Vietnam introduces new personal income tax deductions for medical and education costs

Starting July 1, 2026, resident individuals in Vietnam can deduct certain medical and educational expenses from their taxable income earned from salaries and wages. This policy, outlined in Decree No. 253/2026/ND-CP, applies to both the taxpayers and their dependents.

For medical expenses, the maximum annual deduction is 23 million VND for treatments at domestic medical facilities covered under the health insurance list. For education and training expenses, the maximum annual deduction is 24 million VND. Eligible educational costs include tuition for preschool, general education, vocational training, higher education, and other professional skills at recognized institutions.

To qualify for these deductions, taxpayers must provide valid invoices and documents as required by law. Specifically for medical costs, a list of examination and treatment costs as prescribed by the Minister of Health is also required. Invoices must clearly display the information of the taxpayer or their dependent. Furthermore, these expenses cannot be covered by other sources, such as state budget funds, social insurance, or health insurance payments.