How income tax works in Vietnam
Vietnam income tax residents are taxed on worldwide taxable income, wherever paid or received. Employment income is taxed at progressive rates, while dividends, securities transfers, real estate transfers, royalties, franchising, inheritances and gifts use separate PIT rates.
{ "Non-residents generally pay 20% PIT on Vietnam-related employment income": { " Payroll compliance also includes compulsory insurance where conditions are met": "social insurance is generally 17.5% for employers and 8% for employees on a capped base, with health insurance and unemployment insurance considered separately." } }
Income tax brackets in Vietnam
| Bracket | Rate | Notes |
|---|---|---|
| Up to VND 10m/month taxable income | 5% | 2026 resident employment bracket. |
| Over VND 10m to 30m/month | 10% | Applies after deductions and exempt income. |
| Over VND 30m to 60m/month | 20% | Resident employment income. |
| Over VND 60m to 100m/month | 30% | Resident employment income. |
| Over VND 100m/month | 35% | Top marginal resident PIT bracket. |
Tax rates at a glance
- Resident employment PIT
- 5% - 35%Progressive
- Highest bracket tax
- 35%
- Non-resident employment PIT
- 20%
- Dividend PIT
- 5%
- Employee social insurance
- 8%
- Employer social insurance
- 17.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Local foundersEmployeesRegional operatorsManufacturersLong-term residents
Watch out for
- The 2026 PIT law increased the personal deduction to VND 15.5 million per month and the dependent deduction to VND 6.2 million per month, and reworked employment brackets into five bands.
- Individuals with business revenue of VND 500 million per year or below are not subject to PIT on that business income under the updated rules; above the threshold, tax depends on the business category.
- Expatriates should check residence, assignment start and end dates, tax finalisation, employer withholding, treaty relief and compulsory social, health and unemployment insurance status.
Frequently asked questions
What is the Vietnam income tax rate?
Vietnam resident employment income is taxed at progressive rates from 5% to 35% for 2026. Non-resident employment income connected with Vietnam is generally taxed at a flat 20%.
Does Vietnam tax foreign income?
Yes, if the individual is a Vietnam tax resident. Tax residents are subject to Vietnamese PIT on worldwide taxable income, subject to treaty relief and foreign tax credit rules where available.
Do expats pay income tax in Vietnam?
Yes, if they work in Vietnam or become tax resident. Expats commonly face employer withholding, annual or assignment-end PIT finalisation, and possible social insurance depending on contract and work permit status.