PERSONAL INCOME TAX EXEMPTION ON SALARY AND WAGES OF EXPERTS WORKING FOR INNOVATION CENTERS, IS IT RIGHT?

Personal income tax exemption on salary and wages of experts working for innovation centers, is it right? Which subjects must pay personal income tax according to current regulations? Let’s find out more with Pham Consult!

Personal income tax exemption on salary and wages of experts working for innovation centers, is it right?

Pursuant to Article 10 of Resolution 198/2025/QH15, regulations on tax, fee and charge support when implementing special mechanisms and policies for private economic development are as follows:

Tax, fee and charge support

1. Exemption from corporate income tax for a period of 02 years and 50% reduction of payable tax in the next 04 years for income from innovative start-up activities of innovative start-up enterprises, innovative start-up investment fund management companies, and intermediary organizations supporting innovative start-up. The determination of tax exemption and reduction period shall be implemented in accordance with the provisions of the law on corporate income tax.
2. Exemption from personal income tax and corporate income tax for income from the transfer of shares, capital contributions, capital contribution rights, rights to purchase shares, rights to purchase capital contributions in innovative start-up enterprises.
3. Exemption from personal income tax for 02 years and 50% reduction of tax payable for the next 04 years for income from salaries and wages of experts and scientists received from innovative start-ups, research and development centers, innovation centers, and intermediary organizations supporting innovative start-ups.
4. Exemption from corporate income tax for small and medium-sized enterprises for 03 years from the date of issuance of the first Business Registration Certificate.
5. Costs of training and retraining human resources of large enterprises for small and medium-sized enterprises participating in the chain are included in deductible expenses to determine taxable income when calculating corporate income tax.
6. Business households and business individuals do not apply the lump-sum tax method from January 1, 2026. Business households and business individuals pay taxes according to the law on tax administration.
7. Stop collecting and paying business license fees from January 1, 2026.
8. Exempt organizations, individuals, and businesses from collecting fees and charges for documents that need to be reissued or replaced when restructuring the state apparatus according to the provisions of law.

Accordingly, personal income tax will be exempted for a period of 02 years and the tax payable will be reduced by 50% in the next 04 years for income from salaries and wages of experts and scientists received from innovative startups, research and development centers, innovation centers, and intermediary organizations supporting innovative startups.

Which subjects must pay personal income tax according to current regulations?

The subjects of personal income tax are specified in Article 2 of the Law on Personal Income Tax 2007 as follows:

Taxpayers

1. The subjects of personal income tax are resident individuals with taxable income as prescribed in Article 3 of this Law arising within and outside the territory of Vietnam and non-resident individuals with taxable income as prescribed in Article 3 of this Law arising within the territory of Vietnam.
2. A resident individual is a person who meets one of the following conditions:
3. a) Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of being present in Vietnam
4. b) Having a permanent residence in Vietnam, including having a registered permanent residence or having a rented house to live in Vietnam under a term rental contract.
5. A non-resident individual is a person who does not meet the conditions specified in Clause 2 of this Article.

Accordingly, the subjects of personal income tax are resident individuals with taxable income specified in Article 3 of the Law on Personal Income Tax 2007 arising within and outside the territory of Vietnam and non-resident individuals with taxable income specified in Article 3 of the Law on Personal Income Tax 2007 arising within the territory of Vietnam.

A resident individual is a person who meets one of the following conditions:

– Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first day of being present in Vietnam

– Having a permanent residence in Vietnam, including having a registered permanent residence or having a rented house to live in Vietnam under a fixed-term rental contract.

A non-resident individual is a person who does not meet the conditions specified in Clause 2, Article 2 of the Law on Personal Income Tax 2007.

If the amount of tax paid is greater than the amount of tax payable, will it be refunded?

Pursuant to the provisions of Article 8 of the Law on Personal Income Tax 2007 as follows:

Tax management and tax refund

1. Tax registration, declaration, tax deduction, tax payment, tax finalization, tax refund, handling of tax law violations and tax management measures shall be carried out in accordance with the provisions of the law on tax management.
2. Individuals shall be entitled to tax refunds in the following cases:
3. a) The amount of tax paid is greater than the amount of tax payable
4. b) Individuals who have paid tax but have taxable income that is not yet taxable
5. c) Other cases as decided by competent state agencies.

Accordingly, if the tax amount paid is greater than the tax amount payable, it will be refunded according to the above regulations.