Decree 16 on amendments to the policies on militia and self-defense forces in Vietnam? Are the allowances for the deputy commander of the military command board subject to personal income tax in Vietnam under the Decree 16?
What is the Decree 16 on amendments to the policies on militia and self-defense forces in Vietnam?
On February 4, 2025, the Government of Vietnam issued Decree 16/2025/ND-CP amending and supplementing certain provisions of Decree 72/2020/ND-CP dated June 30, 2020, of the government detailing certain articles of the Law on Militia and Self-defense regarding the organization of the force and the policies pertaining to the militia and self-defense force.
Decree 16/2025/ND-CP takes effect from March 23, 2025.
See the full text of Decree 16 amending the policies on militia and self-defense force..Here
Allowances for the militia and military command at communes increased in Vietnam according to Decree 16?
On February 4, 2025, the Government of Vietnam issued Decree 16/2025/ND-CP (effective from March 23, 2025), amending Decree 72/2020/ND-CP on the organization of the force and the policies pertaining to the militia and self-defense force with the following main contents:
(1) Increase in allowances for militia and self-defense force command positions
According to clause 1, Article 1 of Decree 16/2025/ND-CP amending clause 1, Article 7 of Decree 72/2020/ND-CP, the allowances for militia and self-defense force command positions are regulated as follows:
- Under the new regulation, Commanders, Politicians of the Military Command Board at the commune level; Commanders, Politicians, Military Command Boards of agencies and organizations receive an increased allowance from 357,600 VND to 561,600 VND.
- Deputy Commanders, Deputy Politicians of the Military Command Board at the commune level; Deputy Commanders, Deputy Politicians of Military Command Boards of agencies and organizations; Battalion Commanders, Battalion Politicians; Naval Brigade Commanders, Naval Political Officers; Naval Squadron Commanders, Squadron Politicians of permanent militia; Company Commanders, Company Political Officers of mobile militia received an allowance increase from 327,800 VND to 514,800 VND.
- Deputy Battalion Commanders, Deputy Battalion Politicians; Deputy Naval Brigade Commanders, Deputy Naval Political Officers; Deputy Naval Squadron Commanders, Deputy Squadron Politicians of permanent militia; Deputy Company Commanders, Deputy Company Political Officers of mobile militia received an allowance increase from 312,900 VND to 491,400 VND.
- Company Commanders, Company Political Officers; Naval Squadron Commanders, Squadron Politicians; Mobile Militia Platoon Commanders, Permanent Militia Platoon Commanders received an allowance increase from 298,000 VND to 468,000 VND.
- Hamlet Team Leaders received an allowance increase from 178,800 VND to 280,800 VND. Additionally, when concurrently holding the position of Local Squad Leader or Platoon Leader, the Hamlet Team Leader receives an additional 100% of the corresponding position allowance.
- The allowance for Deputy Company Commanders, Deputy Company Political Officers; Deputy Naval Squadron Commanders, Squadron Deputy Political Officers is 351,000 VND (previous regulation 223,500 VND).
- The allowance for Platoon Leaders; Permanent Militia Squad Leaders is 280,800 VND (previous regulation 178,800 VND).
- The allowance for Squad Leaders, Boat Captains, Gun Battery Leaders is 234,000 VND (previous regulation 149,000 VND).
(2) Increase in monthly allowances for Hamlet Team Leaders, daily labor assistance for maritime militia
Clause 2, Article 1 of Decree 16/2025/ND-CP also amends and supplements clause 2, Article 8 of Decree 72/2020/ND-CP concerning the policies of allowances for Hamlet Team Leaders.
- For Hamlet Team Leaders, the monthly allowance is determined by the Provincial People's Committee to propose to the People's Council at the same level but not lower than 1,170,000 VND (previous regulation not lower than 745,000 VND).
- Additionally, Decree 16/2025/ND-CP amends and supplements points a, b of clause 1, Article 11 of Decree 72/2020/ND-CP on the level of assistance and meal allowances for local militia, mobile militia, air defense, artillery, reconnaissance, communication, engineering, chemistry, and medical militia. The daily labor assistance level is determined by the Provincial People's Committee to propose to the People's Council at the same level but not lower than 327,600 VND (previously not lower than 119,200 VND);
In cases where the duration of duty in the militia and self-defense force is extended by a decision of the competent authority, the additional allowance level shall not be lower than 50% of the current daily labor assistance (previous regulation not lower than 59,600 VND).
In cases where militia perform duties such as counter-terrorism, hostage rescue, crime suppression, dispersing protests, riots; preventing dangerous diseases in areas with high infection risk; collapsing, rescue, fire fighting, disaster remedy in dangerous areas to life as decided by the Commander of the local military authority from district level or higher, the additional daily labor assistance level shall not be lower than 50% of the current daily labor assistance.
- For maritime militia engaged in defending islands and seas, the daily labor assistance increases from 372,500 VND to 585,000 VND. The daily meal allowance per person also increases from 149,000 VND to 234,000 VND.
- For captains, chief engineers, ship drivers, and machinists, the responsibility allowance is calculated based on the actual days of operation at sea, each person, per day being 187,200 VND (previous regulation 119,200 VND).
In addition, Decree 16/2025/ND-CP also amends and supplements social insurance benefits for regular militia and health insurance benefits for regular militia as prescribed by the law on health insurance.
Decree 16 on amendments to the policies on militia and self-defense forces in Vietnam? (Image from Internet)
Are the allowances for the deputy commander of the military command board subject to personal income tax in Vietnam according to Decree 16?
According to point b, clause 2, Article 2 of Circular 111/2013/TT-BTC stipulates as follows:
Taxable Income
...
- Income from wages and salaries
Income from wages and salaries includes all forms of payments that employees receive from employers, including:
...
b) Allowances and subsidies, except for the following allowances and subsidies:
b.3) National defense, security allowances; allowances for armed forces.
...
Allowances, subsidies, and the extent of allowances, subsidies that are not included in taxable income as stipulated at point b, clause 2 of this Article must be regulated by competent State bodies.
If the guiding documents on allowances, subsidies, the extent of allowances, subsidies applied to the State sector, other economic entities, other business establishments shall be based on the list and extent of allowances, subsidies guided for the State sector to calculate and deduct.
If the allowance, subsidy received is higher than the allowance, subsidy under the guidance mentioned above, the excess must be included in taxable income.
...
Additionally, in Official Dispatch 5875/TCT-DNNCN in 2024 guided by the General Department of Taxation about personal income tax as follows:
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Based on the regulations and guidance mentioned above, in principle, national defense and security allowances; allowances for armed forces are not included in personal taxable income, provided they are regulated by competent State bodies. If the guiding documents on the allowances, subsidies, the extent of allowances, subsidies apply to the State sector, other economic entities, other business establishments base on the list and extent of allowances, subsidies guided for the State sector to calculate and deduct. If the allowance, subsidy received is higher than the allowance, subsidy according to the guidance mentioned above, the excess must be included in taxable income according to the guidance in clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013, of the Ministry of Finance.
...
Thus, according to the above regulations, the allowance for the Deputy Commander of the Military Command Board is not subject to personal income tax, as this is an allowance for the armed forces according to legal regulations.
In cases where the guiding documents on allowances, subsidies, the extent of allowances, subsidies apply to the State sector, other economic entities, other business establishments can be based on the list and extent of allowances, subsidies guided for the State sector to calculate and deduct.
However, if the allowance, subsidy received is higher than the allowance, subsidy prescribed, the excess must be included in taxable income.
