Vietnam

An individual is a Vietnamese tax resident if they reside in Vietnam for 183 days or more within either the calendar year or a 12-month period counted from their date of arrival, or if they maintain a permanent residence in Vietnam, including a registered residence or a rented house under a definite lease term. Anyone not meeting these conditions is a tax non-resident.

The Vietnamese tax year is the calendar year, except that an individual's first tax year, when present in Vietnam for less than 183 days during their calendar year of arrival, is instead the 12-month period from their date of arrival. Employment income tax is declared and paid provisionally each month or quarter, then reconciled in an annual final return due by the last day of the third month of the following tax year for employer-filed returns, or the fourth month for individual-filed returns.

Non-residents are taxed at a flat 20% on income from employment in Vietnam or otherwise Vietnam-related. Their other income is taxed at various separate rates depending on the type, including 0.1% of proceeds on the sale of shares or digital assets, 2% of proceeds on the sale of real estate, and 5% on interest (other than bank interest), dividends, and royalties, subject to any applicable double taxation agreement.

Vietnam grants tax residents an automatic personal allowance and an additional dependant allowance for each registered qualifying dependant. Deductible items also include mandatory social, health, and unemployment insurance contributions, capped voluntary local pension contributions, mandatory overseas social and health insurance contributions, and donations to approved charities.

Vietnam applies no VAT registration threshold: businesses producing, trading, or importing taxable goods and services are liable for VAT regardless of turnover. Returns are generally filed and paid monthly by the 20th of the following month, though businesses whose prior-year revenue was VND 50 billion or less may file quarterly instead.

Goods and services of household and individual production and business establishments with annual revenue of VND 500 million or less are not subject to VAT, effective 1 January 2026 under Law No. 149/2025/QH15, which raised the threshold from VND 200 million.

Exports of goods and services, and international transportation, are taxable at 0%. Exempt supplies include raw agricultural products and livestock, land-use rights, credit and financial services, life insurance and reinsurance, health and veterinary services, education and vocational training, and public transportation by bus and electric car.

Vietnam exempts from personal income tax the transfer of fund certificates of open-ended funds established under the securities laws when held for at least two years from the date of purchase, a carve-out from the flat 0.1% tax otherwise applied to proceeds from securities transfers, including shares.