Social insurance (SI) contributions
Mandatory SI contributions are applicable to Vietnamese individuals only. Expatriates are currently exempt and will be allowed to participate in the scheme from 1 January 2018 onward. The level of compulsory SI contribution is reduced from 1 June 2017 from 26% to 25.5% of total salary, of which 18% (before 1 June 2017) or 17.5% (after 1 June 2017) is the employers’ obligation and the remaining 8% is the employees’ obligation. The salary subject to SI contribution is the salary stated in the labour contract, but is capped at 20 times the minimum basic salary.
Health insurance (HI) contributions
Mandatory HI contributions are applicable to both Vietnamese individuals and expatriates, except those who are employed under Vietnam home office labour contracts. HI contribution rates are 4.5% of total salary, with 3% contributed by the employer and 1.5% by the employee.
Salary/wage subject to HI contribution is capped at 20 times the minimum basic salary for HI contributions.
Unemployment insurance (UI) contributions
Mandatory UI contributions are applicable to Vietnamese individuals only. Expatriates are exempt. The employer and employee contributions are 1% on gross salary each. The employee contribution is capped at 20 times the minimum regional salary for UI contributions.
Value-added tax (VAT)
VAT is applied to goods and services used for production, trading, and consumption in Vietnam (including goods and services purchased from abroad), with certain exemptions. The 10% 'standard' rate applies to activities not specified as exempt or subject to the reduced 0% or 5% rate. See Other taxes in the Corporate tax summary for more information.
Inheritance, estate, and gift taxes
See the Income determination section for a description of the taxation of inheritances and gifts.
Luxury and excise taxes
Special sales tax (SST) is a form of excise tax that applies to selected goods and services, such as alcohol, imported automobiles having less than 24 seats, motorcycles, airplanes, boats, petroleum, air-conditioners up to 90,000 British thermal units (BTU), cigarettes, playing cards, discotheques, massages, karaoke, casinos, gambling, golf clubs, and entertainment with betting and lotteries. See Other taxes in the Corporate tax summary for SST rates.