Background English
1416687601782881237.jpg
04/01/2026
chung-tu-khau-tru-thue-tncn-la-gi-1649061597640388139452.jpeg

Source: Internet

Properly understanding income items not subject to Personal Income Tax (PIT) helps optimize costs and legal benefits for employees. This article provides a detailed update on non-taxable PIT income items and important considerations.

1. Allowances and Subsidies Not Subject to PIT

Legal BasisTax-Exempt Income ItemConditions for Exemption
Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC(1) Monthly preferential subsidies/allowances; lump-sum subsidies for people with meritorious services to the revolutionAccording to laws on preferential treatment for people with meritorious services; paid to correct subjects, at correct levels, with valid records.

(2) Monthly or lump-sum subsidies for participants in resistance wars, national defense, or international missions; youth volunteers who completed their dutiesAccording to lists of subjects and regimes prescribed by competent authorities; paid correctly according to regulations.

(3) National defense and security allowances; subsidies for armed forcesApplied to armed forces according to specialized regulations; paid at correct levels to correct subjects.

(4) Toxic or dangerous work allowancesApplied to occupations or workplaces with toxic/dangerous factors according to specified lists; paid per regulations.

(5) Attraction allowances; regional allowancesEnjoyed per decisions of competent authorities for eligible areas/fields; paid at correct levels.

(6) Sudden hardship subsidies; labor accident or occupational disease subsidies; lump-sum subsidies upon childbirth/adoption; maternity regimes; post-maternity recovery; subsidies for reduction in working capacity; lump-sum retirement subsidies; monthly survivors' benefits; severance pay, job loss benefits, unemployment benefits; other subsidies per Labor Code and Social Insurance LawPaid according to the Labor Code, Law on Social Insurance, and guiding documents; with valid records/decisions; paid correctly according to regulations.

(7) Subsidies for social protection subjectsAccording to lists and levels of social protection laws; paid from appropriate sources per valid decisions.

(8) Service allowances for high-ranking leadersAccording to regulations on regimes for high-ranking leadership titles; paid to correct subjects at correct levels.
Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC; amended by Clause 1, Article 11 of Circular 92/2015/TT-BTC(9) One-time relocation allowance when moving to areas with especially difficult socio-economic conditions; one-time support for officials working on sea/island sovereignty; one-time relocation allowance for foreigners residing in VN, Vietnamese working abroad, or long-term overseas Vietnamese returning to VN to workRequires mobilization/relocation decisions; area belongs to especially difficult list; relocation cases within scope of Art. 11 Circular 92/2015; paid once at regulated levels.
Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC(10) Allowances for hamlet/village health workersAccording to regimes applied to hamlet health workers; paid from sources and at levels prescribed by the State.
Point b, Clause 2, Article 2 of Circular 111/2013/TT-BTC(11) Occupation-specific allowancesBelonging to lists and levels of specific allowances issued by competent authorities; paid to correct subjects per regulations.

2. Fixed Expenditure Items Not Included in Taxable Income

Legal BasisTax-Exempt Income ItemConditions for Exemption
Item d.4, Point d, Clause 2, Article 2 of Circular 111/2013/TT-BTCFixed expenditures for stationery, business travel, phone, uniforms, etc.Subjects: Officials, civil servants, political/social organizations, enterprises... Fixed expenditure levels for the State sector follow Ministry of Finance guidelines.


For employees in business organizations, representative offices... according to Corporate Income Tax (CIT) guidelines.


For employees in international organizations or foreign representative offices: Levels follow the organization's or office's regulations.


Portions exceeding prescribed levels are included in taxable income.

Fixed business travel allowanceMust comply with internal/financial regulations or company policies.


Counted as reasonable expenses when determining CIT taxable income.


Portions exceeding prescribed levels are included in taxable income.

Fixed phone allowanceMust be specifically stated in the Labor Contract, Collective Labor Agreement, or Financial/Internal/Bonus Regulations.


Counted as deductible expenses when determining CIT taxable income.


Portions exceeding prescribed levels are included in taxable income.

Uniform allowanceUniforms in kind: not subject to PIT.


Cash uniform allowance: exempt up to 5,000,000 VND/person/year; excess is taxable.


Cases of both cash and kind: cash up to 5M/year, kind is not subject to PIT.


For specific occupations: per specific Ministry of Finance regulations.
Item g.10, Point g, Clause 2, Article 2 of Circular 111/2013/TT-BTC; Clause 9, Article 34 of Decree 44/2025/NĐ-CPMid-shift meals or lunch moneyOrganized by the employer or paid directly/via meal vouchers.


Expenditure levels per collective labor agreement/internal rules, business regulations, or Labor Code.


Paid at agreed levels are exempt from PIT; excess portions are taxable.


From June 15, 2025: The 730,000 VND/person/month cap is abolished. Meal allowances will be based on agreements or business regulations.
Clause 4, Article 11 of Circular 92/2015/TT-BTC; Item d.5, Point d, Clause 2, Article 2 of Circular 111/2013/TT-BTCShuttle transport for employees from home to workplace and vice versaExpenses for shuttle services for employees will not be included in their taxable income according to unit regulations.


Does not apply to fixed cash allowances for fuel, parking, or travel: these portions are subject to PIT.
Item d.6, Point d, Clause 2, Article 2 of Circular 111/2013/TT-BTCPayments on behalf for training and skills improvement.If the training content fits the professional expertise or follows the production/business plan of the unit, it is not included in the employee's taxable income.