The government recently issued Decree 253, guiding the 2025 Personal Income Tax Law, which details family deductions for medical and education costs. Starting July 1, taxpayers can deduct up to 47 million VND annually for medical and education expenses before personal income tax calculation.

Specifically, expenses for medical examinations and treatment at domestic healthcare facilities are deductible up to 23 million VND per year. Education and training costs at domestic institutions are deductible up to 24 million VND per year. These expenses require invoices and receipts, with medical costs also needing a breakdown of examination and treatment fees as regulated by the Ministry of Health.

Previously, the Ministry of Finance calculated that a taxpayer with one dependent and incurring medical and education expenses could receive deductions totaling up to 307,3 million VND annually, equivalent to 28,63 million VND per month. This total comprises 15,5 million VND for the taxpayer themselves, 6,2 million VND monthly for one dependent, and the maximum 47 million VND per year for medical and education expenses.

Therefore, taxpayers with monthly incomes exceeding 28,63 million VND will be subject to tax, with rates starting from 5%.

Students taking graduation exams in Ho Chi Minh City, June 2026. Photo: Quynh Tran

The 2025 Personal Income Tax Law, approved by the National Assembly last year, introduced additional provisions for medical and education deductions for taxpayers and their dependents.

According to data from the Household Living Standards Survey, the average per capita medical expenditure in 2024 was 3,5 million VND annually, with inpatient care at 10,2 million VND, and education and training at 9,6 million VND. The Ministry of Finance estimates that a taxpayer and one dependent spend approximately 41 million VND per year on medical and education costs.

According to the Ministry of Finance, the total annual family deduction for a taxpayer could be nearly 2,45 times the average per capita income in 2025 (125,5 million VND). This regulation aims to reduce tax obligations for all taxpayers incurring medical and education expenses. Additionally, taxpayers in lower tax brackets will receive higher proportional reductions. The state budget is estimated to see a revenue reduction of nearly 7,700 billion VND annually due to this policy.

Phuong Dung