How dividend tax works in Vietnam
Vietnam generally does not impose dividend withholding tax on dividends paid by Vietnamese companies to corporate shareholders, including foreign corporate shareholders. Dividends are usually paid from after-tax profits.
Individuals are treated differently. Dividend income is generally subject to 5% personal income tax, and Vietnam tax residents need to consider worldwide taxable dividend income, foreign withholding tax and treaty or credit relief where available.
Tax rates at a glance
- Corporate dividend WHT
- 0%Zero
- Individual dividend PIT
- 5%
- Domestic dividends to companies
- 0% WHT
- Foreign dividends for residents
- PIT applies
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Holding companiesInvestorsLocal foundersFamily businessesRegional operators
Watch out for
- A 0% Vietnam dividend withholding tax headline usually refers to corporate shareholders; individual shareholders generally face 5% PIT.
- Dividend distributions should be supported by after-tax profits, accounts, corporate approvals and any foreign investment or remittance procedures.
- Foreign dividends received by Vietnam tax residents can raise worldwide income, foreign tax credit and documentation issues.
Frequently asked questions
Does Vietnam tax dividends?
Vietnam generally taxes dividend income received by individuals at 5% PIT. Dividends paid to corporate shareholders are generally not subject to dividend withholding tax.
Does Vietnam have dividend withholding tax?
Vietnam generally has a nil dividend withholding tax rate for dividends paid to corporate shareholders, including foreign corporate shareholders.
Are foreign dividends taxed in Vietnam?
Vietnam tax residents are taxed on worldwide taxable income, so foreign dividends can be relevant. Source-country withholding tax and treaty or credit relief should be reviewed.