Beginning on July 1, 2026, individual taxpayers residing in Vietnam will be able to deduct specific medical and educational expenses from their taxable income. This initiative is designed to support taxpayers who incur costs related to healthcare and education for themselves and their dependents, provided they meet certain criteria.

The Hanoi Tax Department has issued guidance on this matter, emphasizing the importance of compliance with regulations to ensure that taxpayers can fully benefit from these deductions. Taxpayers must retain proper invoices and receipts to validate their claims, as deductions will only be granted if the expenses fall within the stipulated limits and conditions.

Maximum Deduction Limits

According to the guidance, the maximum deductible amount for medical expenses is set at 23 million VND per year. This applies to costs incurred for medical examinations and treatments at domestic healthcare facilities that fall within the coverage of health insurance. For educational expenses, the maximum deductible amount is 24 million VND per year. This includes tuition fees for preschool, primary, secondary, vocational, and higher education as defined by the relevant educational laws.

Conditions for Deductions

To qualify for these deductions, taxpayers must ensure that their expenses are supported by valid invoices and receipts. For medical expenses, additional documentation may be required to confirm that the services received are eligible for deduction. Taxpayers are encouraged to keep thorough records of their expenses to facilitate the deduction process during tax filing.

This new regulation is expected to have a direct impact on many workers who have incurred medical and educational expenses throughout the year. By understanding and adhering to the requirements, taxpayers can effectively reduce their taxable income and enhance their financial well-being.