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, practicing certificate, or licence and having labour contracts with indefinite terms or term labour contracts with Vietnamese employers of one full year and above.
The level of compulsory SI contribution for a Vietnamese employee is 25.5% of the income subject to SI contribution, of which 17.5% is the employers’ obligation and the remaining 8% is the employees’ obligation.
Currently, the SI contribution for foreign employees is 3.5% of the income subject to SI contribution (employer’s contribution), in order to cover the sickness and maternity leave fund and occupational diseases and accident fund. The employer’s contribution for retirement and death fund is not required until 1 January 2022. The employees’ obligation is also not required until January 2022.
The SI/HI contribution rates for foreigners are as below:
|Scheme||Employer||Employee||Effective date for foreigner|
|- Sickness, maternity||3%||1 December 2018|
|- Occupational diseases and accident||0.5%||1 December 2018|
|+ Retirement and death||14%||8%||1 January 2022|
The salary subject to SI contribution includes salary, certain allowances, and other regular payment stated in the labour contract, but is capped at 20 times the basic salary.
Health insurance (HI) contributions
Compulsory HI contributions are applicable to both Vietnamese individuals and expatriates, except those transferred from their mother companies abroad to subsidiary firms in Vietnam (i.e. assignees). 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.
Salary/wage subject to HI contribution is also capped at 20 times the basic salary.
Unemployment insurance (UI) contributions
Compulsory UI contributions are applicable to Vietnamese individuals only. Expatriates are exempt. The employer and employee contributions are 1% on the income subject to UI contribution. Salary/wage subject to UI contribution is capped at 20 times the minimum regional salaries.
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, airplanes, 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.