VI From July 1, 2026, the deduction of medical and education-training expenses incurred by taxpayers and their dependents when calculating Personal Income Tax (PIT) is governed by Decree No. 253/2026/ND-CP, which officially took effect on the same date. So, who is eligible for these deductions, which expenses are deductible, and what are the applicable deduction limits? Let’s explore with Pham Consult!
1. Who is eligible for deductions for medical and education expenses when calculating PIT?
Pursuant to Clause 2, Article 11 of the Law on Personal Income Tax, the applicable deductions are prescribed as follows:
“Deductions for charitable and humanitarian contributions and other deductions
Resident individuals may deduct the following amounts from their taxable income before calculating tax on income from salaries and wages:
…
2. Expenses for medical care and education-training of the taxpayer and the taxpayer’s dependents shall be deducted from income before tax calculation at the levels prescribed by the Government.”
Accordingly, resident individuals earning income from salaries and wages may deduct medical and education-training expenses incurred for themselves and their dependents, provided that the conditions prescribed by law are satisfied.
2. Which medical and education expenses are deductible, and what are the deduction limits?
Pursuant to Clause 2, Article 49 of Decree No. 253/2026/ND-CP, deductions for charitable and humanitarian contributions and other deductions are prescribed as follows:
“…2. A taxpayer who is a resident individual may deduct from taxable income before calculating tax on income from salaries and wages expenses for medical care and education-training of the taxpayer and the taxpayer’s dependents, including:
a) Expenses for medical examination and treatment at domestic medical facilities falling within the scope of the list of expenses covered by health insurance, up to a total maximum of VND 23 million per year;
b) Expenses for education-training at domestic educational and training institutions, up to a total maximum of VND 24 million per year, specifically: tuition fees for preschool education, general education, vocational education and higher education in accordance with the laws on education and training, as well as other professional skills training at educational and training institutions.”
Accordingly, expenses for medical examination and treatment at domestic medical facilities may be deducted up to a maximum of VND 23 million per year. Expenses for education-training at domestic educational and training institutions may be deducted up to a maximum of VND 24 million per year, provided that such expenses fall within the prescribed categories.
3. What documents must taxpayers have to claim deductions for medical and education expenses?
Pursuant to Clause 3, Article 49 of Decree No. 253/2026/ND-CP, the conditions for claiming such deductions are as follows:
“a) Invoices and supporting documents must be available in accordance with the law; in the case of medical expenses, a statement of medical examination and treatment expenses used at medical examination and treatment facilities as prescribed by the Minister of Health is additionally required;
b) The invoices and supporting documents used to claim deductions must contain information of the taxpayer or the taxpayer’s dependent;
c) The expenses must not be paid from other sources, including funding, support or payments made on behalf of the taxpayer by organizations or individuals, the state budget, social insurance funds, health insurance funds, or insurance payments in any form.”
Accordingly, to claim the deductions, taxpayers must prepare sufficient invoices and supporting documents in accordance with the above regulations. In particular, medical expenses must additionally be supported by a statement of medical examination and treatment expenses. The relevant documents must contain information of the taxpayer or the taxpayer’s dependent, and the expenses must not have been paid from other sources.
4. Are there any medical or education expenses that are not deductible even if the employee actually incurs such expenses?
According to Official Letter No. 47199/HAN-QLDN5 of the Hanoi Tax Department providing guidance on tax policies concerning deductions from taxable income for PIT purposes in respect of medical and education expenses, the following guidance applies:
“4. Where tax reduction is applied to medical expenses under Article 40 of Decree No. 253, or where medical and education-training expenses arise under Points b, g and i, Clause 4, Article 8 of Decree No. 253, such expenses shall not be included in the deductions prescribed in this Clause 2.”
Accordingly, certain expenses, although actually incurred by employees, are not included in the deductions under Clause 2, Article 49, including the following:
· Employer support for medical examination and treatment of serious illnesses:
“b) Any amount of support provided by the employer for the medical examination and treatment of serious illnesses of the employee or the employee’s relatives, including biological children, adopted children, stepchildren of the employee’s spouse, spouse, biological parents, parents-in-law, stepfather, stepmother, adoptive parents.
The non-taxable amount of such support shall be the actual amount supported by the employer based on invoices and supporting documents, but must not exceed the medical expenses paid by the employee or the employee’s relatives after deducting any amount paid by an insurance organization (if any).
The determination of serious illnesses shall comply with regulations of the Minister of Health.”
· Tuition fees paid or reimbursed by the employer in certain cases:
“g) Tuition fees for children of foreign employees studying in Vietnam, or children of Vietnamese employees working overseas and studying overseas from preschool to upper secondary education, where such tuition fees are paid or reimbursed by the employer on behalf of the employee.”
· Training expenses for improving professional qualifications and skills paid or reimbursed by the employer:
“i) Expenses paid or reimbursed by the employer for training to improve the employee’s professional qualifications or skills where such training is relevant to the employee’s professional duties or is provided in accordance with the employer’s training plan.”
5. When must taxpayers file their own tax finalization to claim the deductions?
Pursuant to Clause 3, Article 51 of Decree No. 253/2026/ND-CP guiding the Law on Personal Income Tax, regulations on tax finalization provide as follows:
“3. Where, during a tax period, an individual requests a tax reduction due to natural disasters, epidemics, fires, accidents or serious illnesses as prescribed in Article 40 of this Decree, or incurs deductions prescribed in Article 49 of this Decree and requests that such deductions be applied to income before tax calculation, the taxpayer must personally carry out tax finalization.”
Accordingly, where an individual incurs deductible expenses under Article 49 and requests that such expenses be deducted from income before tax calculation, the individual must personally file a PIT finalization.
