Vietnam tax guidance allows medical and education deductions

The Hanoi Tax Department has issued guidance regarding personal income tax deductions for medical and educational expenses. Starting July 1, 2026, resident individuals earning wages and salaries may be eligible for deductions totaling up to 47 million VND per year.

Under Decree No. 253/2026/ND-CP, medical expenses at domestic healthcare facilities covered by health insurance can be deducted up to 23 million VND annually. Educational expenses at domestic institutions, including preschool, general education, vocational, and higher education, can be deducted up to 24 million VND annually. These deductions apply to both the taxpayer and their dependents.

To qualify, taxpayers must provide valid invoices and documents that include the taxpayer's or dependent's information. Medical deductions specifically require a list of examination and treatment costs as prescribed by the Ministry of Health. Notably, these deductions are applied to taxable income before tax calculation rather than being a direct tax refund, and taxpayers must perform their own tax finalization instead of authorizing their income-paying entities to do so.