According to Article 3 of Circular 111/2013/TT-BTC (amended by Circular 92/2015/TT-BTC), there are 16 income items exempted from personal income tax in 2024, specifically:
1. Income from real estate transfer, including:
Future housing, future construction works according to the law on real estate business between husband and wife; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and grandson; maternal grandfather, maternal grandmother and granddaughter; siblings with each other.
However, real estate created by the husband or wife during the marriage is determined to be the common property of the husband and wife. When the divorce is divided by agreement or by court judgment, the division of this property is exempt from tax.
2. Income from transfer of residential houses, land use rights and assets attached to residential land of individuals (in case the transferor has only one residential house and land use rights in Vietnam).
Individuals transferring houses and land use rights exempted from tax must simultaneously satisfy the conditions of having only one house ownership or one land use right (including cases where there is a house or construction attached to that land) at the time of transfer.
At the same time, for at least 183 days, individuals will have the right to own the house and the right to use residential land up to the time of transfer.
The only residential house or land that is exempt from tax is declared by the individual transferring the real estate and is responsible for it. If found to be incorrect, the tax will be collected and the violation of tax law will be fined according to the provisions of the law on tax administration.
In case of transferring houses and construction works formed in the future, they are not exempt from personal income tax according to the instructions.
3. Income from the value of land use rights of individuals who are allocated land by the State without having to pay or with reduced land use fees according to the provisions of law.
In Article 12 of Circular 111/2013/TT-BTC, in case an individual is exempted or reduced from land use fees when allocating land, if transferring the land area exempted or reduced from land use fees, he/she must declare and pay tax on income from real estate transfer.
4. Income from receiving inheritance or gifts of real estate (including houses and future construction works according to the provisions of law on real estate business) between: husband and wife; biological father, biological mother and biological child; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; paternal grandfather, paternal grandmother and grandchild, maternal grandfather, maternal grandmother and grandchild; siblings.
5. Income from converting agricultural land to rationalize agricultural production but not changing the land use purpose of households and individuals directly engaged in agricultural production, assigned by the State for production.
6. Income of households and individuals directly involved in agricultural production, forestry, salt making, aquaculture, and fishing activities that are unprocessed or have only undergone conventional preliminary processing and have not been processed into other products.
7. Income from interest on deposits at credit institutions, foreign bank branches, interest from life insurance contracts; income from interest on government bonds.
Tax-exempt deposit interest as prescribed in this point is personal income received from interest on deposits in Vietnamese Dong, gold, and foreign currency at credit institutions and foreign bank branches established and operating under the provisions of the Law on Credit Institutions in the forms of demand deposits, term deposits, savings deposits, deposit certificates, promissory notes, treasury bills, and other forms of receiving deposits on the principle of full repayment of principal and interest to depositors as agreed.
The basis for determining tax-free income from interest on deposits is savings books (or savings cards), deposit certificates, promissory notes, treasury bills and other documents on the principle of full repayment of principal and interest to depositors according to the agreement.
Interest from life insurance contracts is the interest that individuals receive under life insurance contracts from insurance companies.
The basis for determining tax-free income from life insurance interest is the certificate of interest payment from the life insurance contract.
Government bond interest is the interest that individuals receive from purchasing government bonds issued by the Ministry of Finance.
The basis for determining tax-free income for income from government bond interest is the face value, interest rate and maturity on the government bond.
8. Tax-exempt income from remittances is the amount of money an individual receives from abroad sent back to relatives in the country by relatives who are Vietnamese residing abroad or Vietnamese people working, working or studying abroad;
In case an individual receives money from abroad sent by a foreign relative that meets the conditions for encouraging remittances to the country according to the regulations of the State Bank of Vietnam, he/she is also exempt from tax.
The basis for determining tax-exempt income at this point is documents proving the source of money received from abroad and payment vouchers from the paying organization (if any).
9. Income from wages and salaries for night work and overtime work is paid higher than wages and salaries for day work and working within hours as prescribed by the Labor Code.
Organizations and individuals paying income must make a list clearly reflecting the time spent working at night, overtime, and the amount of additional wages paid for working at night, overtime paid to employees. This list is kept at the income paying unit and presented upon request by the tax authority.
10. Pension paid by the Social Insurance Fund according to the provisions of the Law on Social Insurance; pension received monthly from the Voluntary Pension Fund.
Individuals living and working in Vietnam are exempt from tax on pensions paid from abroad.
11. Income from scholarships, including scholarships received from the State budget; Scholarships received from domestic and foreign organizations (including living expenses) under the organization's scholarship support program.
Organizations that pay scholarships to individuals mentioned in this point must keep the scholarship granting decisions and scholarship payment documents. In case individuals receive scholarships directly from foreign organizations, individuals receiving income must keep documents and documents proving that the income received is a scholarship granted by foreign organizations.
12. Income from compensation for life insurance, non-life insurance, health insurance contracts; compensation for work accidents; compensation and support according to the provisions of law on compensation, support, and resettlement; State compensation and other compensation according to the provisions of law.
13. Income received from charitable funds permitted to be established or recognized by competent State agencies, operating for charitable, humanitarian, and educational promotion purposes not for profit.
A charity fund is a charity fund established and operating in accordance with the provisions of Decree 30/2012/ND-CP on the organization and operation of social funds and charity funds.
The basis for determining tax-exempt income received from charitable funds at this point is the document or decision to award the charitable fund's income and the vouchers for disbursing money and goods from the charitable fund.
14. Income received from foreign aid sources for charitable and humanitarian purposes in the form of Government and non-Government approved by competent State agencies.
The basis for determining tax-exempt income is the document of a competent State agency approving the receipt of aid.
15. Income from salaries and wages of Vietnamese crew members received from working for foreign shipping companies or Vietnamese shipping companies operating internationally.
16. Income of individuals who are ship owners, individuals who have the right to use ships and individuals who work on ships obtained from activities of providing goods and services directly serving offshore fishing activities.
