Among the most notable provisions, the decree identifies 22 categories of income that are exempt from personal income tax (PIT):

Income from the transfer, inheritance or receipt as gifts of real estate.

Income from the transfer of an individual's only residential house, residential land-use rights and assets attached to residential land.

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

Income earned by households and individuals directly engaged in the production of crops, planted forests, livestock, aquaculture and fishing products that have not been processed into other products or have undergone only basic processing, as well as salt production.

Income from dividends received by members of agricultural cooperatives and cooperative unions, and by farmers who sign contracts with enterprises participating in large-scale farming models, production forests or aquaculture projects.

Income from the exchange of agricultural land allocated by the State to households and individuals for agricultural production.

Interest income from government bonds, local government bonds, deposits at credit institutions, and life insurance contracts.

Remittances received from overseas.

Wages and salaries earned from night shifts, overtime work, and payments made for unused annual leave.
Pension payments made by the Social Insurance Fund, as well as income paid by supplementary pension funds and voluntary pension funds.

Scholarship income.

Compensation received from life insurance and non-life insurance contracts, occupational accident compensation, State compensation, and other compensation payments.

Income received from charitable organizations and charitable funds.

Income derived from foreign aid.

Wages and salaries earned by Vietnamese seafarers.

Income from supplying goods and services directly supporting offshore fishing activities.

Income from the transfer of emission reduction certificates and carbon credits, interest earned from green bonds, and income from the transfer of green bonds.

Wages and salaries earned from carrying out scientific research, technological development and innovation activities.

Income from copyright related to scientific, technological and innovation tasks.

Income earned by individual investors and experts participating in innovative startup projects, founders of innovative startup enterprises, and individual investors contributing capital to venture capital funds.

Wages and salaries earned by foreign experts working on programs and projects financed by non-refundable Official Development Assistance (ODA) funds or foreign non-governmental projects in Vietnam; Vietnamese citizens working at representative offices of United Nations system organizations in Vietnam; and individuals participating in United Nations peacekeeping missions.

Income earned by sole proprietors and individuals who own single-member limited liability companies.

Tax exemption for transfers, inheritance and gifts of real estate

The decree grants personal income tax exemptions for income derived from the transfer, inheritance or receipt as gifts of real estate - including residential houses and future construction projects as defined under Vietnam's real estate business regulations - when transactions take place between:

Husband and wife;

Biological parents and biological children;

Adoptive parents and adopted children;

Parents-in-law and daughters-in-law (including after the son's death);

Parents-in-law and sons-in-law (including after the daughter's death);

Grandparents and grandchildren;

Biological siblings.

Where real estate - including residential housing and future construction projects—is divided between spouses following divorce through mutual agreement or a court ruling, income arising from the division of those assets is also exempt from personal income tax.

Tax exemption procedures and required documentation shall be implemented in accordance with Vietnam's tax administration regulations.

The decree also exempts personal income tax on income from the transfer of residential houses, residential land-use rights and assets attached to residential land where the transferor owns only one residential property in Vietnam.

This exemption does not apply to transfers involving future residential houses or future construction projects.

Individuals seeking the exemption on the transfer of their only residential property in Vietnam must also satisfy other specific conditions prescribed by law.

Tran Thuong