Vietnam

Social insurance (SI) contributions

Currently, SI contributions are payable by Vietnamese individuals with labour contracts of at least one month and foreign individuals working in Vietnam holding a work permit and employed under a Vietnam labour contract of at least one year. Certain foreign employees internally transferred within a group who have reached the statutory retirement age, or as stipulated under an international treaty, are not subject to compulsory SI contributions.

Income subject to SI contributions includes salary, certain allowances, and other regular payments, but this is capped at 20 times the reference level.

Health insurance (HI) contributions

HI contributions are required for Vietnamese and foreign individuals that are employed under Vietnam labour contracts for at least one month.

Income subject to HI contribution includes salary, certain allowances, and other regular payments, but this is capped at 20 times the reference level.

Unemployment insurance (UI) contributions

Unemployment insurance (“UI”) contributions are applicable to Vietnamese individuals only.

Income subject to UI contribution includes salary, certain allowances, and other regular payments, but this is capped at 20 times the minimum regional salaries.

The contribution rates are as below:

Consumption taxes

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. 

There is a 2% VAT reduction up to December 2026 for certain goods and services subject to standard VAT rate

The deemed rates for business individuals range from 1% to 5%.

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, automobiles having less than 24 seats, motorcycles, aeroplanes, boats, petroleum, air-conditioners from 24,000 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.