If you’re planning to live and work in Vietnam, understanding the local tax system is crucial — especially for expatriates. While your employer will often handle tax matters on your behalf, it’s important to be aware of how taxation works, particularly when it comes to employment income, capital gains, and other forms of personal income.
Taxes in Vietnam are administered at a national level, meaning you won’t need to worry about different rules for different cities or provinces. That said, the system can be complex at first glance. This guide will help break it down into more understandable terms — with a particular focus on how your residency status affects your liability and what you can expect to pay.
And as you settle into life in Vietnam, don’t forget to think about your health coverage. With Pacific Cross, finding reliable health insurance in Vietnam is easy and stress-free. Our health insurance plans are designed to provide peace of mind and comprehensive support, whether you're here short-term or planning to stay long-term. Learn more about how we can help you protect your well-being.
Your tax obligations in Vietnam hinge largely on whether you're considered a tax resident. If you’re physically present in Vietnam for 183 days or more within any 12-month period, or if you have a place of residence here for more than half a tax year, you are generally regarded as a resident for tax purposes. This includes extended stays in hotels or guesthouses.
Even if you're not employed during your entire stay, the tax office may count your residency from the moment you arrive — even if your job starts later. For instance, arriving on March 25 and starting work on April 5 could still make you liable for tax beginning in March.
To avoid being treated as a resident, you must provide official documentation proving your tax residency in another country.
Unfortunately, tax concessions for expatriates in Vietnam are quite limited. However, there are a few exceptions, such as:
If your compensation package includes accommodation, you may owe additional tax based on the rental value — but this will not exceed 15% of your total gross income.
Most types of income are taxable in Vietnam, whether paid locally or from abroad (if you are a resident). This includes:
If you are earning income abroad, it’s important to note that health insurance in Vietnam does not count as taxable income, making it a smart investment for both your financial and physical health.
Vietnamese tax residents must declare all global income, while non-residents only need to report Vietnamese earnings. Thankfully, Vietnam has signed Double Taxation Agreements (DTAs) with over 80 countries, allowing taxpayers to avoid being taxed twice on the same income.
To take advantage of these treaties, you'll need to present official documentation from your home country proving that you've already paid taxes there.
Some key DTA partner countries include:
For employees, income tax is calculated on a sliding scale:
Employers usually withhold taxes and submit them to the government, but expats may also file directly.
And as you settle into life in Vietnam, don’t forget to think about your health coverage. With Pacific Cross, finding reliable health insurance in Vietnam is easy and stress-free. Our comprehensive health insurance products are designed to support expats with flexible coverage, dependable service, and peace of mind wherever life in Vietnam takes you.
Corporate Income Tax (CIT) in Vietnam is set at a flat rate of 20%, but businesses in certain sectors like oil, gas, or mineral extraction may face rates as high as 50%.
Additional taxes to be aware of include:
There’s no city or local sales tax in Vietnam, but you should still be mindful of the following:
Vietnam allows some deductions for resident taxpayers:
To claim these, supporting documentation must be submitted to the local tax office, ideally by January 30 each year.
Some forms of income are exempt from personal income tax, including:
Also exempt are business expenses like work-related travel, commuting costs, and job training.
Vietnam’s tax system can seem complicated, but staying informed is the best way to ensure compliance. Whether you’re earning a salary, investing, or operating a business, understanding your obligations can help avoid surprises at tax time.
And while you’re sorting out finances, don’t overlook your health coverage. With Pacific Cross, you’ll find health insurance in Vietnam that matches your needs — whether you’re an individual, a family, or an employer. Our flexible plans are tailored to expats and offer support you can rely on, from hospital stays to preventive care.
For personalised help with health insurance in Vietnam, talk to Pacific Cross today. We’re here to support your life and work in Vietnam.
