Vietnam's Ministry of Home Affairs has proposed exempting the salaries and bonuses of talented individuals and their associates from personal income tax for five years from the date the income arises. The proposal sits in Article 10 of a draft National Assembly resolution on special mechanisms and policies for attracting and employing talent, which the ministry has put out for comment, Báo Chính phủ (the Government's online newspaper) reported on 26 October. The draft also offers a tax break to companies that employ such talent and a dedicated visa aimed at drawing in foreign talent.
Who would benefit, and how
The 16-article draft covers talent who are Vietnamese citizens, overseas Vietnamese or foreigners, as well as agencies, organisations, public service units, businesses of all economic sectors and other related organisations and individuals. Its main incentives, according to Báo Chính phủ:
| Who | What the draft proposes |
|---|---|
| Talent and their associates | Five-year personal income tax exemption on salaries and bonuses from the date the income arises; no double incentives on the same income |
| Talent at companies carrying out strategic tasks without state budget funding | Also eligible for the personal income tax incentive |
| Companies employing talent and associates on strategic tasks | May add to deductible expenses, when calculating corporate income tax, an amount equal to 50% of the salaries and bonuses actually paid to them |
| Holders of the proposed Vietnam talent visa | A matching temporary residence card that can be extended or converted under the law; exemption from work permits, the right to work for several employers without a permit for each, and no new visa when changing jobs |
| Spouses and children under 18 | UĐ2 visas and matching temporary residence cards, with support for residence, study and daily life in Vietnam |
The draft also says the state would allocate about 0.1% of GDP a year to talent work, within the total resources set aside for science and technology, innovation and digital transformation.
How it differs from current incentives
According to the draft submission cited by Báo Chính phủ, existing incentives target particular types of income, sectors or activities that meet sector-specific conditions. The new proposal ties incentives to strategic tasks instead, without limiting them to any single technology sector. The mechanism is meant to identify, recommend, select, attract, use and value talent for strategic missions, key programmes and projects, and major problems facing the country, sectors and localities.
To make it work, Báo Chính phủ said, there would need to be a way to confirm the tasks, check the amounts actually paid and prevent anyone claiming the same incentive twice. The newspaper also linked to related documents, including Conclusion No. 105-KL/TW on attracting and employing talent in spearhead sectors and the Government's action programme on the same subject.
What it means for workers and companies
For workers, the tax incentive is not tied to public funding: talent at companies doing strategic work without state money would also qualify. For businesses of all kinds, the extra deduction of 50% of salaries and bonuses paid to talent and their associates would reduce taxable corporate income. For overseas Vietnamese and foreign experts, the package bundles tax, visa, residence card and work permit benefits with residence and schooling support for spouses and children under 18.
What's next
The draft is open for comment, and Báo Chính phủ has published the full text for readers to give feedback. As a draft National Assembly resolution, none of these proposals takes effect until the National Assembly passes it.