Vietnam

Overview

Last reviewed - 31 January 2020

Vietnam is located in the centre of Southeast Asia with a land area of 331,689 square kilometres. It is bordered by China to the north, Laos and Cambodia to the west, and the East Sea to the east. Vietnam is in an ideal position for the development of the economy in general, and trade and tourism in particular. Its capital is Ha Noi, and its currency is the dong (VND). Vietnamese is the national and official language of Vietnam.

The modern day history of Vietnam is perhaps best started by reference to the Geneva Accord signed in 1954, which ended French colonial rule following the conquest in 1858 and partitioned the country into two parts. Since 1986, Vietnam has been carrying out economic reforms under the 'Doi Moi' (Renovation) to move from a central planned economy maintained from its reunification in 1975 to a market oriented economy. Since then, Vietnam has recorded important achievements in socio-economic fields and has become one of the fastest-growing economies in the world, with gross domestic product (GDP) projected to expand by 6.8% in 2018. Vietnam joined the World Trade Organization (WTO) in January 2007, following more than a decade-long negotiation process. WTO membership has provided Vietnam an anchor to the global market and reinforced the domestic economic reform process.

PwC Vietnam provides industry-focused assurance, tax, and advisory services to build public trust and enhance value for our clients and stakeholders. PwC Vietnam established offices in Ha Noi and Ho Chi Minh City in 1994. Our team of more than 1,000 Vietnamese and expatriate staff have a thorough understanding of the economy in which they work and a wide knowledge of policies and procedures covering investment, tax, legal, and accounting in Vietnam.

PwC Vietnam maintains strong relationships with key ministries, such as the Ministry of Finance, Ministry of Industry and Trade, Ministry of Planning and Investment, General Department of Taxation, General Department of Customs, etc.

PwC Vietnam is a leading provider of tax and legal services in Vietnam. The tax and legal services team of PwC Vietnam has over 180 expatriate and Vietnamese professionals operating from the two major cities in Vietnam, Ha Noi and Ho Chi Minh City. We provide a full range of services to our clients, including advice and compliance services, customs, transfer pricing, due diligence, and legal services.

Maintaining a separate law firm licensed by Vietnam’s Ministry of Justice enables us to offer comprehensive legal and advisory services.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

20

Corporate income tax (CIT) due dates
CIT return due date

For CIT finalisation, the due date is the 90th day of the following financial year.

CIT final payment due date

The same as the deadline for submission of the final CIT return (i.e. the 90th day of the following financial year).

CIT estimated payment due dates

Quarterly payments must be made no later than the 30th day of the next quarter.

Personal income tax (PIT) rates
Headline PIT rate (%)

Resident: Progressive rates up to 35% for employment income;

Non-resident: A flat tax rate of 20% for employment income;

See Vietnam's individual tax summary for rates for non-employment income.

Personal income tax (PIT) due dates
PIT return due date

For employment income, tax has to be declared provisionally on a monthly or quarterly basis by the 20th day of the following month or by the 30th day of the month following the reporting quarter, respectively.

An annual final tax return must be submitted within 90 days of the tax year end. Expatriates are required to carry out a personal income tax finalisation on termination of Vietnam assignment.

PIT final payment due date

The deadline for tax payment is the same as the deadline of submission of the annual final tax return.

PIT estimated payment due dates

The deadline of provisional monthly or quarterly tax payments are the same with the deadline of submission of the monthly or quarterly tax return.

Value-added tax (VAT) rates
Standard VAT rate (%)

10

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

WHT applies to certain payments made to foreign organisations and individuals undertaking business or earning income sourced from Vietnam, regardless of the residency status.

WHT rates are nil for dividends. For interest and royalties, please refer to Vietnam's Corporate summary.

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

Capital gains are subject to the normal CIT rate (i.e. 20%).

Individual capital gains tax rate (%)

See Vietnam's individual tax summary for capital gain rates for tax residents and non residents.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

10

Gift tax rate (%)

10

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.