Tax & obligations in Vietnam

Moving to Vietnam is exciting — but understanding your tax and legal obligations is essential for living and working here smoothly. Whether you're an expat employee, digital nomad, investor, or long-term resident, this guide explains what you need to know about taxes and basic financial responsibilities in Vietnam.

Important notice: The information below is for reference only and reflects Vietnamese regulations as of 2024. Laws and policies may change. Please consult official authorities or a professional advisor for the latest updates.

1. Who has to pay tax in Vietnam?

Vietnam applies personal income tax (PIT) based on your residency status.

Tax residents

You are considered a tax resident if:

• You stay in Vietnam for 183 days or more within a calendar year or 12 consecutive months
• You have a registered permanent or temporary residence in Vietnam

Tax residents are taxed on worldwide income.

Non-residents

If you stay fewer than 183 days and do not qualify as a resident:

• You are taxed only on Vietnam-sourced income
• A flat tax rate applies (typically 20%)

2. Personal income tax rates

2.1. For tax residents (progressive rates)

Vietnam uses a progressive tax system:

Taxable income = Gross income − deductions − social insurance contributions.

2.2. For non-residents

• Flat 20% on Vietnam-sourced employment income
• No progressive calculation
• No family deductions

3. Tax deductions and allowances

Tax residents may claim:

• Personal deduction (monthly standard deduction)
• Dependent deduction (for children, spouse, parents meeting criteria)
• Social insurance contributions
• Certain charitable donations

Employers usually calculate and withhold PIT monthly on your behalf.

4. Social insurance contributions

If you are employed under a Vietnamese labor contract:

Mandatory contributions may include:

• Social insurance
• Health insurance
• Unemployment insurance

Foreign employees working long-term may also be subject to social insurance contributions, depending on contract type and exemption agreements.

Freelancers and business owners must manage their own contributions.

5. Business and freelance tax

If you:

• Run a company
• Operate a household business
• Work independently or as a consultant

You may be subject to:

• Value-added tax (VAT)
• Personal income tax on business income
• Corporate income tax (for registered companies)

Vietnam offers simplified tax regimes for small businesses and household enterprises.

6. Tax identification number (TIN)

If you earn taxable income in Vietnam, you must have a Tax Identification Number (TIN).

• Employers typically register it for employees.
• Self-employed individuals must apply directly.
• A TIN is required for tax filing, refunds, and dependent registration.

7. Annual tax finalization

At the end of the tax year:

• Employers often finalize tax for employees.
• If you have multiple income sources, you may need to file directly.
• Refunds can be claimed if you overpaid.

The Vietnamese tax year follows the calendar year (January 1 – December 31).

8. Double taxation agreements (DTA)

Vietnam has signed double taxation agreements with many countries.

This may help you:

• Avoid paying tax twice on the same income
• Claim tax credits
• Reduce withholding tax

You may need documentation from your home country to apply DTA benefits.

9. Other common obligations

Beyond income tax, you may encounter:

• VAT on goods and services (usually 10%)
• Property registration fees
• Motorbike or car registration tax
• Business license fees
• Environmental taxes (fuel, certain products)

Most consumer taxes are included in the displayed price.

10. Practical tips for newcomers

• Keep copies of contracts and payslips
• Confirm whether your salary is gross or net
• Register dependents early to optimize tax deductions
• Track your days in Vietnam to determine residency
• Consult a local tax advisor if you have multiple income sources

Vietnam’s tax system is relatively structured, but paperwork and local procedures can vary.

Final thoughts

Understanding tax and legal obligations helps you avoid penalties and manage your finances efficiently in Vietnam. For most employees, employers handle the majority of tax compliance. However, freelancers, investors, and business owners should pay close attention to registration and filing requirements.

Vietnam remains tax-competitive compared to many countries — especially for entrepreneurs and skilled professionals — but proper planning is key.