Parents back home wire money for a house down payment, tuition or a startup in Vietnam — are parental cash gifts taxed? Unlike gifting real estate (see EXP-0492), gifting cash is far simpler: no PIT — but do it right so the money stays “clean”.
Why cash gifts aren’t taxed
- PIT on gifts applies only to 4 asset categories: securities, capital stakes, real estate, registrable assets (PIT Law, Circular 111/2013/TT-BTC).
- Cash, foreign currency, gold fall outside → no PIT however large, whoever the giver.
- New threshold note: from 1/7/2026 (2025 PIT Law), even the 4 taxable categories ignore value under VND 20M/receipt.
3 things to do receiving large parental gifts
- 1. Bank transfer with clear purpose: “parental gift to child” — a clean money trail, not mistaken for business income if tax authorities ask.
- 2. Keep a gift letter: notarisation isn’t required for cash, but a signed gift letter (with both IDs) proves source of funds for house/car purchases or bank source-of-funds checks (AML).
- 3. Money from abroad: overseas parents’ wires arrive as remittances — no PIT; keep the international transfer slips.
When “gifts” become taxable income
- Company “gifts” to staff: that’s employment income — PIT under progressive rates, not gifts.
- “Gifts” tied to service contracts: disguised work payments — tax authorities may reclassify as business/fee income.
- Loans “forgiven” as gifts: with interest charged, the interest is capital-investment income (5% rate).
FAQs
Parents give VND 3B for a house — will the bank ask?
Possibly — large transactions trigger bank AML duties. A gift letter + transfer slips from the parents’ account suffice.
Gifting sons/daughters-in-law — different?
Tax-wise no — cash is cash. (For real estate, in-laws remain PIT- and fee-exempt.)
Foreign parents gifting money to children in Vietnam?
Tax: same (untaxed). Procedure: inbound via banks; for large sums, prepare a gift letter (notarised translation if needed).
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.
