Social insurance (SI) contributions
Social Insurance (“SI”) contributions are payable by Vietnamese individuals with labour contracts and foreign individuals working in Vietnam, holding a work permit, and employed under a Vietnam labour contract with an indefinite term or a definite term of 1 year or more. Certain foreign employees internally transferred within a group and employees who have reached the statutory retirement age are not subject to compulsory SI contributions.
The SI contribution rates are as below:
|Scheme||Employer rate (%)||Employee rate (%)||Effective date for foreigner|
|Sickness, maternity||3.0||0.0||1 December 2018|
|Occupational diseases and accidents||0.5||0.0||1 December 2018|
|Retirement and death||14.0||8.0||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.
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
Health insurance (“HI”) contributions are required for Vietnamese and foreign individuals that are employed under Vietnam labour contracts for at least three months.
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.
Unemployment insurance (UI) contributions
Unemployment insurance (“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.
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.
The deemed rates for business individuals range from 1% to 5%.
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, 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.