Vietnam Ministry of Home Affairs proposes 5-year tax exemption for talents

The Vietnamese Ministry of Home Affairs is seeking public opinion on a draft resolution to establish special mechanisms for attracting and utilizing talent to fulfill strategic national tasks, key programs, and major projects.

A central proposal includes a five-year personal income tax exemption for salaries and bonuses earned by talents and their associates. This incentive would apply to Vietnamese citizens, overseas Vietnamese, and foreign nationals. The draft also suggests that businesses employing these talents could be allowed to include an additional 50% of the actual salary and bonus costs as deductible expenses when determining taxable income.

To support these efforts, the State proposes allocating approximately 0.1% of annual GDP to talent development within the total resources dedicated to science, technology, innovation, and digital transformation. Additionally, the draft includes provisions for issuing Vietnam Talent Visas and temporary residence cards for foreign experts. The mechanism aims to move beyond industry-specific incentives toward a broader model tied to strategic national missions.