Vietnam proposes tax incentives for talent and clarifies household tax rules

Vietnam is considering new tax policies aimed at both business households and the recruitment of high-level talent.

A draft resolution from the National Assembly proposes a five-year personal income tax exemption for salaries and bonuses paid to talented individuals and their associates. To support businesses, the proposal allows companies engaged in national strategic tasks to deduct an additional 50% of the actual salary and bonus costs paid to talent when calculating corporate income tax. This policy aims to attract and retain high-quality human resources by focusing on competency and results rather than strictly on degrees or seniority.

Separately, tax authorities have clarified regulations for business households regarding revenue thresholds. For households that experience a sudden surge in revenue causing their annual total to exceed 3 billion VND, they are not required to recalculate taxes from the beginning of the year. Instead, they must transition to a different tax calculation method—based on taxable income rather than a percentage of revenue—starting from the following year. This new method is intended to be applied stably for two consecutive years.