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Panama vs Vietnam Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
Panama25%Lower
Vietnam35%
Corporate Tax
Panama25%
Vietnam20%Lower
Capital Gains
Panama10%Lower
Vietnam20%
VAT / Sales Tax
Panama7%Lower
Vietnam10%
| Category | Panama | Vietnam |
|---|---|---|
| Tax System | Territorial | Progressive |
| Top Income Tax | 25% | 35% |
| Corporate Tax | 25% | 20% |
| Capital Gains | 10% | 20% |
| VAT / Sales Tax | 7% | 10% |
| Crypto Tax | No | No |
| Wealth Tax | No | No |
| Tax Treaties | 18 | 81 |
| Currency | PAB | VND |
The bottom line: Panama vs Vietnam
Panama has the lower headline rate on 3 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. Panama runs a territorial tax system, while Vietnam uses a progressive one. Vietnam has the wider tax-treaty network (81 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Panama is lower (25% vs 35%)
- Corporate tax: Vietnam is lower (25% vs 20%)
- Capital gains tax: Panama is lower (10% vs 20%)
- VAT / sales tax: Panama is lower (7% vs 10%)