What is the study encouragement scholarship for higher education students in Vietnam?

What is the study encouragement scholarship for higher education students in Vietnam?

Pursuant to Article 8 of Decree 84/2020/ND-CP:

Study Encouragement Scholarship

1. Subjects eligible for the study encouragement scholarship:

a) Students in specialized upper secondary schools under higher education institutions, specialized school students with good conduct, excellent academic performance in the scholarship consideration term, having specialty subject scores of 8.5 or higher for the semester under consideration or winning a prize at national, regional, or international excellent student contests of that year;

b) Students from arts, physical education, sport schools with good conduct, having average academic performance in the scholarship consideration term, and winning a medal in national, regional, or international competitions of that academic year;

c) Students studying in vocational education institutions, higher education institutions with good academic and conduct performance, not subject to any disciplinary action from reprimand level upward in the scholarship consideration term.

2. Scholarship amount for subjects defined in points a and b of clause 1 of this Article:

a) For specialized schools, arts, physical education, sport schools: The scholarship amount for a student per month is at least three times the tuition fee rate of the specialized upper secondary schools in the locality;

b) For specialized upper secondary school students within higher education institutions: The scholarship amount for a student is determined by the higher education principal but not lower than the current maximum tuition fee that the student has to pay at the school;

c) For schools that do not collect tuition fees: The scholarship amount is at least three times the maximum tuition fee of Upper secondary schools in the locality.

3. Scholarship amount for subjects defined in point c of clause 1 of this Article:

a) Good scholarship: The scholarship amount is equal to or higher than the current maximum tuition fee of the field, major, or occupation that the student has to pay at the school, as determined by the principal or director (hereinafter referred to as the principal) for students with an average academic score and conduct grade of good or higher. For private schools, the minimum scholarship amount is determined by the principal.

For tuition-free training fields, the scholarship amount is applied according to the unit price ordered, assigned tasks, or bid by the State for the training group of the school;

b) Excellent scholarship: The scholarship amount is higher than the good scholarship as determined by the principal for students with an average academic score of excellent or higher and a conduct grade of very good or higher;

c) Outstanding scholarship: The scholarship amount is higher than the excellent scholarship as determined by the principal for students with an average academic score and conduct grade of outstanding;

d) The average academic score and conduct grade defined in points a, b, and c of this clause are determined according to current regulations of the Ministry of Education and Training, the Ministry of Labor, Invalids and Social Affairs; in which the average academic score for scholarship consideration under this decree is calculated from the first-time exam and subject evaluation results.

...

Thus, the study encouragement scholarship amount for higher education students is as follows:

- Good: equal to or higher than the current maximum tuition fee of the field, major, or occupation that the student has to pay at the school, as determined by the principal or director.

For private schools: the minimum scholarship amount is determined by the principal.

For tuition-free training fields, the scholarship amount is applied according to the unit price ordered, assigned tasks, or bid by the State for the training group of the school;

- Excellent: The scholarship amount is higher than the good scholarship as determined by the principal for students with an average academic score of excellent or higher and a conduct grade of very good or higher;

- Outstanding: The scholarship amount is higher than the excellent scholarship as determined by the principal for students with an average academic score and conduct grade of outstanding.

What is the study encouragement scholarship for higher education students in Vietnam?​ (Image from the Internet)

Do higher education students in Vietnam have to pay personal income tax on study encouragement scholarships?

Pursuant to clause 11, Article 4 of the Personal Income Tax Law 2007, the tax-exempt income is as follows:

Tax-Exempt Income

...

11. Income from scholarships, including:

a) Scholarships received from the state budget;

b) Scholarships received from domestic and foreign organizations according to the educational support programs of such organizations.

...

And according to point m, clause 1, Article 3 of Circular 111/2013/TT-BTC, the tax-exempt income is as follows:

Tax-Exempt Income

1. Pursuant to the provisions of Article 4 of the Personal Income Tax Law, Article 4 of Decree No. 65/2013/ND-CP, tax-exempt income includes:

...

m) Income from scholarships, including:

m.1) Scholarships received from the state budget, including: scholarships from the Ministry of Education and Training, Departments of Education and Training, public schools, or other types of scholarships financed by the state budget.

m.2) Scholarships received from domestic and foreign organizations (including living expenses) according to the educational support programs of such organizations.

The organizations awarding scholarships for individuals mentioned at this point must retain the scholarship award decisions and scholarship payment documents. In cases where individuals receive scholarships directly from foreign organizations, the individuals must keep documents and proofs showing that the income received is a scholarship from foreign organizations.

...

And clause 4, Article 8 of Decree 84/2020/ND-CP stipulates the source of study encouragement scholarships as follows:

Study Encouragement Scholarships

...

4. Scholarship sources:

a) For specialized schools, arts, physical education, sport schools: Study encouragement scholarships are allocated within the local budget expenditure estimates to cover at least 30% of the total number of specialized students. For specialized Upper secondary school students within higher education institutions, the study encouragement scholarship is arranged from the lawful revenue of the higher education institution and the lawful revenue of the specialized Upper secondary school;

b) For vocational education institutions, higher education institutions: The study encouragement scholarship is allocated at least 8% of tuition fee revenue for public schools and at least 2% of tuition fee revenue for private schools.

...

According to the provisions, income from receiving scholarships from the state budget, including scholarships from public schools, is tax-exempt income.

Thus, income from receiving study encouragement scholarships for higher education students from public schools is tax-exempt income.

Therefore, students receiving study encouragement scholarships from public universities will not have to pay personal income tax.

What are procedures for considering and awarding study encouragement scholarships to higher education students in Vietnam?

Pursuant to clause 6, Article 8 of Decree 84/2020/ND-CP, the procedures for considering and awarding scholarships to higher education students are as follows:

Step 1:

The principal, based on the study encouragement scholarship source, determines the number of scholarship slots for each course, field of study. In cases where the number of students eligible for scholarship consideration exceeds the number of scholarship slots, the consideration and award of scholarships are decided by the principal;

Step 2:

The principal, based on the academic and conduct performance of the students, awards scholarships in order from outstanding down to the total number of determined scholarship slots;

Scholarships are awarded on a semester basis and for 10 months in an academic year. For students in modular or credit-based training, scholarships are awarded based on the number of modules or credits, where 15 modules or credits are equivalent to one semester.

Students eligible for policy scholarships, social assistance, and preferential policies still receive study encouragement scholarships as per the provisions in Decree 84/2020/ND-CP.