Vietnam

Individual - Taxes on personal income

Last reviewed - 31 January 2020

Tax residents are subject to Vietnamese personal income tax (PIT) on their worldwide taxable income, wherever it is paid or received. Employment income is taxed on a progressive tax rates basis. Non-employment income is taxed at a variety of different rates.

Non-residents are subject to PIT at a flat tax rate on the income received as a result of working in Vietnam/on Vietnam-related income in the tax year, and at various other rates on their non-employment income. However, this will need to be considered in light of the provisions of any double taxation agreement (DTA) that might apply.

Personal income tax rates

Tax residents: Employment income

Annual taxable income (million VND*) Monthly taxable income (million VND) PIT rate (%)
0 to 60 0 to 5 5
60 to 120 5 to 10 10
120 to 216 10 to 18 15
216 to 384 18 to 32 20
384 to 624 32 to 52 25
624 to 960 52 to 80 30
More than 960 More than 80 35

* Vietnamese dong

Tax residents: Non-employment income

Type of taxable income Tax rate (%)
Business income 0.5 to 5 (based on the type of business income)
Interest (but not bank interest)/dividends 5
Sale of shares 0.1 (of sales proceeds)
Capital assignment 20 (on net gain)
Sale of real estate 2 (of sales proceeds)
Income from franchising/royalties 5
Income from inheritances/gifts/winning prizes (excluding income from casino winning prizes) 10

Tax residents: Business income*

Type of taxable income Tax rate (%)
Distribution and supply of goods 0.5
Services, construction without provision of raw materials 2.0
Lease of assets 5.0
Production, transport, services attached to goods, construction including provision of raw materials 1.5
Other business operations 1.0

* Individuals earning business income from VND 100 million per calendar year and below shall not be subject to PIT on their business income.

Tax non-residents

Type of taxable income Tax rate (%)
Employment income 20
Business income 1 to 5 (based on the type of business income)
Interest (but not bank interest)/dividends 5
Sale of shares/capital assignment 0.1 (of sales proceeds)
Sale of real estate 2 (of sales proceeds)
Income from royalties/franchising 5
Income from inheritances/gifts/winning prizes (excluding income from casino winning prizes) 10