Donating to flood victims, scholarship funds, poor patients — are charitable donations PIT-deductible? Yes, but not every donation qualifies, and not unlimited amounts.
Conditions for deductible donations
Under the PIT Law and Circular 111/2013/TT-BTC, charitable/humanitarian contributions reduce taxable employment income if:
- 1. Right recipient: care facilities for disadvantaged children, the disabled, shelterless elderly; charity funds lawfully established and operating (licensed).
- 2. Valid receipts: collection receipts from the recipient — no receipt = no deduction.
- 3. Cap: not exceeding the year’s taxable employment income (in practice: deduct actual documented spending).
3 commonly mistaken “deductible charity” cases
- Wiring individuals fundraising online: direct gifts to individuals (however genuine) are not deductible — route through lawful organisations/funds.
- Donating via your company: deductible if the company forwards to a lawful organisation and you hold proof (payroll deduction schedule + fund receipt).
- Event sponsorships disguised as charity: sponsorships earning advertising rights are marketing expenses, not charitable contributions.
3-step deduction filing
- 1. Keep receipts at donation time (stamped fund/organisation receipts).
- 2. Declare at annual PIT finalisation (or via the income payer if authorised).
- 3. Reconciliation: tax authorities may verify with recipients — keep details consistent.
FAQs
Corporate donations — CIT-deductible?
Yes — under similar conditions (right recipients, receipts). This article covers individuals; businesses see CIT rules.
In-kind donations (rice, clothes)?
Deductible at converted value certified by the recipient — harder to value than cash, so get receipts stating the value.
Donating to foreign charities?
Only funds/organisations lawfully operating in Vietnam qualify — foreign organisations without Vietnamese standing don’t.
Contact us
FLAT Law Firm advises foreign nationals and their families on inheritance, wills, driving licences, health insurance and money transfers in Vietnam. Contact us for advice on your specific case.