Verified Facts
Tax rates in Vietnam range from 5% to 35% for personal income tax, with a corporate tax rate of 20%, and a standard VAT rate of 10%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Vietnam operates a territorial taxation system, where tax is levied on income derived from sources within Vietnam, regardless of the taxpayer's residency status. However, residents are also subject to tax on their worldwide income, with credits available for taxes paid overseas. Residency for tax purposes is determined by the number of days spent in Vietnam, with individuals who stay for 183 days or more in a calendar year considered tax residents.
The tax system in Vietnam is overseen by the General Department of Taxation, which is responsible for collecting taxes, enforcing tax laws, and providing guidance to taxpayers. The tax year in Vietnam runs from January to December, and taxpayers are required to file their tax returns by the end of May of the following year. Vietnam has a well-established tax treaty network, with agreements in place to prevent double taxation and fiscal evasion with over 80 countries.
Personal Income Tax
| Income Bracket (VND) | Tax Rate |
|---|---|
| 0 - 5,000,000 | 5% |
| 5,000,001 - 10,000,000 | 10% |
| 10,000,001 - 18,000,000 | 15% |
| 18,000,001 - 32,000,000 | 20% |
| 32,000,001 - 52,000,000 | 25% |
| 52,000,001 and above | 35% |
| Taxpayers in Vietnam are entitled to various deductions and allowances, including a personal allowance of VND 11 million per month, as well as deductions for health insurance, life insurance, and charitable donations. Tax returns must be filed electronically, and payment can be made online or at a local tax office. Taxpayers who fail to file their returns on time may be subject to penalties and fines. |
Corporate & Business Tax
- The standard corporate tax rate in Vietnam is 20%, although this may be reduced to 17% for certain industries, such as high-tech manufacturing, or to 10% for businesses operating in economic zones.
- Small businesses with annual turnover of VND 50 billion or less may be eligible for a reduced tax rate of 17%.
- Free zones and export processing zones offer a range of incentives, including tax exemptions and reduced land rental fees.
- Businesses must register with the local tax authority within 30 days of commencing operations, and must obtain a tax identification number.
- Companies must also comply with value-added tax regulations, and may be required to pay withholding tax on dividends, interest, and royalties paid to non-residents.
VAT / Sales Tax
- The standard VAT rate in Vietnam is 10%, although a reduced rate of 5% applies to certain essential goods, such as food, healthcare, and education services.
- A zero rate applies to exports, and to certain services, such as international transportation and tourism.
- Exemptions from VAT are available for certain goods and services, including financial services, insurance, and real estate.
- Tourist refund schemes are available for international visitors, allowing them to claim a refund of VAT paid on certain goods and services.
For Expats & Foreign Workers
- Tax residency rules in Vietnam are based on the number of days spent in the country, with individuals who stay for 183 days or more in a calendar year considered tax residents.
- Vietnam has a network of double taxation treaties with over 80 countries, which can help to prevent double taxation and fiscal evasion.
- Social security contributions are mandatory for both employees and employers, and are used to fund pension, sickness, and unemployment benefits.
- Remittance rules in Vietnam require taxpayers to declare and pay tax on income earned overseas, although credits are available for taxes paid in other countries.
- Expats and foreign workers may be eligible for a tax exemption on certain types of income, such as foreign-sourced income, although this will depend on the specific terms of their employment contract and the applicable tax laws.
- Foreign workers may also be required to obtain a work permit and register with the local tax authority.
Crypto & Investment Income
- Investment income, including dividends, interest, and rental income, is subject to tax in Vietnam, although the tax rate will depend on the type of income and the taxpayer's residency status.
- Cryptocurrency is subject to tax in Vietnam, although the tax treatment will depend on the specific type of cryptocurrency and the purpose for which it is held.
- Capital gains tax is imposed on the sale of securities, including shares and bonds, although the tax rate is generally lower than the standard income tax rate.
- Taxpayers who earn income from overseas investments may be required to declare and pay tax on this income in Vietnam, although credits are available for taxes paid in other countries.