HCMC – A draft Government decree guiding the 2025 Personal Income Tax Law proposes tax exemptions and reductions for high-tech talent and long-term investors, aiming to ease tax burdens and stimulate capital markets.
The Ministry of Finance is seeking public feedback on the draft decree detailing several provisions of the Personal Income Tax Law.
According to the ministry’s draft decree, tax policy would be adjusted to reduce tax obligations and introduce preferential mechanisms to support development goals, such as digital transformation and capital market growth.
Notably, the draft proposes a five-year personal income tax exemption on salaries and wages for high-quality and high-tech workers employed in selected priority sectors, aiming to attract and retain skilled talent, particularly in technology and innovation fields.
For the investment market, the draft proposes exempting personal income tax on income from the transfer of open-end fund certificates, provided investors hold them for at least two years.
It also includes a 50% tax reduction for returns received by individual investors from securities investment funds and real estate investment funds for a specified period. These incentives are expected to encourage long-term capital flows and support the development of capital markets.
The draft also expands the list of tax-free income, raises deductible limits for contributions to supplementary pension and life insurance schemes, and increases taxable thresholds for certain types of income, including inheritance, gifts, royalties and franchise income.
These adjustments are expected not only to reduce tax liabilities in many cases but also to simplify procedures for tax declaration, payment and finalization.
