Vietnam Tax Rates
Vietnam operates a progressive personal income tax system with rates from 5% to 35%, administered by the General Department of Taxation. The standard corporate tax rate is 20%, and VAT is 10%. Vietnam has become one of Asia's fastest-growing economies, with attractive investment incentives and Special Economic Zones offering reduced tax rates for foreign investors. The country has an expanding tax treaty network of over 80 agreements.
Top Income Tax Rate
35%
Corporate Tax Rate
20%
VAT / Sales Tax
10%
Capital Gains Tax
20%
Detailed Tax Information
Income Tax Brackets
Vietnam's personal income tax (PIT) applies progressive rates from 5% to 35% on employment and business income. Residents are taxed on worldwide income while non-residents are taxed at a flat 20% on Vietnamese-sourced employment income. Personal deductions include VND 11 million per month for the taxpayer and VND 4.4 million per month per dependent. Various types of non-employment income (capital gains, investments, inheritances) are taxed at separate flat rates.
| Income Range | Tax Rate |
|---|---|
| ₫0 – ₫60.0M | 5% |
| ₫60.0M – ₫120.0M | 10% |
| ₫120.0M – ₫216.0M | 15% |
| ₫216.0M – ₫384.0M | 20% |
| ₫384.0M – ₫624.0M | 25% |
| ₫624.0M – ₫960.0M | 30% |
| ₫960.0M+ | 35% |
Corporate Tax
Vietnam's standard corporate income tax (CIT) rate is 20%. Preferential rates of 10%, 15%, and 17% are available for enterprises operating in encouraged sectors, special economic zones, or disadvantaged areas. Oil and gas companies pay rates of 32-50% depending on the project. New investments in priority sectors may receive 2-4 year tax holidays and 50% reductions for 4-9 additional years. SMEs with annual revenue under VND 3 billion may qualify for a reduced rate.
Standard Rate
20%
Small Business Rate
15%
Capital Gains Tax
Capital gains in Vietnam are taxed at different rates depending on the type of asset. Real property transfers are taxed at 2% of the gross transfer value. Securities transfers (listed shares) are taxed at 0.1% of gross sale proceeds. Capital transfers (equity in non-listed companies) are taxed at 20% of net gain for residents. Non-residents pay 0.1% on securities and 2% on real property.
Rate
20%
VAT / Sales Tax
Vietnam's VAT has three rates: 0% (exports), 5% (essential goods), and 10% (standard rate). A temporary reduction to 8% for the standard rate was introduced as economic stimulus and has been extended. Exempt supplies include financial services, healthcare, education, cultural activities, and certain agricultural products. Vietnam has been modernizing its VAT system, including extending VAT to digital services provided by foreign suppliers.
Standard Rate
10%
Cryptocurrency Tax
Vietnam has not introduced specific cryptocurrency tax legislation. The State Bank of Vietnam does not recognize cryptocurrency as a legal means of payment, but crypto ownership is not illegal. In the absence of specific rules, crypto gains could potentially be taxed under general income tax provisions as 'other income' at 10%, but enforcement is minimal.
Tax Treaties
Vietnam has over 81 double taxation agreements in force, reflecting its integration into the global economy. These treaties provide reduced withholding rates and relief from double taxation. Vietnam generally follows the UN Model Convention in treaty negotiations. The country has also signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.
Treaty Network
81
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Vietnam
See how much you could save by moving here from your current country.
+$9K
Tax in United States
$24K
24.4% effective
Tax in Vietnam
$16K
15.5% effective
You Save
36.4%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
