Starting July 1, 2026, Decree No. 253/2026/ND-CP takes effect, providing detailed guidelines on various cases eligible for personal income tax (PIT) exemption. In addition to the tax-exempt income items under current regulations, the Decree also clarifies tax exemption policies for the transfer, inheritance, and donation of real estate.
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22 Groups of Tax-Exempt Income
Under Decree No. 253/2026/ND-CP, there are 22 groups of income exempt from personal income tax. Aside from familiar items such as overseas remittances, scholarships, bank deposit interest, pensions, and insurance payouts, the Decree expands the scope of tax exemptions to encourage innovation, scientific-technological development, and green growth.
Some of the new tax-exempt income items include income from the transfer of carbon credits, emission reduction certificates, and green bonds; income from scientific research activities, innovative startup projects, and certain international cooperation programs as prescribed by law.
Tax Exemption for the Transfer, Inheritance, and Donation of Real Estate
The Decree continues to stipulate PIT exemptions for income arising from the transfer, inheritance, or donation of real estate between individuals with designated family relationships.
The applicable relationships include:
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Husband and wife.
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Natural parents and their natural children.
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Adoptive parents and their adopted children.
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Paternal/maternal parents-in-law and their daughters-in-law/sons-in-law.
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Paternal grandparents and their paternal grandchildren.
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Maternal grandparents and their maternal grandchildren.
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Siblings (biological brothers and sisters).
Notably, in cases of divorce where the division of real estate is carried out according to an agreement or a legally effective judgment/decision of the Court, the income arising from such asset division is also eligible for personal income tax exemption under the regulations.
The tax exemption is processed based on dossiers and procedures in compliance with the law on tax administration.
Conditions for Tax Exemption When Transferring a Sole Residential Property
In the case of selling a sole house or residential land-use right, individuals are only exempt from tax if they fully satisfy all prescribed conditions.
Specifically, at the time of transfer, the seller must own only one house or one residential land plot in Vietnam. If they own any other house or residential land, or additionally possess a future house or construction work (property to be formed in the future), they will not qualify as owning a sole property.
In addition to the property quantity condition, the transferor must have owned that real estate for at least 183 days leading up to the transaction, and the transfer must apply to the entire house or residential land-use right.
For jointly owned properties, only co-owners who do not own any other house or residential land will be considered for a tax exemption on their respective share of ownership.
Note
The aforementioned regulations clarify the conditions for applying personal income tax exemption policies, while establishing a unified basis for the declaration and fulfillment of tax obligations in real estate-related transactions.
References: Government Decree No. 253/2026/ND-CP; compiled article from Suc khoe & Doi song (Health & Life) Newspaper.