Taxes in Vietnam
Vietnam's tax system underwent significant reforms effective 2026, with implications for expats and remote workers.
Tax Residency
You're a Vietnamese tax resident if you:
- Stay 183+ days in a calendar year, OR
- Stay 183+ days in any 12 consecutive months from first arrival, OR
- Have a permanent residence in Vietnam
Tax residents: Taxed on worldwide income
Non-residents: Taxed only on Vietnamese-source income
2026 PIT Reform Changes
Effective January 1, 2026 (some provisions July 1, 2026):
- Progressive brackets reduced from 7 to 5
- Top 35% rate applies above VND 100M/month (previously VND 80M)
- Family deduction increased to VND 15.5M/month for taxpayer
- Dependent deduction increased to VND 6.2M/month per dependent
Tax Rates
Residents (Employment Income):
| Monthly Income (VND) | Rate |
|---|---|
| Up to 5,000,000 | 5% |
| 5,000,001 - 10,000,000 | 10% |
| 10,000,001 - 18,000,000 | 15% |
| 18,000,001 - 32,000,000 | 20% |
| 32,000,001 - 52,000,000 | 25% |
| 52,000,001 - 80,000,000 | 30% |
| Above 80,000,000 | 35% |
Non-Residents: Flat 20% on Vietnamese-source income
Tax-Exempt Benefits for Expats
Foreign employees may be exempt from tax on:
- One-off relocation allowance to Vietnam
- Annual round-trip airfare (once per year)
- Children's school fees (K-12 in Vietnam)
- Housing allowance (if structured correctly)
Social Insurance
Foreign employees under Vietnamese contracts (1+ year):
- Employee: 8% social insurance + 1.5% health insurance
- Employer: 17.5% social + 3% health + 1% unemployment
Filing & Compliance
Key dates:
- Tax year: January 1 - December 31
- Filing deadline: March 31 (following year)
- Departure filing: Within 45 days of leaving Vietnam
Requirements:
- Tax code registration
- Monthly withholding for employees
- Annual finalization
Remote Workers & Digital Nomads
Gray area considerations:
- Income from foreign clients/employers: technically may not be Vietnamese-source
- If staying 183+ days: worldwide income could be taxable
- Many remote workers don't declare foreign income (at your own risk)
- Consider structuring through offshore company
Double Taxation Treaties
Vietnam has 80+ DTAs including with:
- USA, UK, Canada, Australia, Germany, France, Japan, South Korea, Singapore
These can reduce or eliminate double taxation on various income types.
Pro Tips
- •Stay under 183 days per calendar year to avoid resident status if concerned
- •2026 reforms increased deductions—beneficial for employed expats
- •Remote income from foreign clients is a gray area—consult a professional
- •Vietnam has 80+ double taxation treaties—check your home country
- •File within 45 days of departure if leaving Vietnam permanently
Have questions about taxes in Vietnam?