Vietnam Talent Visa proposed with 5-year tax break, not open to most nomads

Vietnam's Ministry of Home Affairs has proposed a new Vietnam Talent Visa for selected foreign experts. It would come with a five-year personal income tax exemption on salaries and bonuses and a waiver from work permit rules. The plan is part of a 16-article draft National Assembly resolution that the ministry has put out for public comment. None of it's in force yet.

What the draft resolution would offer

The draft covers Vietnamese citizens, overseas Vietnamese and foreign nationals. For foreigners who qualify, the package would include:

• Income tax: salaries and bonuses of talent and their associates exempt from personal income tax for five years from when the income arises, with no doubling of incentives on the same income.

• Vietnam Talent Visa: a matching temporary residence card, with extensions and changes of residence purpose allowed under existing conditions.

• Work permits: no permit needed, work for several agencies, organizations and businesses allowed without a separate permit for each and no visa reissue when changing jobs.

• Family: spouses and children under 18 eligible for UĐ2 visas and matching residence cards.

Employers that use talent on strategic tasks would also get an extra corporate tax deduction on those salaries. Outlets have reported different rates for that deduction.

Who would count as talent

The draft lists four criteria. Candidates would need recognized achievements, exceptional ability in fields such as research, technology or management, the ability to lead strategic tasks and key projects or proven potential. The draft doesn't require academic titles, degrees, seniority or talent awards, except where a profession requires a license. The government and local authorities would set detailed criteria for each sector, Vietnam Lawyers Magazine reported.

Foreign experts gain, most nomads stay outside

The tax break applies to salaries and bonuses for talent and associates working on strategic tasks. That means remote workers paid by foreign clients or employers while in Vietnam on an e-visa or visa-free stay fall outside the scheme.

Nothing in the reported draft creates a remote-work route. Foreign specialists hired in Vietnam for strategic projects are the group who stand to gain. That includes people at private companies that don't use state funds.

The family provision uses the UĐ2 category, which Vietnam already uses for dependents under its UĐ1 visa waiver for tech experts.

What happens next

The ministry plans to submit the draft to the National Assembly for approval at its second session, under a single-session procedure. The text still has to go through the required steps and may change. Until a final resolution is adopted, foreign experts in Vietnam still need their current work permits and visas.