Which allowances are exempt from personal income tax in Vietnam in 2025? What are regulations on service allowances for high-level leaders of Vietnam?

Which allowances are exempt from personal income tax in Vietnam in 2025?

Based on the regulations at Point b Clause 2 Article 2 of Circular 111/2013/TT-BTC (amended by Clause 1 Article 11 of Circular 92/2015/TT-BTC), the allowances that are not included in taxable personal income for 2025 are as follows:

- Monthly preferential allowances and lump-sum allowances as prescribed by law for those with meritorious services.

- Monthly allowances, lump-sum allowances for individuals participating in resistance, national defense, performing international duties, and youth volunteers who have completed their tasks.

- National defense, security allowances; allowances for armed forces.

- Toxic and hazardous allowances for industries, occupations, or jobs at workplaces with toxic and hazardous elements.

- Attraction allowances, regional allowances.

- Unexpected hardship allowances, occupational accident and disease allowances, lump-sum allowances for childbirth or adoption, maternity policies, convalescence and recovery health benefits after maternity, allowances for labor capacity reduction, lump-sum retirement allowances, monthly survivor benefits, severance allowances, job loss allowances, unemployment benefits, and other allowances as regulated by the Labor Code 2019 and the Social Insurance Law 2014.

- Allowances for individuals receiving social protection as prescribed by law.

- Service allowances for high-level leaders.

- Lump-sum allowances for individuals relocating to particularly difficult socio-economic areas, lump-sum support for officials working on maritime sovereignty as prescribed by law.

- Lump-sum regional transfer allowances for foreigners residing in Vietnam, Vietnamese individuals working abroad, and Vietnamese citizens residing abroad long-term returning to work in Vietnam.

- Allowances for village or commune medical staff.

- Industry-specific special allowances.

Note: Allowances and levels of allowances not included in taxable income for personal income tax must be regulated by competent state agencies.

In cases where guidance documents on allowances applicable to the State sector are available, other economic sectors or businesses may refer to the list and levels of allowances that apply to the State sector for deduction purposes.

In cases where the received allowance exceeds the guided amount, the excess must be included in taxable income.

For lump-sum regional transfer allowances for foreigners residing in Vietnam, and Vietnamese going to work abroad, deductions are allowed up to the amount stated in the Labor contract or collective labor agreement.

Which allowances are exempt from personal income tax in Vietnam in 2025? (Image from the Internet)

What are regulations on service allowances for high-level leaders of Vietnam?

According to Article 2 of Decision 269/2005/QD-TTg, the service allowances are regulated as follows:

Regulations on Service Allowance Levels:

1. A monthly allowance of 400,000 VND applies to the subjects mentioned in Clauses 1 and 2 of Article 1 of this Decision and Senior Experts Grade 3.

2. A monthly allowance of 200,000 VND applies to the subjects mentioned in Clauses 3, 4, and 5 of Article 1 of this Decision and Senior Experts Grades 1 and 2.

In cases of holding multiple positions, only the highest allowance level for the highest position is applied.

Based on the above regulations, service allowances for high-level leaders are specified as follows:

- A monthly allowance of 400,000 VND applies to the following subjects:

+ Members of the National Assembly Standing Committee, Chairman of the National Assembly's Ethnic Council;

+ Chairpersons of the committees of the National Assembly;

+ Chairperson of the Office of the National Assembly;

+ Chairperson of the Office of the President;

+ Heads of Central Party Committees;

+ Chief of the Central Office;

+ Director of the Ho Chi Minh National Academy of Politics;

+ Editor-in-chief of the Nhan dan Newspaper;

+ Editor-in-chief of the Communist Review and positions with salaries equivalent to the Head of Central Party Committees.

+ Ministers, heads of ministerial-level agencies;

+ Vice President and General Secretary of the Vietnam Fatherland Front Central Committee;

+ President of the Vietnam General Confederation of Labor;

+ President of the Vietnam Women's Union;

+ President of the Vietnam Farmers' Union;

+ President of the Vietnam Veterans' Association;

+ First Secretary of the Ho Chi Minh Communist Youth Union Central Committee and positions with salaries equivalent to ministers.

+ Secretary of the Provincial, City Party Committee under Central authority, first-tier municipalities;

+ Standing Deputy Secretary of the City Party Committee of Hanoi and Ho Chi Minh City;

+ Chairperson of the People's Council, Chairperson of the People's Committee of Hanoi and Ho Chi Minh City.

+ Senior General;

+ Naval Admiral;

+ Commander of military regions and equivalent positions in the People's Army.

+ Senior General in the People's Public Security Force.

+ President of the Vietnam Academy of Science and Technology; President of the Vietnam Academy of Social Sciences.

+ Senior Experts Grade 3

- A monthly allowance of 200,000 VND applies to the following subjects:

+ Deputy Chairman of the Central Inspection Commission;

+ Deputy Head of Central Party Committees;

+ Deputy Chief of the Central Office;

+ Secretary of Overseas Party Committees;

+ Secretary of the Party Committee of Central Agencies;

+ Vice President of the Vietnam Fatherland Front;

+ Deputy Director of the Ho Chi Minh National Academy of Politics;

+ Deputy Editor-in-chief of the Nhan dan Newspaper;

+ Deputy Editor-in-chief of the Communist Review;

+ Director of the National Political Publishing House.

+ Vice Chairman of the National Assembly's Ethnic Council;

+ Vice Chairpersons of the National Assembly committees;

+ Head of the Committee of the National Assembly Standing Committee;

+ Deputy Chairperson of the Office of the National Assembly;

+ Vice Chairperson of the Office of the President;

+ Deputy Chief Justice of the Supreme People's Court;

+ Deputy Procurator General of the Supreme People's Procuracy;

+ Deputy Minister; Deputy Prime Minister of ministerial-level agencies, heads of agencies under the Government of Vietnam.

+ Lieutenant General;

+ Rear Admiral;

+ Major General;

+ Commodore;

+ Army Corps Commander and equivalent positions in the People's Army.

+ Lieutenant General; Major General and Department Director in the People's Public Security Force.

+ Members of the Central Inspection Commission;

+ Vice Presidents of central socio-political organizations (Vietnam General Confederation of Labor, Vietnam Women's Union, Vietnam Farmers' Union, Vietnam Veterans' Association);

+ Deputy Secretary of the Provincial, City Party Committee under Central authority, first-tier municipalities;

+ Chairperson of the People's Council, Chairperson of the People's Committee of provinces, centrally-run cities, and first-tier municipalities.

+ Members of the Presidium, Permanent Members of the Vietnam Fatherland Front Central Committee;

+ Standing Secretary of the Ho Chi Minh Communist Youth Union Central Committee.

+ Senior Experts Grades 1 and 2.

What are regulations on allowance payment for high-level leaders of Vietnam?

According to Article 4 of Decision 269/2005/QD-TTG, service allowances are paid on a monthly basis.

The funding for paying service allowances is allocated from the annual budget estimates of the agencies and units responsible for paying salaries to officials as stipulated in Article 1 of Decision 269/2005/QD-TTG.