Short answer: For cash red envelopes and wedding money among family and friends — no personal income tax. But the answer flips in two cases: (1) “red envelopes” from a company to its employees — that is salary/wage income and taxable; (2) gifts of registrable assets (real estate, cars, securities…) — the portion exceeding VND 20 million per receipt is taxed at 10%. Three cases, three different treatments.
1. Case 1: civil red envelopes and wedding cash — not taxable
Tet red envelopes from grandparents and parents; wedding envelopes from friends and relatives — purely civil relationships. Under the prevailing interpretation based on PIT Law 109/2025/QH15 (effective 1 July 2026):
- Only gifts that must be registered for ownership or use rights with state authorities are subject to PIT on their value;
- Cash gifts require no registration of ownership/use rights — hence not subject to PIT.
Simply put: cash envelopes for Tet or weddings among relatives, friends and colleagues — no tax obligation, regardless of the amount. This matches the nature of asset gift contracts under the 2015 Civil Code (Articles 457–462): a cash gift is complete when the recipient receives the money, with no registration procedure.
2. Case 2: company red envelopes for staff — taxable income
A completely different situation: the company gives Tet red envelopes or “lucky money” to employees. This sits in the labor relationship between employer and employee.
Under Clause 2, Article 3 of PIT Law 109/2025/QH15, taxable salary/wage income includes “remuneration and monetary or non-monetary benefits in any form.” Company red envelopes — whatever they are called — are in substance employee welfare benefits and count toward taxable salary/wage income.
Practical point for businesses: welfare payments to staff must be tracked and correctly included in PIT finalization. Don’t leave them off the books because “it’s just red-envelope money” — the tax authority looks at substance, not labels.
3. Case 3: gifts of registrable assets — tax on the excess
If the “wedding gift” is not cash but an apartment, land plot, car, or shares — assets requiring ownership/use registration — a different rule applies:
- Under Article 18 (residents) and Article 26 (non-residents) of PIT Law 109/2025/QH15: PIT = the portion exceeding VND 20 million per receipt × 10%;
- The VND 20 million threshold was raised from VND 10 million under the old law — a favorable change for recipients.
Example: parents give their child an apartment worth VND 2 billion (not qualifying for family exemptions under Article 4) — the VND 1.98 billion excess bears VND 198 million in tax. But if the real estate gift is between spouses, parents and children, grandparents and grandchildren, or siblings, it is tax-exempt under Article 4 of Law 109/2025 and Decree 253/2026/ND-CP.
4. Quick comparison
| Situation | Subject to PIT? | Basis |
|---|---|---|
| Cash red envelopes/wedding money between individuals (family, friends) | No | Cash gifts require no ownership/use registration |
| Company Tet bonuses/red envelopes for staff | Yes (as salary income) | Clause 2, Article 3, Law 109/2025 |
| Gifts of houses, land, cars, securities (registrable) | Yes — excess over 20M/receipt × 10% | Articles 18/26, Law 109/2025 |
| Real estate gifts within the family | Exempt | Article 4, Law 109/2025; Decree 253/2026 |
Key legal bases
- PIT Law 109/2025/QH15 (effective 1 July 2026) — Clause 2 Article 3 (salary/wage income); Article 4 (exempt income); Articles 18/26 (tax on inheritances and gifts: excess over VND 20 million/receipt × 10%).
- Decree 253/2026/ND-CP (effective 1 July 2026) — detailed guidance; family real estate exemptions.
- 2015 Civil Code, Articles 457–462 — asset gift contracts.
Frequently asked questions
1. I received 50 wedding envelopes totaling VND 200 million in cash — must I declare it?
No. Cash wedding gifts in civil relationships are not subject to PIT, regardless of the number of envelopes or the total. You do not declare this.
2. My company gives each employee VND 5 million for Tet — must it withhold tax?
This is salary/wage income of the employees and therefore taxable. The company withholds and declares under the salary-income rules — talk to accounting to book it correctly; don’t omit it as “just red-envelope money.”
3. My parents gave me a car worth VND 800 million — how is the tax computed?
Cars require ownership registration, so: (800M − 20M) × 10% = VND 78 million. Check first whether your case qualifies for any exemption before paying.
4. Do spouses pay tax when gifting real estate to each other?
No, for husband-wife transfers. Income from transferring, inheriting or receiving real estate as gifts among family members (spouses; parents–children; grandparents–grandchildren; siblings…) is PIT-exempt under Article 4 of Law 109/2025 and Decree 253/2026/ND-CP.
5. A friend abroad sent wedding money — do I owe tax?
Cash wedding gifts are not subject to PIT wherever the giver lives. But if you receive a large sum from abroad through a bank, the bank may ask about the fund origin under FX rules — keep the invitation/messages as explanation backup if needed.
6. What about high-value physical gifts (watches, designer bags)?
The test remains: must the asset be registered for ownership/use? Watches and bags are not registered, so under the current interpretation they are not subject to PIT. But if the value is extraordinary and masks other income, the tax authority may examine the substance — don’t use “gifts” as cover for declarable income.
Note: this article provides general legal information current at the time of writing (Law 109/2025 effective 1 July 2026) and does not replace advice for your specific case.
This article has been quality-reviewed by the FLAW AI Legal Council
