Personal tax rates on other income in Vietnam

  Personal income tax is your income through business, salary, wages, inheritance, interest or dividends… Vietnam’s personal income tax rate is calculated based on the type of residence.

 GTax has presented in previous articles about Personal Income Tax Rates in Vietnam, you can read them again, besides, for the incomes below there will be specific tax rates.

Personal Tax Rates on Other Income

Type of Taxable income Tax Resident (%) Non-Tax Resident (%)

Capital Transfers

20%

(of the net gain)

0.1%

(of sales proceeds)

Income from inheritances/gifts/winning prizes (excluding income from casino winning prizes)

10%

10%

Income from royalties/franchising/copy rights

5%

5%

Interest (but not bank interest)/dividends

5%

5%

Business income

0,5 to 5%

(based on the type of business income)

1 to 5%

(based on the type of business income)

Sale of real estate

2 %

(of sales proceeds)

2 %

(of sales proceeds)

Sale of shares/capital assignment

0.1%

(of sales proceeds)

0.1%

(of sales proceeds)

 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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* Details of Personal Income Tax of foreigners in Vietnam

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

1. Vietnamese resident

A resident is an individual who meets one of the following criteria:

  • Reside in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the date of arrival.
  • Have permanent residence in Vietnam (including the place of household registration recorded on the permanent/temporary residence card or rent a house in Vietnam with a rental term of 183 days or more in the tax year for foreigners) and cannot prove tax residency in another country.

2. 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. 

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.

How can we help you?

   Many foreigners face the complexity and inconsistency of tax policy in Vietnam. Especially related to personal income tax policy.

   This may be due to not filing on time, preparing personal income tax finalization documents in an amateurish manner, or misunderstanding tax rate policy.

   GTax understands the basic needs of each business as well as the complexities related to tax policy. With a team of skilled experts and extensive industry experience in each department, GTax will help you solve any obstacles you may encounter, thereby providing the best service experience.

Compiled by GTax

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