Personal income tax (PIT) rate in Vietnam


   Like every other country, personal income tax in Vietnam for foreigners has specific policies and tax rates. Personal income tax is the portion of your income through business, wages, salaries, inheritance, interest or dividends that will be given to the government.

   The personal income tax rate in Vietnam for foreigners depends only on income, amount earned and time of income. However, both residents and non-residents may be required to pay income tax, it’s just that the rates will be different.

   In this content, GTax will provide you with information related to the personal income tax rate of foreigners in Vietnam.

Who must pay Personal Income Tax (PIT) in Vietnam?

  • Vietnamese resident

   Foreign workers will be considered resident if you are present in Vietnam for at least 183 days in a calendar year or for 12 consecutive months from the first day of presence in Vietnam (date of arrival and date of departure). is considered 01 day).
Arrival and departure dates depend on the confirmation of the immigration authority on the passport (or laissez-passers) when the person enters and leaves Vietnam.

   If you have a permanent residence registered under the Law on residence of Vietnam or you have a rented house to live in Vietnam with a rental contract with a term of 183 days or more in the tax year, you are also considered a resident.

   If you stay in Vietnam for more than 90 days but less than 183 days in a tax year or you can prove that you are a tax resident of another country for 12 consecutive months from the date of arrival in Vietnam, you will be treated as a tax resident of another country for 12 consecutive months from the date of arrival in Vietnam. Treated as a non-resident in Vietnam for tax purposes.

  • Non-Vietnamese resident

You are considered a non-resident taxpayer when you have an active tangible income service in Vietnam, but you do not meet the definition of being a resident above. You qualify for personal income tax rates but as a non-resident. If you also represent a branch of a foreign corporation or organization and have not exceeded the number of days of speculation, you are a non-resident member.

Vietnam Personal Income Tax (PIT) rates

   Vietnam personal income tax rates are calculated based on your type of residence. Residents are taxed according to the amount incurred in most areas; they can gain personal income. In contrast, Non-Resident income tax is based on a flat percentage only but excludes certain types of income generation.

The following is the Personal Income Tax rate table in Vietnam:

  • Applies to resident taxpayers:
Monthly Taxable Income (VND) Monthly Taxable Income (USD) Tax Resident PIT Rates

0 - 5,000,000

Up to 208

5%

5,000,001 - 10,000,000

Over 208 to 415

10%

10,000,001 - 18,000,000

Over 415 to 747

15%

18,000,001 - 32,000,000

Over 747 to 1,328

20%

32,000,001 - 52,000,000

Over 1,328 to 2,158

25%

52,000,001 - 80,000,000

Over 2,158 to 3,318

30%

 Over 80,000,000

Over  3,318

35%
  • Applies to Non-resident taxpayers:  are subject to PIT at a flat rate of 20% on their Vietnam-sourced income.

Special conditions for Vietnam personal income tax rates

Consider the following notes when calculating personal income tax in Vietnam:

  • Income generated through copyrights, franchise investments, and capital investments is considered different from other types of income. Vietnam has a personal income tax rate of 5% for these residents.
  • Income that residents receive from foreign sources is also taxed in Vietnam.
  • Tax rates depend on the double taxation policy relating to the foreign country and the nature of the investment.
  • Scholarships, remittances from overseas businesses, real estate transfers between family members and other non-taxable income are not taxed.

Note: Currently, Vietnam’s Tax Authority is not interested in the personal income tax policy of the country hosting foreign investors. They deduct a portion of the rate stated in their laws and investors deal with the double taxation processes themselves.

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How to pay income tax for foreigners in Vietnam

   Individuals and organizations subject to personal income tax must register with tax authorities to obtain a tax identification number .   

   You are to be held accountable to declare your income tax at the end of a tax year before the deadline assigned for each tax payment. If you are an individual, you can proceed to sort out your taxes yourself. In cases of Foreign-Investment Enterprises , there will be a need to conduct a personal income tax calculation for each of your employees by the enterprise.

  After this, you will gather the combined tax in PIT Finalization files, which will contain an annual income summary and the personal income tax letter. Then, they can pay either in cash or via bank transfer to the State Treasury.

Compiled by GTax

Personal Income Tax in Vietnam

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November 7, 2023

With the content of this article, GTax will provide you with an overview of Vietnam’s Personal Income Tax policy. Because personal income tax (PIT) policy frequently changes, currently (2023) what

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