Vietnam

Employment income

The definition of taxable employment income is broad and includes all cash remuneration and benefits-in-kind. However, various items are not subject to tax, such as:

• Payments for telephone charges and stationery costs.
• Payments for business trips.
• Overtime/nightshift.
• One-off allowance for relocation (i) from Vietnam for Vietnamese working overseas, (ii) to Vietnam for expatriates working in Vietnam, and (iii) to Vietnam for Vietnamese residing overseas on a long-term basis and returning to Vietnam to work.

Conditions and restrictions are applicable to the above exemptions.

Statutory SI, HI, and UI employer contributions do not constitute a taxable benefit to the employee.

Equity compensation

Share awards and stock options are subject to tax.

The filing requirements of tax on equity compensation are complex, so you are strongly recommended to seek further advice before taking action.

Non-employment income

Taxable non-employment income includes various kinds of income such as:

• Business income (including rental income).
• Investment income (e.g. interest, dividends).
• Gains on sale of shares.
• Gains on sale of real estate.
• Inheritances, Winning prizes/gifts, Income from copyright/franchising/royalties/receiving gifts, 
• Income from the transfer of Vietnamese internet domain names, greenhouse gas emission reduction results, carbon credits, and auctioned vehicle license plates.
• Income from the transfer of digital assets and gold bars.

Non-employment income is taxed separately at rates different from those applicable to employment income (see the Taxes on personal income section).

Exempt income

Non-taxable income includes:

• Interest earned on deposits with credit institutions/banks and on life insurance policies.
• Compensation paid under life/non-life insurance policies.
• Retirement pensions paid under the SI law (or the foreign equivalent).