Wage income paid via bank transfer is subject to personal income tax under Vietnam's Personal Income Tax Law

Salary payments to workers by bank transfer: is this income taxed? The wage income paid to workers via bank transfer: will this income be taxed? According to Clause 2, Article 3 of the Personal Income Tax Law 2025, taxable income is defined as follows: "Article 3. Taxable income Taxable personal income includes the following types of income, except for income exempt from tax as provided in Article 4 of this Law: 2. Income from wages and salaries, including: a) Wages, salaries and other items with salary-like characteristics; b) Fees, emoluments, benefits in cash or in kind in any form; c) Allowances, subsidies, and other income that do not have the character of wages or salaries, except for allowances and subsidies specified by law for cases such as contributors to the state, defense and security, hazardous or dangerous work, attractive allowances, regional allowances, living allowances funded by Vietnamese authorities abroad, one-time allowances on events like birth or adoption, compensation for disabilities, retirement allowances, and other allowances under social insurance law; employment support and other allowances not classified as wages or salaries under law." Income from wages is subject to personal income tax on wages and salaries. Therefore, wage income deposited into a bank account falls within the taxable scope under personal income tax on wages and salaries. This case, however, does not fall under personal income tax on business income for households or individuals conducting business under Decree 68/2026/NĐ-CP. Article 4, Personal Income Tax Law: Tax-exempt income 1. Income from transfers, inheritances, or gifts of real estate between spouses; parents and children; or other specified relatives; 2. Income from transfer of a house, land use rights, and assets attached to land in cases where a person only owns a single house and land in Vietnam; 3. Income from the value of land use rights allocated by the State to individuals; 4. Income of households or individuals directly producing agricultural products, forest crops, livestock, or fisheries that have not been processed into other products or have only undergone basic processing; salt production; income from shareholding in a cooperative or farmers cooperative; 5. Income from the conversion of agricultural land allocated to a household or individual by the State for production; 6. Interest income from government bonds, local government bonds, or deposits at credit institutions, and life insurance proceeds; 7. Income from remittance; 8. Night-shift wages, overtime wages, and wages for days not休假 as per law; 9. Pension income funded by the social insurance fund; income from supplementary pension funds; and income from voluntary pension funds; 10. Scholarships, including: a) Scholarships funded by the state budget; b) Scholarships from domestic or foreign organizations under support programs; 11. Income from compensation under life or non-life insurance contracts, workers’ compensation, or other government-mandated compensation; 12. Income from organizations and funds approved by competent state authorities for charitable, humanitarian, non-profit purposes; 13. Income from foreign aid for charitable or humanitarian purposes under government or non-government programs approved by authorities; 14. Wages, salaries of seafarers who are Vietnamese nationals working for foreign shipping lines or Vietnamese-flag vessels operating internationally; 15. Income of ship owners and crew on ships used for providing goods or services at sea; 16. Income from the first transfer of credits or allowances related to greenhouse gas emission reductions; income from green bonds’ interest; income from first transfer of green bonds after issuance; 17. Income from wages or salaries for scientific, technological tasks and innovation; 18. Income from authors’ rights of scientific, technological, and innovative tasks when results are commercialized under law on science, technology, and intellectual property; 19. Income of individual investors, professionals from startup projects, founders investing in innovative startups, or individuals investing in venture capital funds; 20. Wages, salaries for foreign experts working on projects funded by non-refundable ODA sources, international collaborations, or assignments of foreign missions in Vietnam; individuals working in international organizations’ offices in Vietnam; individuals participating in UN peacekeeping forces; 21. Income after corporate income tax for private individual business owners who are single-member LLCs or private entrepreneurs. MT Nhịp sống thị trường