PERSONAL INCOME TAX (PIT)
Individuals liable to Vietnamese Personal income tax comprise Vietnamese citizens and foreigners having Vietnam sourced income.
An individual shall be considered a Vietnamese Tax resident if he/ she meets one of the following conditions:
- Residing in VietNam for 183 days or more in 12 consecutive months from the first arrival date or in a calendar year;
- Having a registered permanent residence in Vietnam as recorded by a temporary/ permanent residence card;
- Having rented a house in Viet Nam with a term of 183 days or more within a tax year.
Tax relief: Tax residents of Vietnam are entitled to the following deductions from taxable income:
Personal relief: VND 11 million/month (» 468 USD/month).
Family relief: VND 4.4 million/month/dependent (» 187 USD/month).
1. PIT from employment income
Employment income includes salaries and wages, and all forms of remuneration and fringe benefits. The PIT rate applicable to the Tax residents (including Vietnamese citizens) is ranging from 5 ~ 35 % depending on income level, while the PIT rate applicable to the Tax Non-residents is currently fixed at 20%
PIT rate applicable to Tax residents for the employment income
|Bracket||Monthly employment income for Tax residents||PIT rate
|From (million VND)||To (million VND)|
|1||0||5 (» $213)||5|
|2||5||10 (» $426)||10|
|3||10||18 (» $766||15|
|4||18||32 (» $1,362)||20|
|5||32||52 (» $2,213)||25|
|6||52||80 (» $3,404)||30|
|7||80 (» $3,404)||35|
2. PIT from Non – employment income (applicable to both Tax resident and Non-Tax resident)
|Non-employment income||PIT Tax rate|
|0.5% ~ 5% on revenue for tax resident; 1% ~ 5% on revenue for non tax resident
(depending on type of business)
|Capital investment, i.e. interest, dividends (except for bank interest)||5%|
|Capital transfer||20% on net gains for tax resident; 0.1% on sales proceeds for non-tax resident|
|Securities / JSC share transfer||0.1% on sales proceeds|
|Real estate transfer||2% on sales proceeds|
|Winning prizes (in excess of VND 10 million)||10%|
|Copyright (in excess of VND 10 million)||5%|
|Royalty/ franchising (in excess of VND 10 million)||5%|
|Gifts / inheritances (in excess of VND 10 million)||10%|