Vietnam: Allowances for militia and self-defense forces and military commanders at communes increased from March 23, 2025? Are allowances for military commanders at communes subject to personal income tax in Vietnam?
Vietnam: Allowances for militia and self-defense forces and military commanders at communes increased from March 23, 2025?
On February 4, 2025, the Government of Vietnam issued Decree 16/2025/ND-CP (document effective from March 23, 2025) amending Decree 72/2020/ND-CP regarding the organization, development, and policies for the Militia and Self-Defense Forces with the following key contents:
(1) Increase in position allowances for Militia and Self-Defense Force commanders
According to Clause 1, Article 1 of Decree 16/2025/ND-CP amending Clause 1, Article 7 of Decree 72/2020/ND-CP, regulations on position allowances for Militia and Self-Defense Force commanders are as follows:
- According to the new regulations, the Chief Commander and Political Commissar of the Commune Military Command; Chief Commander and Political Commissar of agency and organizational military commands will have their allowances increased from 357,600 VND to 561,600 VND.
- Deputy Chief Commander and Deputy Political Commissar of the Commune Military Command; Deputy Chief Commander and Deputy Political Commissar of agency and organizational military commands; Battalion Commander and Political Commissar of battalion; Brigade Commander and Political Commissar of brigade; Squadron Leader and Political Commissar of regular militia squadron; Company Commander and Political Commissar of mobile militia and self-defense companies will have their allowances increased from 327,800 VND to 514,800 VND.
- Deputy Battalion Commander and Deputy Political Commissar of battalion; Deputy Brigade Commander and Deputy Political Commissar of brigade; Deputy Squadron Leader and Deputy Political Commissar of regular militia squadron; Deputy Company Commander and Deputy Political Commissar of mobile militia and self-defense companies will have their allowances increased from 312,900 VND to 491,400 VND.
- Company Commander and Political Commissar of company; Squadron Leader and Political Commissar of squadron; Mobile militia platoon leader and regular militia platoon leader will have their allowances increased from 298,000 VND to 468,000 VND.
- Hamlet militia leaders will have their allowances increased from 178,800 VND to 280,800 VND. Additionally, when taking on additional roles as a squad leader or platoon leader of local militia, a Hamlet militia leader will enjoy an additional 100% of the corresponding position allowance.
- The allowance for Deputy Company Commander and Deputy Political Commissar of company; Deputy Squadron Leader and Deputy Political Commissar of squadron is 351,000 VND (previously 223,500 VND).
- The allowance for Platoon Leader; Regular militia squad leader is 280,800 VND (previously 178,800 VND).
- The allowance for Squad Leader, Boat Captain, and Gun Crew Leader is 234,000 VND (previously 149,000 VND).
(2) Increase in monthly allowances for Hamlet militia leaders and daily work allowances for marine 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 regarding allowance policies for Hamlet militia leaders.
- For Hamlet militia leaders, the monthly allowance level is proposed by the provincial People's Committee and decided by the People's Council at the same level but not less than 1,170,000 VND (previously not less than 745,000 VND).
- Additionally, Decree 16/2025/ND-CP amends and supplements points a and b of Section 1, Clause 1, Article 11 of Decree 72/2020/ND-CP, regulating the allowance and meal allowances for local militia, mobile militia, air defense militia, artillery, reconnaissance, communications, engineering, chemical defense, and medical units. The daily work allowance is proposed by the provincial People's Committee, decided by the People's Council at the same level, but not less than 327,600 VND (previously not less than 119,200 VND);
In cases where the extension period for participating in the militia and self-defense forces is approved by the competent authority, an additional allowance will not be less than 50% of the current daily work allowance (previously not less than 59,600 VND).
In cases where the militia performs tasks such as counterterrorism, hostage rescue, crime suppression, dispersing demonstrations, riots; preventing and fighting dangerous diseases in high-risk areas; collapse rescue, firefighting, disaster recovery in life-threatening areas according to decisions of the local military command authorities at the district level or higher, the additional daily work allowance will not be less than 50% of the current daily work allowance.
- For marine militia on missions to protect islands and sea areas, the daily work allowance will increase from 372,500 VND to 585,000 VND. The daily meal allowance per person will also increase from 149,000 VND to 234,000 VND.
- For ship captains, chief engineers, boat drivers, and mechanics, the responsibility allowance is calculated based on the actual days of operation at sea, each person, each day at 187,200 VND (previously 119,200 VND).
Furthermore, Decree 16/2025/ND-CP also amends and supplements social insurance benefits for regular militia and health insurance benefits for regular militia in accordance with laws on health insurance...
Vietnam: Allowances for militia and self-defense forces and military commanders at communes increased from March 23, 2025? (Image from the Internet)
Are allowances for military commanders at communes subject to personal income tax in Vietnam?
Based on point b, clause 2, Article 2 of Circular 111/2013/TT-BTC, the following is stipulated:
Taxable income
...
- Income from wages and salaries
Income from wages and salaries is income received by an employee from the employer, including:
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b) Allowances, subsidies, excluding the following allowances and subsidies:
b.3) Defense and security allowances; subsidies for armed forces.
...
Allowances, subsidies, and the levels of allowances and subsidies not included in taxable income as guided in point b, clause 2, of this Article must be regulated by competent State authorities.
In the case of guidances on allowances, subsidies, and allowance levels applicable to the State sector, other economic sectors and business entities are to base their calculations on the listed allowances and subsidies for the State sector.
If the allowance or subsidy received exceeds the stipulated level, the excess must be calculated as taxable income.
...
In conjunction with Official Dispatch 5875/TCT-DNNCN in 2024 issued by the General Department of Taxation guiding personal income tax as follows:
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According to the aforementioned regulations and guidance, **in principle, the defense and security allowances and subsidies for armed forces are not included in taxable personal income and must be specified by competent State authorities. If the guidances on allowances, subsidies, and allowance levels apply to the State sector, other economic sectors and business entities shall adhere to the list and allowance levels guided for the State sector. If the allowance or subsidy received exceeds the allowance level provided by guidance, the excess part must be considered taxable income as per clause 2, Article 2 of Circular No. 111/2013/TT-BTC dated August 15, 2013, by the Ministry of Finance.
...
Thus, according to the above regulations, the allowance for the military commanders at communes is not subject to personal income tax, as it is a subsidy for armed forces as per the law.
If the actual allowances received exceed the stipulated level, the excess will be included in taxable personal income.
How to determine the personal income tax period for non-residents in Vietnam?
According to Clause 2, Article 7 of the Personal Income Tax Law 2007 amended by Clause 3, Article 1 of the Personal Income Tax Amendment Law 2012, the regulations are as follows:
Tax period
1. Tax period for residents is stipulated as follows:
a) The yearly tax period applies to income from business; income from wages and salaries;
b) The tax period for each income occurrence applies to income from capital investment; transfer of capital, excluding income from securities transfer; income from real estate transfer; winnings; royalties; franchising; inheritances; gifts;
c) The tax period for each transfer or yearly applies to income from securities transfer.
2. The tax period for non-residents is calculated for each occurrence of income for all taxable incomes.
The personal income tax period for non-residents in Vietnam is determined by each occurrence of income for all taxable incomes.
