The Government has just issued Decree 253/2026/ND-CP to specifically and detailedly guide the 2025 Personal Income Tax Law. In which, a series of new points on personal income tax officially take effect from July 1, attracting the attention of taxpayers.
Notably, Clause 3, Article 8 of Decree No. 253 stipulates the allowances, subsidies, and other incomes that are not subject to personal income tax as follows:
a) Monthly allowances, preferential allowances and one-time allowances according to the provisions of law on preferential treatment for people with meritorious services;
b) Monthly allowance, one-time allowance for subjects participating in the resistance war, protecting the Fatherland, performing international duties, and youth volunteers who have completed their duties;
c) Defense and security allowances and subsidies; allowances and subsidies for the armed forces;
d) Harmful and dangerous allowances, in-kind allowances for industries, professions or jobs in workplaces with hazardous and dangerous elements;
d) Allowance for attraction, regional allowance;
e) Allowances, subsidies, and living expenses paid by Vietnamese agencies abroad to members of Vietnamese agencies abroad, spouses/married spouses and children accompanying members of Vietnamese agencies abroad according to the provisions of the Law on Representative Agencies of the Socialist Republic of Vietnam abroad, Decree No. 08/2019/ND-CP stipulating a number of regimes for members of Vietnamese agencies abroad and amended, supplemented or replaced documents;
g) Allowances for occupational accidents, occupational diseases, one-time allowances when giving birth or adopting children, allowances due to reduced working capacity, one-time retirement allowances, monthly death benefits and other allowances as prescribed by law on social insurance;
h) Emergency difficulty allowance, unemployment allowance, severance allowance, unemployment allowance according to the provisions of law.
In case organizations and enterprises have specific regulations in financial regulations or internal regulations or labor contracts or labor agreements on the level of severance allowance, unemployment allowance higher than the level prescribed by law, the actual payment exceeding this level will also not be included in the taxable income of employees;
i) Allowances for social protection beneficiaries according to the provisions of law on social protection;
k) Service allowance for senior leaders.
l) One-time allowance for individuals when transferring to areas with particularly difficult socio-economic conditions, one-time support for officials and civil servants working on sea and island sovereignty according to the provisions of law. One-time regional transfer allowance for foreigners coming to reside in Vietnam, Vietnamese people going to work abroad, Vietnamese people long-term residents abroad returning to Vietnam to work.
Specifically, one-time relocation allowance for foreigners coming to reside in Vietnam, Vietnamese people going to work abroad, Vietnamese people long-term residing abroad returning to Vietnam to work according to the level stated in the decision or document on transfer, rotation, financial regulations or internal regulations or labor contracts or labor agreements;
m) Allowances for village and hamlet health workers;
n) Special allowances for industries and professions.
Subsidies and allowances not included in taxable income specified in this clause must be stipulated by competent state agencies in accordance with the law on preferential treatment for people with meritorious services, national defense, security, diplomacy, labor, social insurance, health, education - training and other relevant laws.
In case the allowance or subsidie received is higher than the prescribed allowance or subsidie level, the excess must be included in the personal income taxable income of the individual, except for the provisions at point h of this clause.
