Vietnam

Social insurance (SI) contributions

Currently, social insurance ("SI") contributions are payable by Vietnamese individuals with labour contracts and foreign individuals working in Vietnam holding a work permit and employed under a Vietnam labour contract with an indefinite term or a definite term of one year or more. Under the new Law on Social Insurance 2024, which is effective from 1st July 2025, any foreign individual working in Vietnam under a labour contract with a term of 1 year or more is subject to SI contributions, regardless of work permit issuance or exemption. 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.

The SI contribution rates are as below:

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

Companies operating in industries with high risk of occupational diseases and accidents, meeting certain conditions, can apply for a lower employer’s contribution rate for occupational diseases and accidents of 0.3% instead of the current regulated rate of 0.5% on salary subject to SI contribution (including both Vietnamese and foreign employees).

Health insurance (HI) contributions

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

HI contribution rates are 4.5% of the income subject to HI contribution, with 3% contributed by the employer and 1.5% by the employee.

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

Unemployment insurance (UI) contributions

UI contributions are applicable to Vietnamese individuals only.

The employer and employee contributions are 1% each on the income subject to UI contribution.

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

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 June 2025 for certain goods and services subject to standard VAT rate

On 26 November 2024, the National Assembly approved a new VAT Law No. 48/2024/QH15 which takes effect from 1 July 2025, which stipulates that the VAT rate applicable to services provided by foreign suppliers without permanent establishments in Vietnam to organizations and individuals in Vietnam via e-commerce and digital-based platforms will be changed from 5% to 10%.

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 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.