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Tax in Vietnam
We recommend to foreign investors to get acquainted with following taxes:
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Corporate Income Tax
By taking the decision on the investment site you also decide on corporate income tax incentives.
The standard tax rate is 25%. Most investment projects enjoy preferential tax rates that are guaranteed by law. The authority in charge of issuing the investment license may grant further investment incentives like tax exemption and tax reduction. These additional incentives are quite different to regions. A comparison is worthwhile in any case!
VIET-EURO-Consulting is looking forward to give advise about opportunities for corporate income tax reduction. Take the chance for maximizing your profits.
Corporate income tax, exemptions and reductions will be written in your investment license and are guaranteed by law.
Value Added Tax (VAT)
Among others, there are four major VAT rates:
- 0% - applicable to goods for export
- 5% - applicable to essential goods and services such as water supply, fertilizer, insecticides, medicine, educational and training equipment, agricultural and forestry products, etc.
- 10% - the standard tax rate, which is applicable to most goods and services
- 20% - applicable to luxury goods, such as gold, silver, precious stones, etc.
Profit Remittance Tax
The remittance of profits abroad is subject to profit remittance tax. The current rates vary between 3-7% depending of investment capital, location and scope of business.
Personal Income Tax
Foreigners working in Vietnam for more than 30 days are subject to personal income tax.
Foreigners working in Vietnam from 30 to less than 183 days a year are subject to tax payment at a fixed rate of 25% of the aggregate income.
Foreigners working in Vietnam for more than 183 days are subject to progressive tax rates. Monthly income of approximately USD 520 (VND 8 million) is tax free. To calculate personal income tax, the income is subdivided into tax schedules with each schedule having a separate tax rate. The sum of such sub-calculations generates the personal income tax to be paid.
