Personal income tax deductions in 2025

Discover the essential personal income tax deductions available in 2025 to maximize your savings and minimize your tax liability. Paying PIT is an obligation that every Vietnamese citizen needs to fulfill when earning income arising from salaries, wages or production and business activities. In the article below, Viet An tax agent will help you understand the most accurate and updated taxable income, personal income tax deductions in Vietnam 2025.

Concept of PIT

PIT is a tax levied on the taxable income of individuals arising in the tax period. PIT is a direct tax, which is highly sensitive to other taxes. PIT is usually highly progressive and does not distort the price of goods and services.

Personal income tax calculation formula

Taxable income from salaries and wages

Incomes from salaries and wages are incomes received by employees from employers, including:

• Salaries, wages and amounts of the nature of salaries and wages in the form of cash or non-cash.
• Allowances and subsidies, except for the following allowances and subsidies:
  • Allowances, monthly preferential allowances and lump-sum allowances in accordance with the law on incentives for people with meritorious services.
  • Monthly allowances, lump-sum allowances for subjects participating in the resistance war, defending the fatherland, performing international tasks, and volunteer youth who have completed their tasks.
  • Defense and security allowances; subsidies for the armed forces.
  • Toxic and dangerous allowances for industries, occupations or jobs in the workplace with toxic and dangerous elements.
  • Attraction allowances, regional allowances.
  • Unexpected hardship allowance, occupational accident allowance, occupational disease allowance, lump-sum allowance upon childbirth or adoption, maternity allowance, convalescence allowance, post-maternity health rehabilitation, allowance due to working capacity impairment, lump-sum pension allowance, etc. monthly survivorship, severance allowance, job-loss allowance, unemployment allowance and other allowances as prescribed by the Labor Code and the Law on Social Insurance.
  • Allowances for social protection beneficiaries in accordance with law.
  • Service allowances for senior leaders.
  • Allowances for village and hamlet health workers.
  • Industry-specific allowances.
• The remuneration received is in the form of: commission for selling goods, brokerage commission; money for participation in scientific and technical research projects; money for participation in projects and schemes; royalties and other remunerations
• Money received from participation in business associations, corporate boards of directors, enterprise control boards, project management boards, management boards, associations, professional associations and other organizations.
• Cash or non-cash benefits other than salaries and wages paid by employers that taxpayers are entitled to in any form such as:
  • Housing, utilities and ancillary services (not exceeding 15% of total taxable income (excluding rent)
  • Compulsory insurance purchase money
  • Other service expenses for individual employees: health care, recreation, sports, entertainment, cosmetology and other benefits.
• Monetary or non-monetary bonuses in any form, including securities awards, except for the following: Bonuses attached to state-conferred titles; bonuses attached to national and international awards; bonuses for technical improvements, inventions and inventions recognized by competent state agencies; bonuses for detecting and declaring illegal acts to competent state agencies.

Non-taxable incomes from salaries and wages

• Support for pre-medical examination for employees and their relatives.
• Mid-shift meals, lunch not exceeding the prescribed level (730,000 VND/month)
• Money for buying round-trip air tickets for foreign employees and Vietnamese workers working abroad on leave once a year.
• Tuition fees for children of foreign workers studying in Vietnam, children of Vietnamese workers working abroad studying abroad according to the education level from kindergarten to high school.
• The wages for overnight and overtime work are paid higher than the salaries and wages for daytime and overtime work as prescribed by law.
• Pensions paid by social insurance, pensions received monthly from the Voluntary Pension Fund.

Personal income tax deductions in 2025

Here, we will share with readers the latest 2025 personal income tax deductions:

Family circumstance deduction

• For taxpayers, it is 11 million VND/month, 132 million VND/year.
• For dependents: 4.4 million VND/month. Specifically:
  • As a person that the taxpayer is responsible for nurturing, a dependent is only deducted for 1 taxpayer.
  • Being a natural child, adopted child, illegitimate child; spouses, natural fathers, mothers-in-law, fathers-in-law, mothers-in-law and other individuals other than working age or of working age who are disabled, incapable of working, have no income or the average income does not exceed 1 million VND/month.
• Deductions for charitable, humanitarian, and study promotion contribution
• Deduction of compulsory insurance premiums, voluntary pension funds
• Compulsory insurance as prescribed.
• The voluntary pension fund deducts a maximum of 1 million VND/month (12 million VND/year).

Tax rates when calculating personal income tax

Above are all the latest personal income tax deductions in Vietnam 2025 as well as how to calculate PIT for people who generate income from salaries and wages. Please contact Viet An tax agent if you need PIT finalization support!