Vietnam

Individual - Sample personal income tax calculation

Last reviewed - 31 January 2020

Expatriate employee tax calculation

Assumptions

The expatriate employee’s annual net income is VND 1.08 billion (VND 90 million per month). No housing is provided by the employer. The expatriate employee has one dependant.

Tax computation

Net monthly income VND 90 million
Personal allowance VND 11 million
Dependant allowance VND 4.4 million

Income received that is net of Vietnam tax is required to be grossed up in accordance with current regulations. Gross monthly taxable income:

= [(Net income - Personal allowance - Dependant allowance) - Quick deduction]/Gross-up ratio

= [(90,000,000 - 11,000,000 - 4,400,000) - 9,850,000]/0.65

= VND 99,615,385

Monthly PIT payable:

Monthly PIT payable (million VND) Tax rate (%) Calculation
Over Not over
0 5 5 5,000,000 x 5% = VND 250,000 (1)
5 10 10 (10,000,000 - 5,000,000) x 10% = 5,000,000 x 10% = VND 500,000 (2)
10 18 15 (18,000,000 - 10,000,000) x 15% = 8,000,000 x 15%= VND 1,200,000 (3)
18 32 20 (32,000,000 - 18,000,000) x 20% = 14,000,000 x 20% = VND 2,800,000 (4)
32 52 25 (52,000,000 - 32,000,000) x 25% = 20,000,000 x 25% = VND 5,000,000 (5)
52 80 30 (80,000,000 - 52,000,000) x 30% = 28,000,000 x 30% = VND 8,400,000 (6)
80 and above 35 (99,615,385 - 80,000,000) x 35% = 19,615,385 x 30% = VND 6,865,385 (7) 

Total monthly PIT payable: (1) + (2) + (3) + (4) + (5) + (6) + (7) = VND 25,015,385

Annual PIT payable: VND 25,015,385x 12 = VND 300,184,620