21 types of income will be exempt from personal income tax starting in 2026.

The Personal Income Tax Law 2025 will take effect from July 1, 2026. However, income from business activities, salaries, and wages of resident individuals will be subject to the 2026 tax year, with many items being tax-exempt.

The Personal Income Tax Law of 2025 stipulates that many types of income will be exempt from tax starting in 2026, which taxpayers need to be aware of. Specifically:

1. Income from the transfer, inheritance, or gift of real estate between spouses; biological parents and their children; adoptive parents and their adopted children; father-in-law and mother-in-law and daughter-in-law; father-in-law and mother-in-law and son-in-law; paternal grandparents and grandchildren; maternal grandparents and grandchildren; and siblings.

2. Income from the transfer of housing, land use rights, and assets attached to residential land by individuals in cases where the individual owns only one house and one plot of land in Vietnam.

3. Income derived from the value of land use rights granted to individuals by the State.

4. Income of households and individuals directly producing crops, planted forests, livestock, aquaculture, and fishery products that have not been processed into other products or have only undergone basic processing; salt production; income from dividends of members of agricultural cooperatives and cooperative unions; and individual farmers who have signed contracts with enterprises participating in "Large-Scale Farming," production forestry, and aquaculture.

5. Income from the conversion of agricultural land allocated by the State to households and individuals for production.

6. Income from interest on government bonds, interest on local government bonds, interest on deposits at credit institutions, and interest from life insurance contracts.

7. Income from remittances.

8. Night shift pay, overtime pay, and wages/salaries paid for days not taken as leave as prescribed by law.

9. Pension payments are made by the Social Insurance Fund; income is also paid by supplementary pension insurance funds and voluntary pension funds.

10. Income from scholarships, including:

- Scholarships are received from the state budget.

- Scholarships received from domestic and international organizations through their scholarship support programs.

11. Income from compensation under life and non-life insurance contracts, compensation for work-related accidents, state compensation, and other compensation.

12. Income received from charitable organizations and funds established or recognized by competent state authorities, operating for charitable and humanitarian purposes, and not for profit.

13. Income received from foreign aid for charitable and humanitarian purposes, in the form of government and non-governmental organizations, subject to approval by competent state agencies.

14. Income from salaries and wages of Vietnamese seafarers working for foreign shipping companies or Vietnamese shipping companies engaged in international transport.

15. Income of individuals who are ship owners, individuals who have the right to use ships, and individuals working on ships from activities providing goods and services directly serving offshore fishing and aquaculture operations.

16. Income from the first transfer of greenhouse gas emission reduction results of individuals whose greenhouse gas emission reduction results are recognized, carbon credits of individuals who have been granted carbon credits; income from interest on green bonds and from the first transfer of green bonds after issuance.

17. Income from salaries and wages earned from performing scientific , technological, and innovative tasks.

18. Income from royalties on scientific, technological, and innovative projects when the project results are commercialized.

19. Income of individual investors and experts from innovative startup projects, founders of innovative startup businesses, and individual investors contributing capital to venture capital funds.

20. Income from salaries and wages of foreign experts working in programs and projects funded by non-refundable ODA capital, foreign non-governmental programs and projects in Vietnam; Vietnamese individuals working at representative offices of international organizations belonging to the United Nations System in Vietnam; individuals participating in United Nations peacekeeping forces.

21. Income after corporate income tax payment of an individual who is the owner of a private enterprise, or an individual who is the owner of a single-member limited liability company.

In addition, the Personal Income Tax Law 2025 stipulates that the following allowances are not subject to personal income tax:

- Allowances and subsidies as prescribed by law regarding preferential treatment for meritorious individuals.

- Defense and security allowance.

- Hazardous and dangerous work allowance for occupations or jobs performed in workplaces with hazardous or dangerous elements.

- Attraction allowances, regional allowances as prescribed by law; allowances, subsidies, and living expenses paid by Vietnamese agencies abroad.

- Emergency hardship allowance, work accident allowance, occupational disease allowance, one-time allowance for childbirth or adoption, allowance for reduced working capacity, one-time retirement allowance, monthly survivor's allowance, and other allowances as prescribed by the law on social insurance.

- Severance pay, unemployment benefits.

- Social welfare benefits and other allowances, subsidies, and income that are not considered wages or salaries as stipulated by the Government.

Source: https://baohatinh.vn/21-khoan-thu-nhap-duoc-mien-thue-thu-nhap-ca-nhan-tu-nam-2026-post303943.html