Proposing tax exemption for housing support for workers
Over the past time, Lao Dong Newspaper has received feedback from a number of businesses about housing support policies for workers.
A manufacturing enterprise in Ho Chi Minh City said that it has invested in building worker housing to improve living conditions, retain workers and care for welfare. The support amount is equivalent to about 3 million VND/person/month, which is accounted for in the salary scale in the form of allowances or housing benefits.
However, when finalizing personal income tax, this support is included in the taxable income of employees. With a level of about 3 million VND/month, each employee may be added 36 million VND/year to the taxable income. According to businesses, this is a welfare item to support housing for workers, not direct salaries or wages. Tax calculation may reduce the effectiveness of welfare policies and affect the motivation to invest in housing for employees.
Businesses propose that functional agencies study mechanisms for tax exemption and reduction for housing support, in order to encourage businesses to participate in developing worker housing.
New draft proposes expanding the scope of tax exemption
Answering Lao Dong Newspaper about this content, Mr. Truong Ba Tuan - Deputy Director of the Tax, Fee and Charge Policy Supervision Department (Ministry of Finance) - said that the current PIT Law stipulates 10 different groups of income subject to PIT, including income from salaries and wages.
Regarding income from salaries and wages, current law stipulates three main groups: salaries and wages; remuneration and benefits in cash or not in cash in any form; allowances and subsidies, except for some tax-exempt items as prescribed.
However, in order to support workers to access housing, the current PIT law has stipulated that it is not included in PIT taxable income for benefits related to housing, electricity, water and accompanying services (if any) in cases where housing is built by employers to provide free of charge to workers working in industrial parks; housing is built by employers in economic zones, areas with difficult and extremely difficult socio-economic conditions.
According to Mr. Truong Ba Tuan, to encourage businesses to invest in building social housing, worker dormitories and provide stable and long-term accommodation for workers, contributing to attracting labor and in accordance with the State's guidelines and policies, the draft Decree detailing the PIT Law No. 109/2025/QH15 (effective from July 1, 2026) has proposed expanding the scope of application.
Accordingly, the draft stipulates that it is not included in personal income taxable income in cases where employees enjoy benefits from housing built by employers for employees working at the unit, including electricity, water and accompanying services (if any).
Notably, this regulation no longer limits the subjects to only housing built for workers in industrial parks, areas with difficult socio-economic conditions, and areas with particularly difficult socio-economic conditions as currently regulated.
According to representatives of the Ministry of Finance, the implementation of these regulations will contribute to the implementation of housing development policies for workers, promote employers to build houses for workers to use, show the sharing of the State and people, and promote the sustainable development of the domestic rental housing market.
The Ministry of Finance will continue to study policies to support workers
Regarding the above-mentioned business recommendations, Deputy Minister of Finance Nguyen Duc Chi said that the Ministry of Finance continues to listen to opinions in the process of developing and implementing guiding documents for the PIT Law to ensure that regulations are designed appropriately and synchronously.
According to the Deputy Minister, supporting workers with housing is currently being implemented by the Government through many different solutions, not just tax policies.
We completely agree with the need to continue to study the Personal Income Tax Law in a direction that is both in line with international practices and in line with the Party's guidelines and policies to have appropriate regulations, support and aim to help workers have housing" - Deputy Minister Nguyen Duc Chi emphasized.
