The Vietnamese tax year is the calendar year. However, where in the calendar year of first arrival, an individual is present in Vietnam for less than 183 days, one's first tax year is the 12-month period from the date of arrival. Subsequently, the tax year is the calendar year.
Individuals who have taxable income are required to obtain a tax code. Those who have taxable employment income must submit the tax registration file to their employer who will subsequently submit this to the local tax office. Those who have other items of taxable income are required to submit their tax registration file to the district tax office of the locality where they reside.
Tax declarations and payment
For employment income, tax has to be declared and paid provisionally on a monthly/quarterly basis by the 20th day of the following month/the 30th day of the month following the reporting quarter, respectively. The amounts paid are reconciled to the total tax liability at the year-end. An annual final tax return must be submitted, and any additional tax must be paid by the last day of the 4th month of the following tax year.
Expatriate employees are also required to carry out a PIT finalisation on termination of their Vietnam assignment upon their permanent departure. Tax refunds are only available to those who have a tax code.
For non-employment income, the individual is required to declare and pay PIT in relation to each type of taxable non-employment income. The PIT regulations require income to be declared and tax to be paid on a receipt basis.