is the actual amount paid according to the hospital fee payment voucher, but not exceeding the hospital fee payment amount of the employee and the employee's relatives after deducting the payment amount of the insurance organization.
+ The employer paying the support money is responsible for: keeping a copy of the hospital fee payment document with confirmation from the employer (in case the employee and the employee's relatives pay the remaining amount after the insurance organization pays directly to the medical facility) or a copy of the hospital fee payment document; a copy of the health insurance payment document with confirmation from the employer (in case the employee and the employee's relatives pay the entire hospital fee, the insurance organization pays the insurance money to the employee and the employee's relatives) together with the support money payment document for the employee and the employee's relatives suffering from a serious illness.
- Amount received according to regulations on the use of means of transport in State agencies, public service units, Party organizations and unions.
- Amount received under the public housing regime as prescribed by law.
- Amounts received other than salary and wages for participating in giving opinions, appraising and examining legal documents, Resolutions, political reports; participating in inspection and supervision delegations; receiving voters and citizens; uniforms and other work related to directly serving the activities of the National Assembly Office, the Nationalities Council and Committees of the National Assembly, National Assembly Delegations; the Central Office and Party Committees; the Office of the City Party Committee, the Provincial Party Committee and Committees of the City Party Committee, the Provincial Party Committee.
- Mid-shift meals and lunch money are paid by employers who organize mid-shift meals and lunch for employees in the form of direct cooking, purchasing meals, and providing meal vouchers.
In case the employer does not organize mid-shift meals or lunch but pays for the employee, it is not included in the taxable income of the individual if the level of payment is in accordance with the guidance of the Ministry of Labor, War Invalids and Social Affairs. In case the level of payment is higher than the guidance of the Ministry of Labor, War Invalids and Social Affairs, the excess amount must be included in the taxable income of the individual.
The specific expenditure levels applicable to State-owned enterprises and organizations, units under administrative agencies, the Party, unions, and associations shall not exceed the guidelines of the Ministry of Labor, War Invalids and Social Affairs. For non-State enterprises and other organizations, the expenditure levels shall be decided by the unit head in agreement with the union chairman, but shall not exceed the levels applicable to State-owned enterprises.
- The amount of money for round-trip airfare paid by the employer on behalf of (or for) foreign employees working in Vietnam, and Vietnamese employees working abroad on annual leave once a year.
The basis for determining the amount of money to buy an air ticket is the labor contract and the amount of money to pay for an air ticket from Vietnam to the country of nationality of the foreigner or the country where the foreigner's family lives and vice versa; the amount of money to pay for an air ticket from the country where the Vietnamese person is working to Vietnam and vice versa.
- Tuition fees for children of foreign workers working in Vietnam to study in Vietnam, and children of Vietnamese workers working abroad to study abroad from preschool to high school are paid by the employer.
- Personal income received from sponsoring associations and organizations is not included in personal income tax if the individual receiving the sponsorship is a member of the association or organization; the sponsorship funds are used from the State budget or are managed according to State regulations; the creation of literary and artistic works, scientific research projects... to carry out the State's political tasks or according to the program of activities in accordance with the Charter of that association or organization.
- Payments made by employers to serve the mobilization and rotation of foreign employees working in Vietnam according to the provisions of the labor contract, complying with the standard labor schedule according to international practices of some industries such as oil and gas, mining.
The basis for determination is the labor contract and the payment for airfare from Vietnam to the country where the foreigner resides and vice versa.
Example 1: Mr. X is a foreigner who was transferred by oil and gas contractor Y to work at a drilling rig on the continental shelf of Vietnam. According to the provisions of the labor contract, Mr. X's working cycle at the drilling rig is 28 consecutive days, followed by 28 days off. Contractor Y pays Mr. X for airfare from abroad to Vietnam and vice versa each time he changes shifts, the cost of providing a helicopter to pick up Mr. X from the mainland of Vietnam to the drilling rig and vice versa, and the cost of accommodation in case Mr. X waits for the helicopter flight to the drilling rig to work. These amounts are not included in Mr. X's personal income taxable income.
- The amount of money received by the organization or individual paying income for funerals and weddings for the employee and his/her family is in accordance with the general regulations of the organization or individual paying income and is consistent with the level of income subject to corporate income tax according to the documents guiding the implementation of the Law on Corporate Income Tax.
(3) Income from capital investment
Income from capital investment is personal income received in the forms of:
- Interest received from lending to organizations, enterprises, households, business individuals, and groups of business individuals under loan contracts or loan agreements, except for deposit interest received from credit institutions and foreign bank branches according to the instructions in Section g.1, Point g, Clause 1, Article 3 of Circular 111/2013/TT-BTC.
- Dividends received from capital contribution to purchase shares.
- Income received from capital contribution to limited liability companies, partnerships, cooperatives, joint ventures, business cooperation contracts and other forms of business as prescribed by the Law on Enterprises and the Law on Cooperatives; income received from capital contribution to establish credit institutions as prescribed by the Law on Credit Institutions; capital contribution to securities investment funds and other investment funds established and operating as prescribed by law.
Not included in taxable income from capital investment are profits of private enterprises and single-member limited liability companies owned by individuals.
- The increase in the value of contributed capital received when dissolving an enterprise, converting its operating model, dividing, separating, merging, consolidating an enterprise or when withdrawing capital.
- Income received from interest on bonds, treasury bills and other valuable papers issued by domestic organizations, except for income according to the instructions in sections g.1 and g.3, point g, clause 1, Article 3 of Circular 111/2013/TT-BTC.
- Income received from capital investment in other forms, including capital contributions in kind, reputation, land use rights, inventions and patents.
- Income from dividends paid in shares, income from capital gains.
(4) Income from capital transfer
Income from capital transfer is personal income received including:
- Income from transfer of capital contributions in limited liability companies (including single-member limited liability companies), partnerships, business cooperation contracts, cooperatives, people's credit funds, economic organizations, and other organizations.
- Income from securities transfer, including: income from transfer of shares, stock purchase rights, bonds, treasury bills, fund certificates and other types of securities as prescribed in Clause 1, Article 6 of the Securities Law. Income from transfer of shares of individuals in joint stock companies as prescribed in Clause 2, Article 6 of the Securities Law and Article 120 of the Enterprise Law.
- Income from capital transfer in other forms.
(5) Income from real estate transfer
Income from real estate transfer is income received from the transfer of real estate including:
- Income from land use rights transfer.
- Income from transfer of land use rights and assets attached to land. Assets attached to land include:
+ Housing, including future housing.
+ Infrastructure and construction works attached to land, including future construction works.
+ Other assets attached to land include assets that are agricultural, forestry and fishery products (such as crops and livestock).
- Income from transfer of ownership of housing, including housing formed in the future.
- Income from transfer of land lease rights and water surface lease rights.
- Income from contributing capital in the form of real estate to establish a business or increase the business's production capital according to the provisions of law.
- Income from authorizing real estate management where the authorized person has the right to transfer the real estate or has the same rights as the real estate owner as prescribed by law.
- Other income received from real estate transfer in any form.
Regulations on housing and future construction works are implemented according to the law on real estate business.
(6) Income from winnings
Income from winning prizes is money or goods that individuals receive in the following forms:
- Lottery prizes paid by lottery companies.
- Winning prizes in promotional forms when participating in the purchase and sale of goods and services according to the provisions of the Commercial Law.
- Winning prizes in forms of betting and wagering permitted by law.
- Winning prizes in games, contests with prizes and other forms of winning prizes organized by economic organizations, administrative agencies, career agencies, unions and other organizations and individuals.
(7) Copyright income
Income from copyright is income received from transferring, assigning ownership, and rights to use intellectual property objects according to the provisions of the Law on Intellectual Property; income from technology transfer according to the provisions of the Law on Technology Transfer.
Specifically as follows:
- The subjects of intellectual property rights are implemented according to the provisions of Article 3 of the Law on Intellectual Property and related guiding documents, including:
+ Subjects of copyright include literary works, artistic works, and scientific works; subjects of rights related to copyright include: video recordings, audio recordings of broadcast programs, and satellite signals carrying encrypted programs.
+ Objects of industrial property rights include inventions, industrial designs, semiconductor integrated circuit layout designs, trade secrets, trademarks, trade names and geographical indications.
+ The subject of rights to plant varieties is breeding materials and harvested materials.
- Subjects of technology transfer are implemented according to the provisions of Article 7 of the Law on Technology Transfer, including:
+ Transfer of technical know-how.
+ Transfer of technical knowledge about technology in the form of technological solutions, technological processes, technical solutions, formulas, technical parameters, drawings, technical diagrams, computer programs, and data information.
+ Transfer of solutions to rationalize production and innovate technology.
Income from transfer, assignment of intellectual property rights and technology transfer mentioned above includes re-transfer cases.
(8) Income from franchising
Franchising is a commercial activity in which the franchisor allows and requires the franchisee to conduct the purchase and sale of goods and provision of services on its own according to the franchisor's conditions in the franchise contract.
Income from franchising is income that individuals receive from the above mentioned franchise contracts, including cases of franchise re-franchising according to the provisions of law on franchising.
(9) Income from inheritance
Income from inheritance is the income that an individual receives according to a will or according to the provisions of the law on inheritance, specifically as follows:
- For inheritance of securities including: stocks, stock purchase rights, bonds, treasury bills, fund certificates and other types of securities as prescribed by the Law on Securities; individual shares in joint stock companies as prescribed by the Law on Enterprises.
- For inheritance, the capital in economic organizations and business establishments includes: capital contributions in limited liability companies, cooperatives, partnerships, business cooperation contracts; capital in private enterprises, individual businesses; capital in associations and funds permitted to be established under the provisions of law or the entire business establishment if it is a private enterprise or individual business establishment.
- For inheritance of real estate including: land use rights; land use rights with assets attached to land; house ownership rights, including future houses; infrastructure and construction works attached to land, including future construction works; land lease rights; water surface lease rights; other income received from inheritance of real estate in any form; except income from inheritance of real estate according to the guidance at Point d, Clause 1, Article 3 of Circular 111/2013/TT-BTC.
- For inheritance of other assets, ownership or usage rights must be registered with the State management agency such as: cars; motorbikes, motorcycles; ships, including barges, canoes, tugboats, push boats; boats, including yachts; airplanes; hunting guns, sports guns.
(10) Income from receiving gifts
Income from receiving gifts is the income an individual receives from domestic and foreign organizations and individuals, specifically as follows:
- For receiving gifts of securities including:
+ Stocks, stock options, bonds, treasury bills, fund certificates and other types of securities as prescribed by the Law on Securities;
+ Shares of individuals in joint stock companies according to the provisions of the Enterprise Law.
- For receiving gifts that are capital in economic organizations and business establishments, including: capital in limited liability companies, cooperatives, partnerships, business cooperation contracts, capital in private enterprises, individual businesses, capital in associations and funds permitted to be established under the provisions of law or the entire business establishment if it is a private enterprise or individual business establishment.
- For receiving gifts of real estate including: land use rights; land use rights with assets attached to the land; house ownership rights, including future houses; infrastructure and construction works attached to land, including future construction works; land lease rights; water surface lease rights; other income received from inheritance of real estate in any form; except for income from gifts of real estate as guided in Point d, Clause 1, Article 3 of Circular 111/2013/TT-BTC.
- For gifts of other assets, ownership or usage rights must be registered with the State management agency such as: cars; motorbikes, motorcycles; ships, including barges, canoes, tugboats, push boats; boats, including yachts; airplanes; hunting guns, sports guns.
Legal basis: Article 2 of Circular 111/2013/TT-BTC, amended and supplemented by Circular 92/2015/TT-BTC, Circular 25/2018/TT-BTC.
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