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Vietnam

Financial Year – 1 January – 31 December
Currency – Vietnam Dong (VND)

Corporate Tax Summary

Residence – A company is resident in Vietnam if it is incorporated in Vietnam, if not incorporated in Vietnam, it carries on business in Vietnam.

Basis of Taxation – Companies are taxed on income incurred in Vietnam. Taxable income is calculated as Revenue minus deductible expenses add other incomes

Reference
Corporate Income Tax Rate (%) 20%
Branch Tax Rate (%) N/A
Withholding Tax Rate:
Dividends – Franked 5%
Dividends – Unfranked 20%
Dividends – Conduit Foreign Income N/A
Interest 5% In general, this is a final withholding tax that is imposed on payments to non-residents only.
Royalties from Intellectual Property 10%
Fund Payments from Managed Investment Trusts N/A
Branch Remittance Tax N/A
Net Operating Losses (Years)
Carry back Carry-back of losses is not permitted.
Carry forward Losses maybe carried forward fully and consecutively for a five years.

Individual Tax Summary

Residence – For tax purposes, an individual is a resident if a person meets one of the conditions below:

a) He/she has been present in Vietnam for at least 183 days in a calendar year or for 12 consecutive months from the first day of his/her presence in Vietnam (the date of arrival and date of departure are considered 01 day). The date of arrival and date of departure depends on the certification of the immigration agency on the passport (or laissez-passers) when that person enters and leaves Vietnam. If the person enters and leaves Vietnam within one day, it will be considered a day of residence.
A person in Vietnam defined in this Point is the presence of that person in Vietnam’s territory.

b) He/she has a regular residence in Vietnam in one of the following cases:

b.1) He/she has a regular residence according to regulations of law on residence:

b.1.1) For Vietnamese citizens: a place where that person regularly, stably and indefinitely lives and has been registered as a permanent residence as prescribed by regulations of law on residence.

b.1.2) For foreigners: the permanent residence written in the permanent residence card or the temporary residence when applying for the temporary residence card issued by a competent authority affiliated to the Ministry of Public Security.

b.2) He/she rents a house in Vietnam according to regulations of law on housing under a contract that has a term of at least 183 days in the tax year. To be specific:

b.2.1) A person who has no regular residence defined in Point b.1 Clause 1 of this. Article will be considered a resident if he/she has a total house lease period of at least 183 days in the tax year under various lease contracts, even if a he/she rents houses in different locations.

b.2.2) The rented houses can be hotels, guesthouses, motels, offices, etc. whether they are rented by the person or their employer. If the person has a regular residence in Vietnam according to this Clause but his/her actual presence in Vietnam is shorter than 183 days in the tax year and he/she fails to prove his or her residence in any country, that person will be considered a resident of Vietnam. The residency in another country shall be proved by the Certificate of residence. If the person is a citizen of a country or territory that has signed a tax agreement with Vietnam and does not issue the Certificate of residence, that person shall present a photocopy of the passport to prove the period of residence.

A non-resident is a person who fails to meet any of the conditions specified above.

Basis of Taxation – Resident taxpayers are generally taxed on worldwide income, using progressive tax table Non-resident taxpayers are taxed on income incurred in Vietnam, tax rate is 20%

Filing Status – Each taxpayer must file a separate return each financial year

Personal Income Tax Rates

Taxable Income Tax Payable – Residents Tax Payable – Non Residents
Upto 5 Nil + 5 applied for non – residents regardless of level of taxable income
5mil – 10mil 0.25mil + 10%
10mil – 18mil 0.75mil + 15%
18mil – 32 mil 1.95mil + 20%
32mil – 52mil 4.75mil + 25%
52mil – 80mil 9.75mil + 30%
Above 80mil 18.15mil + 35%

Goods and Services Tax (GST)

Rate 10/0%
Taxable Transactions The GST is a transaction bassed, value added tax on the inputs and outputs of an organisation’s business activities.
Registration An entity that carries on an enterprise must register for GST except individuals doing trade do not have to register for their businesses: Street trading, Petty trading, Petty-food trading, The consignment trading, Providing services, Movable business,…
Filing and Payment Each GST registered entity must account for its GST obligations on a Business activity statement for each tax period
The VAT taxpayers that earn total revenue of VND 50 billion or less from the sale of goods and/or services in the preceding year shall be eligible to declare VAT quarterly.
The taxpayer that has just begun his business shall declare VAT quarterly. In the next calendar year after 12 months of business, VAT declarations shall be declared whether monthly or quarterly depending on the revenue from the sale of goods and/or services in the preceding calendar year (12 months).

Other Taxes Payable

Tax Reference
Payroll Tax Taxable income (per month) (mil VND) Tax payable – Residents (mil VND) Tax Payable – Non residents
Upto 5 Nil + 5%
5 – 10 0.25 + 10%
10 – 18 0.75 + 15%
18 – 32 1.95 + 20% 20%
32 – 52 4.75 + 25%
52 – 80 9.75 + 30%
Above 80 18.15 + 35%
Payroll Tax The states and terriorities impose stamp duty at rates of up to 10% on the transfer of real property ad some other business property
Rates vary depending on the class of business property transferred
Land Tax 0.5% applied to transfer of land

Last updated: 10.06.2020