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In addition to personal and dependent deductions, taxpayers may soon be allowed to include expenses for healthcare and education before determining their taxable income.
This is a proposal from the Ministry of Finance in the draft Decree detailing certain provisions of the Personal Income Tax Law, which is currently open for public comment.
According to Option 1, the maximum reduction for domestic medical examination and treatment costs is 20 million VND/year, and the maximum reduction for education and training costs is 21 million VND/year.
Meanwhile, Option 2 increases the medical expense deduction to 23 million VND/year and the education deduction to 24 million VND/year.
To be eligible, taxpayers must have complete and valid invoices and supporting documents. Medical expenses, in particular, must be accompanied by a detailed list as prescribed by the Ministry of Health and cannot be reimbursed from the state budget, insurance, or other support programs. Incorrect declarations will result in back taxes and penalties as per regulations.
The Ministry of Finance stated that this proposal aims to share the burden of essential costs amidst rising spending on healthcare and education, while also encouraging investment in health and learning.
