Title: Allowances and Benefits Not Subject to Personal Income Tax

Thu Ky Luat would like to address your query as follows:

According to Point b Clause 2 Article 2 of Circular 111/2013/TT-BTC, allowances and subsidies that are part of income from salaries and wages are subject to taxation, except for:

1. Monthly preferential allowances and one-time subsidies as stipulated by law for those with meritorious services;
2. Monthly and one-time allowances for individuals who participated in resistance wars, national defense, performed international duties, and youth volunteers who have completed their tasks;
3. National defense and security allowances; allowances for armed forces;
4. Hazardous and dangerous allowances for sectors, professions, or jobs in hazardous and dangerous environments;
5. Attraction and regional allowances;
6. Sudden difficulty allowances, accident and occupational disease allowances, one-time childbirth or adoption allowances, maternity policies, convalescence and health rehabilitation post-maternity, allowances for reduced working capacity, unemployment allowances, and other allowances as stipulated by the Labor Code and the Social Insurance Law;
7. Allowances for individuals receiving social protection as prescribed by law;
8. Service allowances for high-ranking leaders;
9. One-time allowances for individuals transferring to work in areas with exceptionally difficult socio-economic conditions, one-time support for officials involved in maritime sovereignty as stipulated by law. One-time relocation allowances for foreigners coming to reside in Vietnam, Vietnamese working abroad, and long-term overseas Vietnamese returning to work in Vietnam;
10. Allowances for village and communal healthcare workers;
11. Special occupational allowances.

Economic entities and business establishments should base their calculations on the list and levels of allowances and subsidies defined in guiding documents applicable to the State sector for deductions. For one-time relocation allowances for foreigners coming to reside in Vietnam, Vietnamese working abroad can be deducted at the level specified in the labor contract or collective labor agreement.

If the received allowances and subsidies exceed the regulated levels, the excess amount must be included in taxable income.

Thus, according to current legal provisions, there are a total of 11 non-taxable allowances and subsidies if they do not exceed the stipulated levels.

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