What are cases eligible for 100% health insurance coverage in Vietnam from July 1, 2025? Do foreigners receive a personal income tax reduction when paying health insurance?

What are cases eligible for 100% health insurance coverage in Vietnam from July 1, 2025?

Pursuant to Clause 17, Article 2 of the Law on Health Insurance Amendment 2024 (effective from July 1, 2025) which regulates the revised benefit levels of health insurance, the cases eligible for 100% health insurance coverage are as follows:

(1) Participants of health insurance who receive medical examination and treatment as stipulated in Articles 26 and 27 of the Law on Health Insurance 2008 are entitled to 100% of health insurance coverage for medical examination and treatment costs if they fall into the following categories:

- Included in the subjects listed in Points a, b, c, d, đ, e, h, i, o, r, and s of Clause 3, Article 12 of the Law on Health Insurance 2008.

- The cost for one medical examination or treatment is lower than the limit stipulated by the Government of Vietnam;

- Medical examination and treatment at the initial medical facility including: health stations; family medical facilities; military-civilian medical health stations, military-civilian clinics; district-level health centers licensed to operate as clinics; health facilities under the control of ministries, sectors, organizations designated by the Minister of Health; military and police health facilities designated by the Minister of Defense and the Minister of Public Security.

- Outpatient examination and treatment at regional general clinics;

- The patient has continuously participated in health insurance for 5 years or more and has co-paid the medical examination and treatment fees in a year according to Clause 3, Points a, b, c, đ, and e of Clause 4, Clause 5, Article 22, Articles 26 and 27 of the Law on Health Insurance 2008 which exceeds six times the reference level;

(2) Individuals registered for initial medical examination and treatment at high-level or basic-level medical facilities, who later seek examination and treatment not at their registered initial health insurance medical facility due to a change in temporary or permanent residence, are entitled to 100% health insurance coverage at a basic-level medical facility at their new residential location if they meet the conditions for 100% insurance stipulated in Clause 1, Article 22 of the Law on Health Insurance 2008.

(3) Health insurance participants who independently opt for medical examination and treatment outside their registered initial medical facility without conformity for patient transfer as stated in Articles 26 and 27 of the Law on Health Insurance 2008, except those listed in Clauses 3 and 5, Article 22 of the Law on Health Insurance 2008, are eligible for 100% health insurance in the following cases:

- Examination and treatment at basic-level or specialist-level medical facilities for diagnosed conditions requiring treatment for rare diseases, serious illnesses, surgeries or high-tech procedures regulated by the Minister of Health;

- Ethnic minorities and individuals from poor households living in socio-economically difficult or particularly difficult regions, those living on island communes or districts, receiving inpatient treatment at specialist-level facilities;

- Examination and treatment at initial-level facilities;

- Inpatient treatment at basic-level facilities;

- Examination and treatment at basic- or specialist-level hospitals which were designated as district-level before January 1, 2025;

- Inpatient treatment at specialist-level facilities designated as provincial-level before January 1, 2025.

(4) Participants of health insurance are entitled to 100% coverage as stipulated in Clause 1, Article 22 of the Law on Health Insurance 2008 for emergency treatment at any medical facility.

What are cases eligible for 100% health insurance coverage in Vietnam from July 1, 2025? Do foreigners receive a personal income tax reduction when paying health insurance? (Image from the Internet)

Do foreigners receive a personal income tax reduction when contributing to health insurance in Vietnam?

Based on Point c, Clause 2, Article 9 of Circular 111/2013/TT-BTC (regarding personal income tax, repealed by Clause 6, Article 25 of Circular 92/2015/TT-BTC), the tax deductions are regulated as follows:

Tax Deductions

...

2. Deductions for social, voluntary pension insurances

...

c) Foreigners residing in Vietnam, or Vietnamese residing and working abroad with income from business, salary, or wages from abroad who have paid mandatory insurance in accordance with the laws of the residing or working nation similar to Vietnamese laws on social insurance, health insurance, unemployment insurance, professional liability insurance, and other mandatory insurance (if any), may deduct these insurance premiums from taxable income from business, salaries, or wages when calculating personal income tax.

Foreign individuals and Vietnamese individuals contributing to the aforementioned insurance abroad will have a temporary deduction from their income for tax calculation purposes during the year (if documentation is available) and a final calculation upon tax settlement as per regulations. If no documentation is available for temporary deduction during the year, a one-time deduction will be allowed during tax finalization.

...

Thus, foreigners will be entitled to a Personal Income Tax reduction when paying for health insurance if they meet the following conditions:

- Are individuals residing in Vietnam but working abroad.

- Have income from business, salary, or wages from abroad.

- Have participated in mandatory health insurance in the country where they reside or work, equivalent to Vietnamese health insurance regulations.

Additionally, if documentation is available, foreign individuals participating in health insurance abroad may immediately have a temporary deduction from their income for tax calculation throughout the year and the official amount calculated upon tax finalization as per regulations. If no documentation is available for temporary deduction during the year, a one-time deduction will be allowed during tax finalization.

Where can taxpayers pay personal income tax in Vietnam?

According to Clause 1, Article 56 of the Law on Tax Administration 2019, personal income tax payments may be made at:

- State Treasury;

- Tax management agency where the tax return is submitted;

- Through organizations authorized by the tax management agency for tax collection;

- Via commercial banks, other credit institutions, and service organizations as per legal regulations.