Social insurance (SI) contributions
Prior to 1 December 2018, compulsory SI contributions were applicable to Vietnamese individuals only. Effective from 1 December 2018, SI contributions are also applicable to foreign individuals working in Vietnam under a work permit, practising certificate, or licence and having labour contracts with an indefinite term or a definite term of one year or more.
The SI contribution rates are as below:
|Scheme||Employer||Employee||Effective date for foreigner|
|Sickness, maternity||3%||1 December 2018|
|Occupational diseases and accidents||0.5%||1 December 2018|
|Retirement and death||14%||8%||1 January 2022|
Income subject to SI contribution includes salary, certain allowances, and other regular payments, but this is capped at 20 times the basic salary for SI contributions. Effective from 1 July 2019, the minimum salary is VND 1,490,000 per month. The basic salary is subject to change each year.
Companies operating in industries with high risk of occupational diseases and accidents, meeting certain conditions, can apply for a lower employer’s contribution rate for occupational diseases and accidents of 0.3% instead of the current regulated rate of 0.5% on salary subject to SI contribution (including both Vietnamese and foreign employees).
Health insurance (HI) contributions
Compulsory HI contributions are applicable to both Vietnamese and foreign individuals that are employed under Vietnam labour contracts. HI contribution rates are 4.5% of the income subject to HI contribution, with 3% contributed by the employer and 1.5% by the employee.
Income subject to HI contribution includes salary, certain allowances, and other regular payments, but this is capped at 20 times the basic salary for HI contributions. Effective from 1 July 2019, the basic salary is VND 1,490,000 per month. The basic salary is subject to change each year (except for 2020).
Unemployment insurance (UI) contributions
Compulsory UI contributions are applicable to Vietnamese individuals only. The employer and employee contributions are 1% each on the income subject to UI contribution.
Income subject to UI contribution includes salary, certain allowances, and other regular payments, but this is capped at 20 times the minimum regional salaries for UI contributions. Effective from 1 January 2020, the minimum regional salaries vary from VND 3,070,000 to VND 4,420,000 per month. The minimum regional salaries are subject to change each year.
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.
Net wealth/worth taxes
There are no net wealth/worth taxes in Vietnam.
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, aeroplanes, 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.