Lunch Allowance of Up to VND 1.2 Million per Employee per Month Is Exempt from Personal Income Tax (PIT)
On 30 June 2026, the Government issued Decree No. 253/2026/ND-CP, detailing the implementation of several provisions of the Law on Personal Income Tax. One notable provision is that meal allowances of up to VND 1.2 million per employee per month are exempt from Personal Income Tax (PIT).
Lunch Allowance Exempt from PIT
Under the Decree, employment income subject to PIT includes salaries, wages, remuneration, and all monetary or non-monetary benefits received by employees from employers. Notable provisions include:
- Lunch and mid-shift meal allowances exceeding VND 1.2 million per employee per month are subject to PIT. However, if the employer provides meals directly (such as operating a canteen, purchasing meal boxes, or issuing meal vouchers), these benefits are not treated as taxable income.
- Payments for participation in research projects, programs, or proposals; royalties under applicable laws; teaching fees; and compensation for cultural, artistic, sports, or athletic performances are included in taxable income.
- Remuneration received for serving on a Board of Directors, Supervisory Board, Management Council, professional associations, social organizations, and other legally established organizations is taxable.
- Service fees earned by individuals who are not registered for business or tax purposes, regardless of whether they hold professional licenses or certificates, are subject to PIT.
- Membership fees and service expenses provided for an individual’s healthcare, recreation, sports, entertainment, or beauty services are taxable. However, if such services are provided collectively and no individual or group is specifically identified on the membership card or voucher, they are not taxable.
- Office supplies, travel allowances, telephone expenses, and work attire allowances exceeding the statutory limits are taxable.
- Employer contributions to supplementary retirement funds, voluntary pension insurance, and life insurance premiums on behalf of employees are also included in taxable income.
Decree No. 253/2026/ND-CP takes effect from 1 July 2026: 253_2026_ND-CP_714881
