Vietnam Tax Rules for Foreigners and Investors

Personal Income Tax (PIT) for a foreigner citizen who will be living in Vietnam from January 2026.

1. When will foreigner become a tax resident of Vietnam

According to Clause 2, Article 2 of the Law on Personal Income Tax 2025, as guided by Article 2 of Decree No. 65/2013/NĐ-CP,

2. A resident individual is a person who meets one of the following conditions:

a) Being present in Vietnam for 183 days or more in a calendar year or for 12 consecutive months from the first date of arrival in Vietnam;

For the purposes of this provision, “being present in Vietnam” means the physical presence of the individual within the territory of Vietnam.

b) Having a regular place of residence in Vietnam under one of the following circumstances:

– Having a registered permanent residence in accordance with the law on residence; or

– Having a rented house for residence in Vietnam under the housing law, with a lease term of 183 days or more in the tax year.

⇒ For resident individuals, taxable income includes income arising both within and outside the territory of Vietnam, regardless of where the income is paid.

⇒ Therefore, if they satisfy either of the conditions regarding the number of days residing in Vietnam or having a regular place of residence in Vietnam, they will be considered a resident individual and will be required to pay personal income tax on income earned both in and outside Vietnam.

2. What taxes and contributions, and how much, will the employee have to pay from the following gross monthly salaries: $10,000; $5,000.

Also, please provide the total employment cost (including all social contributions and taxes) for the three gross salary scenarios: $5,000, $10,000

For foreign employees working in Vietnam and participating in mandatory social insurance, the contribution rates are as follows:

Employer		Employee
Social Insurance	Health Insurance	Social Insurance	Health Insurance
17.5%	3%	8%	1,5%
Total: 30%

⇒ The total mandatory social insurance contribution rate is 30%, in which the foreign employee contributes 9.5% of their salary, and the employer contributes 20.5% of the employee’s monthly salary fund for social insurance purposes.

However, the maximum mandatory social insurance (SI) contribution is capped at 20 times the base salary. Currently, the base salary is VND 2,340,000 per month, so the maximum salary for SI contribution is: 20 × 2,340,000 VND/month = 46,800,000 VND.

Regarding personal income tax, it will be calculated as follows:

Taxpayer	RESIDENT
	Signing labor contracts with the duration of 03 months or more
Formulae	Payable Tax Amount = Assessable income (x) Tax rate
Assessable income	Assessable income = Taxable income (–) Deductions
Taxable income	Taxable income = Total of wages/salary, remunerations and other incomes considered as wages/salary (–) Tax-free income
Tax rate	Under the Progressive tax table (as mentioned below)
Deduction	– Personal deductions: for the taxpayer: 15.500.000 VND/month; for each dependent person: 6.200.000 VND/month; – Compulsory insurance; – Donations to charity, humanitarian, study encouragement; – Other cases as specified in the laws from time to time;
Tax-free income	Including income for mid-shift meals, lunch; expense for contact (using phone); expense for business trip;…

PROGRESSIVE TAX TABLE

Level	Assessable income (“AI”)/month	Tax rate	Formulae for Tax payable
			Formulae 1	Formulae 2
1	To 10M (million VND)	5%	0M + 5% AI	5% of AI
2	From over 10M to 30M	10%	0,5M (+) 10% of AI over 10M	10% of AI (-) 0,5M
3	From over 30M to 60M	20%	2.5M (+) 20% of AI over 30M	20% of AI (-) 3,5M
4	From over 60M to 100M	30%	8,5M (+) 30% of AI over 60M	30% of AI (-) 9,5M
7	Over 100M VND	35%	20,5M (+) 35% of AI over 100M	35% of AI (-) 14,5M

Note: Depending on the individual’s personal deductions and the allowances provided by the Company/Representative Office to the employee, the exact tax rate and taxable income will be determined accordingly.

We will provide detailed advice on this matter once we receive sufficient information to prepare the payroll for our client.

3. If foreigner receives their salary in other country, will their pay also Vietnamese PIT on this income?

⇒ Since foreigner are classified as a tax resident in Vietnam, they are required to pay personal income tax on all income earned both within and outside the territory of Vietnam (including income generated from abroad, Vietnam, and any other countries where they have taxable income).

However, when declaring and paying tax in Vietnam, they may submit supporting documents evidencing the tax already paid in Abroad. The Vietnamese tax authorities will review these documents and allow a tax credit for the amount of tax paid in Abroad. They will then only be required to pay the difference (if any) between the Vietnamese tax liability and the tax already paid in Abroad, in accordance with Vietnam’s tax regulations.

4. Will I need to declare my income from other countries to the Vietnamese tax authorities?

⇒ Yes. As a tax resident in Vietnam, they are required to pay personal income tax on all income arising both within and outside the territory of Vietnam.

Accordingly, the Vietnamese tax authorities will require they to declare theyr total worldwide income, including income earned outside Vietnam, for the purpose of determining their taxable income.

5. What happens if I don’t declare it?

⇒  In the event that they fail to declare theyr foreign income, resulting in an underpayment of personal income tax in Vietnam, they may be subject to administrative penalties or, in serious cases involving tax evasion, to criminal prosecution in accordance with Vietnamese law.

6. How would the Vietnamese tax authorities see my income in Abroad?

⇒ The Vietnamese tax authorities may request the tax authorities or competent agencies in Abroad to verify theyr income earned in Abroad.

7. If the Vietnamese tax authorities do see my income from Abroad, what would happen then?

⇒ Once the Vietnamese tax authorities become aware of theyr income earned in Abroad, they will require they to declare and pay personal income tax on all income generated both in Vietnam and Abroad.

In addition, if they delay the declaration or payment of tax, they may be subject to administrative penalties or, in serious cases involving tax evasion, to criminal prosecution in accordance with Vietnamese tax laws and regulations.

8. If the income is received by another person in Abroad, but they also live in Vietnam for more than 183 days per year, what PIT will they pay? And from what point?

⇒ Similarly to their case, under Vietnamese law, an individual who is present in Vietnam for 183 days or more in a calendar year, or for 12 consecutive months from the first date of arrival in Vietnam, is considered a tax resident.

For tax residents in Vietnam, personal income tax is payable on all income earned both within and outside the territory of Vietnam, regardless of the source or place of payment of that income.