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Vietnam
Individual - Taxes on personal income
Last reviewed - 31 January 2020Tax residents are subject to Vietnamese personal income tax (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 |
* Vietnamese dong
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 |
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