Thailand vs Vietnam taxes (2026): income tax, company tax and VAT

Thailand vs Vietnam tax rates at a glance

Tax	🇹🇭 Thailand	🇻🇳 Vietnam
Income tax	Personal income tax: 0% to 35% Top bracket: 35% Foreign income: Taxable if remitted Social security: 5% (THB 750 max)	Resident employment PIT: 5% - 35% Highest bracket tax: 35% Non-resident employment PIT: 20% Dividend PIT: 5% Employee social insurance: 8% Employer social insurance: 17.5%
Corporate tax	Corporate income tax: 20% SME corporate tax: 0% / 15% / 20% Foreign-company WHT: 15% Petroleum income tax: 50% Top-up tax: 15%	Standard CIT: 20% Qualifying small enterprises: 15% / 17% Preferential CIT: 10% / 15% / 17% Oil and gas CIT: 25% - 50% Certain mineral resources: 40% - 50%
Capital gains tax	Capital gains tax: 0% to 35% Listed share gains: 0% Crypto gains: 0% Ordinary income treatment: 35%	Securities transfer: 0.1% Real estate transfer: 2% Individual capital assignment: 20% Corporate gains: 20% CIT
Dividend tax	Dividend withholding tax: 10% Resident individuals: 10% Resident corporations: 0% / 10% Non-residents: 10%	Corporate dividend WHT: 0% Individual dividend PIT: 5% Domestic dividends to companies: 0% WHT Foreign dividends for residents: PIT applies
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0% broad tax
Inheritance / estate tax	Inheritance tax: 10% Ascendants and descendants: 5% Spouse: 0% Threshold: THB 100 million	Inheritance PIT: 10% Estate tax: 0% Gift PIT: 10% New threshold: VND 20m
VAT / GST / sales tax	VAT: 7% (temporary)	VAT: 10% standard
Standard VAT	7%	10% normal; 8% temporary for eligible supplies through 2026
Top employment tax	35%	35%

Who wins on each tax

Personal income taxTie

Both countries have top employment income tax rates of 35%.

Corporate taxTie

Both commonly use a 20% standard corporate tax rate, with sector and incentive differences.

Capital gains taxThailand

Thailand can be more favourable for some listed securities; Vietnam taxes share and property transfers under specific rules.

VATThailand

Thailand's standard VAT rate is 7%, below Vietnam's normal 10% VAT rate; Vietnam temporarily applies 8% to eligible goods and services through 31 December 2026.

Operating baseVietnam

Vietnam is often stronger for manufacturing, staff-heavy operations and onshore commercial substance.

The verdict

The personal-tax headline is close: both countries tax employment income up to 35%. Thailand has a broader expat lifestyle pull, but residents need to be careful with foreign income remitted into Thailand under the current remittance approach.

Vietnam is often clearer for local operations. The standard corporate tax rate is 20%, similar to Thailand, and Vietnam's manufacturing and export economy can make it the better base when the business is actually onshore.

Choose Thailand for lifestyle, regional mobility and a softer landing if the tax profile still works. Choose Vietnam when the business case is local operations, staff, supply chain or market access rather than personal tax optimisation.

How to read this comparison

Thailand and Vietnam are not tax havens. They are practical Asia bases where the right answer depends on where you live, where the company operates and whether local market access matters more than headline tax.

Which one fits you

🇹🇭 Choose Thailand if you're a…

Lifestyle-led expats and regional founders
Residents who can manage remittance exposure carefully
Businesses serving Thailand or using Thai talent

🇻🇳 Choose Vietnam if you're a…

Operators building staff or supply chain in Vietnam
Export, manufacturing and local-market businesses
Founders who want a clear onshore business base

Frequently asked questions

Is Thailand or Vietnam better for tax?

Neither is a classic low-tax personal base because both have 35% top employment tax rates. Thailand is often better for lifestyle-led residents, while Vietnam can be better for real operating companies and staff-heavy businesses.

Does Thailand tax foreign income?

Thai tax residents need to check the current remittance rules carefully. Foreign income can become taxable when remitted into Thailand, depending on residence, timing and the type of income.

What is Vietnam's corporate tax rate?

Vietnam's standard corporate income tax rate is generally 20%, with different rates or incentives for some sectors, locations and investment projects.