Tax residents are subject to Vietnamese (PIT) on their worldwide taxable income, wherever it is paid or received. Employment income is taxed on a progressive tax rates basis. Non-employment income is taxed at a variety of different rates.
Non-residents are subject to PIT at a flat tax rate on the income received as a result of working in Vietnam/on Vietnam-related income in the tax year, and at various other rates on their non-employment income. However, this will need to be considered in light of the provisions of any double taxation agreement (DTA) that might apply.
Personal income tax rates
Tax residents: Employment income
| Annual taxable income (million VND) |
Monthly taxable income (million VND) |
PIT rate (%) |
| 0 to 60 |
0 to 5 |
5 |
| 60 to 120 |
5 to 10 |
10 |
| 120 to 216 |
10 to 18 |
15 |
| 216 to 384 |
18 to 32 |
20 |
| 384 to 624 |
32 to 52 |
25 |
| 624 to 960 |
52 to 80 |
30 |
| More than 960 |
More than 80 |
35 |
Tax residents: Non-employment income
| Type of taxable income |
Tax rate (%) |
| Business income |
0.5 to 5 (based on the type of business income) |
| Interest (but not bank interest)/dividends |
5 |
| Sale of shares |
0.1 (of sales proceeds) |
| Capital assignment |
20 (on net gain) |
| Sale of real estate |
2 (of sales proceeds) |
| Income from franchising/royalties |
5 |
| Income from inheritances/gifts/winning prizes (excluding income from casino winning prizes) |
10 |
Tax residents: Business income*
| Type of taxable income |
Tax rate (%) |
| Distribution and supply of goods |
0.5 |
| Services, construction without provision of raw materials |
2.0 |
| Lease of assets |
5.0 |
| Production, transport, services attached to goods, construction including provision of raw materials |
1.5 |
| Other business operations |
1.0 |
* Individuals earning business income from VND 100 million per calendar year and below shall not be subject to PIT on their business income.
Tax non-residents
| Type of taxable income |
Tax rate (%) |
| Employment income |
20 |
| Business income |
1 to 5 (based on the type of business income) |
| Interest (but not bank interest)/dividends |
5 |
| Sale of shares/capital assignment |
0.1 (of sales proceeds) |
| Sale of real estate |
2 (of sales proceeds) |
| Income from royalties/franchising |
5 |
| Income from inheritances/gifts/winning prizes (excluding income from casino winning prizes) |
10 |
