What is the list of 42 severe diseases eligible for personal income tax reduction in Vietnam?

How to determine personal income tax reduction for taxpayers suffering from severe diseases in Vietnam?

Based on Article 5 of the 2007 Law on Personal Income Tax, it is stipulated as follows:

Taxpayers facing difficulties due to natural disasters, fires, accidents, severe diseases affecting their tax-paying capacity shall be considered for a tax reduction corresponding to the level of damage but not exceeding the amount of tax payable.

Simultaneously, Clause 1, Article 5 of Decree 65/2013/ND-CP stipulates:

Tax Reduction

1. Taxpayers who face difficulties due to natural disasters, fires, accidents, or severe diseases affecting their tax-paying capacity shall be considered for a tax reduction corresponding to the level of damage but not exceeding the amount of tax payable.

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Thus, taxpayers facing difficulties due to severe diseases affecting their tax-paying capacity will be considered for a tax reduction corresponding to the level of damage but not exceeding the amount of tax payable.

What is the list of 42 severe diseases eligible for personal income tax reduction?

According to Official Dispatch 6383/BTC-TCT of 2015, there is a list of 42 severe diseases as a basis for considering personal income tax reduction for taxpayers suffering from severe diseases under the provisions of Article 5 of Decree 65/2013/ND-CP as follows:

What is the list of 42 severe diseases eligible for personal income tax reduction in Vietnam? (Image from the Internet)

What does the tax reduction applications for individuals suffering from severe diseases for personal income tax reduction include?

Based on the provisions at Point b, Clause 1, and Clause 2 of Article 52 of Circular 80/2021/TT-BTC on application procedures and cases where the tax authorities notify, decide on tax exemption, tax reduction:

application procedures and cases where the tax authorities notify, decide on tax exemption, tax reduction

1. Tax authorities notify, decide on tax exemption, tax reduction for the following cases:

a) Personal income tax exemption for income items specified in Clauses 1 to 6 of Article 4 of the Law on Personal Income Tax;

b) Tax reduction under regulations for individuals, business households, business individuals facing difficulties due to natural disasters, fires, accidents, severe diseases affecting their tax-paying capacity;

c) Special consumption tax reduction for taxpayers producing goods subject to special consumption tax facing difficulties due to natural disasters, unexpected accidents as per special consumption tax law;

d) Resource tax exemption, reduction for resource taxpayers affected by natural disasters, fires, unexpected accidents causing damage to declared, paid resources;

e) Exemption, reduction of tax on non-agricultural land use;

g) Exemption, reduction of agricultural land use tax as stipulated by the Agricultural Land Use Tax Law and National Assembly resolutions;

h) Exemption, reduction of land rent, water surface rent, land levy;

i) Exemption from registration fees.

2. Procedures and applications for tax exemption, tax reduction in the cases where tax authorities notify, decide on exemptions at Clause 1 of this Article are implemented in accordance with Articles 53 to 61 of this Circular.

Referencing Clause 3, Article 54 of Circular 80/2021/TT-BTC:

Procedures for tax reduction applications stipulated at Point b, Clause 1, Article 52 of this Circular

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3. applications for taxpayers suffering from severe diseases

a) A written request according to Form No. 01/MGTH issued together with Appendix I of this Circular;

b) A copy of the medical records or summary of medical records or medical appointment book as per medical examination and treatment laws;

c) Proof of medical examination and treatment costs issued by medical establishments; or invoices for medication purchased accompanied by a doctor’s prescription;

d) Personal income tax finalization declaration according to Form No. 02/QTT-TNCN issued together with Appendix II of this Circular (if the taxpayer requests a reduction of personal income tax for income from salaries, wages).

Thus, tax reduction applications for individuals suffering from severe diseases for personal income tax reduction include:

- A written request according to Form No. 01/MGTH issued together with Appendix I of Circular 80/2021/TT-BTC;

- A copy of the medical records or summary of medical records or medical appointment book as per medical examination and treatment laws;

- Proof of medical examination and treatment costs issued by medical establishments; or invoices for medication purchased accompanied by a doctor’s prescription;

- Personal income tax finalization declaration according to Form No. 02/QTT-TNCN issued together with Appendix II of Circular 80/2021/TT-BTC (if the taxpayer requests a reduction of personal income tax for income from salaries, wages).