Receive a maximum deduction for medical and educational expenses of 47 million VND when paying income tax

The Government has just issued Decree 253 guiding the Personal Income Tax Law 2025, which specifically states the level of family deductions for medical and educational expenses.

Accordingly, from July 1, taxpayers will receive a maximum deduction of 47 million VND per year for medical and education expenses before calculating personal income tax.

Specifically, expenses for medical examination and treatment at domestic medical facilities are reduced by a maximum of 23 million VND per year. Education and training costs at domestic establishments are reduced by no more than 24 million VND per year. These items must have invoices and documents, in which medical expenses must include a list of medical examination and treatment costs according to regulations of the Ministry of Health.

Previously, the Ministry of Finance calculated that the deduction for the taxpayer himself was 15.5 million VND, his dependents 6.2 million VND per month and the maximum amount for medical and educational expenses was 47 million VND per year. The total amount of money deducted for individuals with one dependent and medical and educational expenses is up to 307.3 million VND per year (ie 28.63 million VND per month). That is, taxpayers in this category must pay tax with income over 28.63 million VND per month, with tax rates starting from 5%.

The Personal Income Tax Law 2025 passed by the National Assembly last year adds regulations related to deductions for health and education of taxpayers and dependents.

According to data from the Resident Living Standards Survey, the average spending on health in 2024 per person is 3.5 million VND per year, 10.2 million VND for boarding, and 9.6 million VND for education and training. The Ministry of Finance calculates that each year a taxpayer and a dependent spend about 41 million VND on health and education.

According to the Ministry of Finance, the total annual family deduction for a taxpayer can be nearly 2.45 times the average income per capita in 2025 (125.5 million VND). This regulation helps reduce tax obligations for all taxpayers with medical and educational expenses. At the same time, taxpayers at lower tax levels will receive a higher rate reduction. It is estimated that the budget will reduce revenue by nearly 7,700 billion VND per year when applying this policy.