Taxes in Vietnam for foreigners and expats in 2026
Tax on a VND 40 million salary is half what it was a year ago. Vietnam raised the personal allowance to VND 15.5 million a month, cut the scale to five brackets and freed small businesses with up to VND 1 billion of revenue. A guide to every 2026 tax under the new laws: salary, contributions, VAT, business, property, cars, crypto and the treaty with Russia.
Short answer: in 2026 Vietnam taxes a resident's salary at 5% to 35% across five brackets after a VND 15.5 million (about 590 dollars) monthly allowance, and a non-resident's at a flat 20% with no allowances. Corporate income tax is 20%, or 15-17% for small companies, and VAT is 10%, cut to 8% for most goods until the end of 2026. Sales of shares and crypto are taxed at 0.1% of the transaction value, and sales of homes at 2% of the price.
Vietnam tax rates in 2026: at a glance
Vietnam rewrote almost its entire tax system in a single year. A new corporate income tax law took effect on 1 October 2025, new personal income tax rules for salaries and business income apply from 1 January 2026, and a new tax administration law has been in force since 1 July 2026. For anyone on a Vietnamese payroll, the result is welcome: tax on a monthly salary of VND 40 million fell by more than half compared with 2025.
The dong (VND) is Vietnam's currency. At bank rates in 2026, one US dollar buys about 26,300 dong, so VND 1 million is roughly 38 dollars and VND 1 billion is about 38,000 dollars. Amounts below are given in dong with conversions at that rate.
| Tax | 2026 rate | Who pays and on what |
|---|---|---|
| Resident personal income tax (thuế thu nhập cá nhân, TNCN) | 5-35% | Salary after a VND 15.5 million (about 590 dollars) monthly allowance, five brackets |
| Non-resident personal income tax | 20% | Vietnam-source salary, no allowances |
| Social contributions | 20.5% + 9.5% | Employer and foreign employee; 21.5% + 10.5% for Vietnamese citizens |
| Corporate income tax (thuế thu nhập doanh nghiệp, TNDN) | 20% | Companies; 15% with revenue up to VND 3 billion, 17% up to 50 billion, 0% up to 1 billion |
| Dividends and interest paid to individuals | 5% | Withheld by the payer; bank deposit interest is exempt |
| VAT (thuế giá trị gia tăng, GTGT) | 10% | 8% for most goods and services until 31 December 2026; reduced rate 5%, exports 0% |
| Household businesses and sole traders | 0% up to VND 1 billion revenue | Above the threshold, 15-20% of profit or a percentage of revenue |
| Sale of real estate | 2% of the price | Seller; the buyer pays a 0.5% registration fee |
| Sale of shares and crypto | 0.1% of the transaction value | Investor, on every trade, even at a loss |
| Sale of a stake in a company | 20% of the gain | Or 2% of the price if costs cannot be proven |
| Inheritances, gifts, winnings | 10% | On the amount above VND 20 million (about 760 dollars) from 1 July 2026, previously 10 million |
| Car registration fee | 10% and up | On first registration of a passenger car, 2% on resale |
If a reference guide shows seven income tax brackets and a VND 11 million allowance, it describes the rules before 2026. Those figures still circulate in articles and calculators but no longer apply to 2026 income.
We will calculate online the tax on your income and show how to pay less legally.
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Who is a tax resident of Vietnam
Vietnam's tax residence threshold is 183 days, and the consequences are harsh: a resident pays tax on worldwide income, not just on what is earned in the country. A salary from a foreign employer, interest on overseas deposits and rent from a flat in another country all formally belong on the Vietnamese return.
Residence applies if at least one condition is met:
- 183 days or more spent in Vietnam in a calendar year or in 12 consecutive months from the date of first arrival;
- a permanent residence in Vietnam: a registered permanent address (thường trú) or a rented home under a lease with a fixed term.
The second test catches out people who only count days. A long lease on a flat in Da Nang or Hanoi can make someone resident even with fewer days in the country. Under Ministry of Finance guidance in force before the new law, the deciding document in that situation is a tax residence certificate from another country: without it, arguing with the tax office is hard.
The tax year is the calendar year, with one exception for newcomers. If fewer than 183 days are spent in Vietnam in the year of arrival, the first tax year is the 12 months from the date of arrival. Arriving in autumn does not avoid residence: the days simply carry across the year end.
Tax already paid abroad on the same income is credited in Vietnam up to the Vietnamese tax on that income, provided there are supporting documents. How Russian tax residence is lost and what happens to Russian income after leaving is covered in the article on tax residence and the 183-day rule.
A foreign employee leaving Vietnam for good must close the tax year early: file a final return and pay any balance. If tax is owed, the tax authority can request an exit ban, and border guards enforce it.
Vietnam tax residency: how to become a resident and count the days
Vietnam makes you resident with 183 days or more in a calendar year or in 12 months in a row from the first arrival. The second route is a permanent registration or a lease of 183 days or more, unless you prove residency elsewhere.
The consequences are tough: a resident pays progressive tax on worldwide income, including salary from a foreign employer. A non-resident pays only on Vietnamese income. The status is confirmed by the General Department of Taxation.
The law does not stop you from confirming the status on your own. But mistakes cost more: a one-year lease in Nha Trang makes you resident before day 183. Murblz support removes these risks: we count days, check the lease and obtain a certificate from the other country or from Vietnam. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
183-day calculator
Tax residency calculator for Vietnam
Enter your travel dates: the calculator shows whether you are a tax resident of Vietnam today and at year end, and how many days are left before the threshold.
Counting by dates needs JavaScript. Below are the same rules by country.
What is the income tax rate in Vietnam in 2026
The top rate is still 35%, but it now starts at VND 100 million (about 3,800 dollars) of monthly taxable income rather than 80 million. The National Assembly (Quốc hội, Vietnam's parliament) passed the new Personal Income Tax Law No. 109/2025/QH15 on 10 December 2025. It took full effect on 1 July 2026, but the rules for residents' salaries and business income apply to the whole of 2026.
| Bracket | Monthly taxable income | In dollars, approx. | Rate |
|---|---|---|---|
| 1 | up to VND 10 million | up to 380 | 5% |
| 2 | VND 10-30 million | 380-1,140 | 10% |
| 3 | VND 30-60 million | 1,140-2,280 | 20% |
| 4 | VND 60-100 million | 2,280-3,800 | 30% |
| 5 | over VND 100 million | over 3,800 | 35% |
The scale is marginal: each rate applies only to the income inside its bracket. Before 2026 there were seven brackets from 5% to 35%, and the 35% rate kicked in at VND 80 million.
Taxable income is salary minus the employee's mandatory contributions and family allowances. From 1 January 2026 these were raised by Resolution No. 110/2025/UBTVQH15 of the National Assembly Standing Committee:
- personal allowance of VND 15.5 million a month (186 million a year), up from 11 million;
- VND 6.2 million (about 236 dollars) a month for each dependant, up from 4.4 million. Dependants must be registered with the tax office and backed by documents; the allowance is not automatic.
The new law adds deductions for medical and education costs of the taxpayer and dependants, plus voluntary pension insurance and life insurance. The government sets the limits, and none of these work without proper invoices.
Night-shift and overtime premiums, pay for unused annual leave and remuneration for science and innovation work are now fully exempt. IT and research get a separate break: five years without income tax on salary for staff in digital technology, semiconductor and artificial intelligence projects, and for researchers in high-tech fields. The conditions are set out in Government Decree No. 253/2026/NĐ-CP of 30 June 2026, and far from every programmer qualifies: the work has to be on a specific project from approved lists.
How much tax comes off a salary in Vietnam: sample calculation and contributions
The big divide in Vietnam is not between high and low salaries but between residents and non-residents. On the same VND 40 million salary, a resident pays VND 1.57 million in tax and a non-resident pays 8 million, five times as much.
Sample calculation for a foreign employee on a local employment contract, no dependants. For the VND 150 million salary, contributions use the cap for the second half of 2026.
| Line | Resident, VND 40 million | Resident, VND 150 million | Non-resident, VND 40 million |
|---|---|---|---|
| Gross salary | 40,000,000 (about 1,520 dollars) | 150,000,000 (about 5,700 dollars) | 40,000,000 |
| Employee contributions 9.5% | 3,800,000 | 4,807,000 (on the 50.6 million cap) | not deducted |
| Personal allowance | 15,500,000 | 15,500,000 | none |
| Taxable income | 20,700,000 | 129,693,000 | 40,000,000 |
| Income tax | 1,570,000 | 30,892,550 | 8,000,000 (20%) |
| Take-home pay | 34,630,000 (about 1,317 dollars) | 114,300,450 (about 4,346 dollars) | 32,000,000 |
| Tax as share of salary | 3.9% | 20.6% | 20% |
For comparison, under 2025 rules the tax on VND 40 million would have been 3.39 million dong and on 150 million, 37.2 million. The 2026 saving is 1.8 million and 6.4 million dong a month. Non-residents gained nothing from the reform: their rate is still a flat 20% on the full amount.
How much social contributions cost
On top of salary, the employer pays another 20.5% for a foreigner and 21.5% for a Vietnamese citizen. Foreigners join compulsory social and health insurance if they hold a work permit and an employment contract of 12 months or more. Exceptions are intra-company transferees and employees of retirement age. The legal basis is Social Insurance Law No. 41/2024/QH15, in force since 1 July 2025.
| Contribution | Employer | Employee | Who it covers |
|---|---|---|---|
| Social insurance: pension, sickness, maternity, work injury | 17.5% | 8% | Vietnamese citizens and foreigners |
| Health insurance | 3% | 1.5% | Vietnamese citizens and foreigners |
| Unemployment insurance | 1% | 1% | Vietnamese citizens only |
| Total for a foreigner | 20.5% | 9.5% | |
| Total for a Vietnamese citizen | 21.5% | 10.5% |
Pension and health contributions are capped at 20 times the base salary (lương cơ sở, a reference unit for state payments). From 1 July 2026, Government Decree No. 161/2026/NĐ-CP raised the base salary from VND 2.34 million to 2.53 million, lifting the cap from VND 46.8 million to 50.6 million (about 1,920 dollars) a month. Unemployment insurance has a different cap: 20 regional minimum wages, and the minimum wage in the largest cities has been VND 5.31 million since 1 January 2026. The employer also pays 2% of the payroll into the trade union fund.
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Corporate income tax in Vietnam and tax on dividends
A small company in Vietnam can pay no profit tax at all in 2026: with revenue up to VND 1 billion (about 38,000 dollars) a year, the rate is zero. Everyone else climbs a ladder where 20% applies only to businesses with revenue above VND 50 billion.
| Who | Corporate income tax rate | Legal basis |
|---|---|---|
| Revenue up to VND 1 billion a year | 0% | Government Decree No. 141/2026/NĐ-CP, from 1 January 2026 |
| Revenue up to VND 3 billion (about 114,000 dollars) | 15% | Corporate Income Tax Law No. 67/2025/QH15 |
| Revenue of VND 3-50 billion (up to 1.9 million dollars) | 17% | same law |
| All other companies | 20% | standard rate |
| Oil and gas | 25-50% | depending on each contract |
| Mining | 40-50% | depending on the project |
The 15% and 17% rates and the zero rate do not apply to companies linked to a larger business that does not itself qualify. Setting up a subsidiary of a group to pay 15% will not work.
Law No. 67/2025/QH15 has been in force since 1 October 2025 and already applies to 2025 profits. Another break came from National Assembly Resolution No. 198/2025/QH15 on private sector development: small and medium-sized companies first registered on or after 17 May 2025 pay no corporate income tax for three years. The same resolution abolished the annual business licence fee (lệ phí môn bài) for companies and sole traders from 1 January 2026.
Large multinational groups with revenue of 750 million euros or more are subject to a 15% global minimum tax under Resolution No. 107/2023/QH15. Tax holidays and preferential rates for priority sectors and zones remain, but for such groups they have largely lost their point: any shortfall below 15% is topped up anyway.
Dividends and repatriating profit
If the shareholder is a foreign company, there is no withholding tax on dividends: after-tax profit can be sent abroad without further deduction. If the shareholder is an individual, the company withholds 5% on the payout, for residents and non-residents alike.
A foreigner can do business in Vietnam only through a company: the simplified household business is reserved for Vietnamese citizens. Registration and licences are covered on the page company registration in Vietnam, and a bank account for it under business bank accounts in Vietnam. If the jurisdiction is not yet chosen, the options are compared on the company registration page.
What is the VAT rate in Vietnam and how to get a refund
Vietnam's standard VAT is 10%, but for almost all of 2026 the receipt shows 8%. The temporary two-point cut runs from 1 July 2025 to 31 December 2026 under National Assembly Resolution No. 204/2025/QH15 and Government Decree No. 174/2025/NĐ-CP. The law does not yet say what happens from 2027.
| Rate | What it applies to |
|---|---|
| 10% | Standard rate; in 2026 it still applies to telecoms, finance, banking, insurance, real estate, metals and excise goods other than petrol |
| 8% | Most other goods and services until 31 December 2026, including transport, logistics and IT |
| 5% | Reduced rate: water, some medical goods, teaching aids, some farm produce |
| 0% | Exports of goods and services, international transport |
| No VAT | Household businesses and sole traders with revenue up to VND 1 billion a year |
The current VAT Law No. 48/2024/QH15 took effect on 1 July 2025. Companies usually register for VAT from the start and file monthly or quarterly returns. For household businesses and sole traders the exemption threshold from 2026 is VND 1 billion of annual revenue.
How tourists get VAT back
A foreigner with a passport can reclaim 85% of the VAT on goods taken out of the country. The remaining 15% is kept by the agent bank that pays the refund at the border. The rules were updated by Ministry of Finance Circular (Thông tư, a ministerial regulation) No. 84/2026/TT-BTC of 30 June 2026.
- purchases in one store on one day must total at least VND 2 million (about 76 dollars), and receipts from the same day can be combined;
- the store must take part in the refund scheme and issue an invoice with a refund declaration;
- the purchase must be no more than 60 days old on the day of departure, unused and in its packaging;
- the goods must leave through a border gate that handles refunds, mainly international airports.
Goods banned from export and items not allowed on board an aircraft do not qualify.
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How much tax sole traders, freelancers and IT specialists pay in Vietnam
From 1 January 2026, Vietnam scrapped the fixed lump-sum tax that the tax office had assessed on small businesses for years, and at the same time raised the tax-free threshold to VND 1 billion (about 38,000 dollars) of annual revenue. The income tax law first lifted the threshold from 200 to 500 million dong, then on 29 April 2026 the government doubled it retroactively with Decree No. 141/2026/NĐ-CP. Anyone who already paid first-quarter tax on lower revenue gets an offset or refund.
These rules cover household businesses (hộ kinh doanh, a registered sole proprietorship or family business without a company) and individual traders. Above the threshold, tax works like this:
| Annual revenue | In dollars, approx. | Income tax |
|---|---|---|
| up to VND 1 billion | up to 38,000 | 0%, and no VAT either |
| VND 1-3 billion | 38,000-114,000 | choice: a percentage of revenue above the threshold by type of activity (0.5% to 5%) or 15% of profit |
| VND 3-50 billion | 114,000-1.9 million | 17% of profit |
| over VND 50 billion | over 1.9 million | 20% of profit |
| Renting out property | - | 5% of revenue above the threshold |
Rates for individual businesses now follow the same tiers as corporate income tax. Above VND 1 billion of revenue, electronic receipts from a till connected to the tax authority are mandatory, and those who cross the threshold during the year get 30 days to connect.
For foreigners: freelancing, IT and nomads
The awkward truth for foreigners: household businesses are registered by Vietnamese citizens, so working with local clients requires a company. Work permits are issued for a specific employer, and a tourist visa does not allow work in Vietnam.
Vietnam has no digital nomad visa in 2026. Russians can stay 45 days visa-free, and a 90-day multiple-entry e-visa is available to citizens of any country. There are no tax breaks for remote workers either: after 183 days in a year a remote worker becomes resident, and income from foreign clients or a foreign employer is formally taxable in Vietnam at the standard 5-35% scale. That income has to be declared personally, every quarter, because nobody withholds the tax.
The five-year IT exemption described above is tied to projects and companies in Vietnam, not to the profession. A developer working for an overseas client from a café in Nha Trang does not qualify.
Taxes on property, cars, inheritance, shares and crypto
Vietnam has no annual tax on a flat or house and no wealth tax. The state takes its share at the moment of the deal: 2% of the price when a home is sold, and 0.1% of the amount when shares or crypto are sold, even at a loss.
| Asset or transaction | Tax | How it is calculated |
|---|---|---|
| Sale of a flat or house | 2% income tax | On the sale price, not the gain |
| Purchase of property | Registration fee (lệ phí trước bạ) 0.5% | On the value, when title is registered |
| Holding land | Non-agricultural land use tax 0.03-0.15% a year | Based on area and the official land price; for a flat the amount is token |
| Renting out a home | 5% income tax | On revenue above VND 1 billion a year |
| Shares | 0.1% | On each sale |
| Stake in a company | 20% or 2% | 20% of the gain; 2% of the price if the purchase cost cannot be proven |
| Crypto | 0.1% | On each trade through a platform licensed in Vietnam |
| Gold bars | 0.1% | The rate is in the law, but the tax is not yet collected from 1 July 2026: the government will set the value threshold and the start date (Ministry of Finance letter No. 8454/BTC-CST) |
| Inheritances and gifts | 10% | On the amount above VND 20 million |
| Winnings | 10% | On the amount above VND 20 million |
Inheritances and gifts are taxed when they involve real estate, securities, company stakes or assets registered with the state, such as cars. Real estate passing between spouses, parents and children, siblings, and grandparents and grandchildren is exempt.
Foreigners can buy flats in residential projects in Vietnam: no more than 30% of the units in one building, with ownership for 50 years that can be extended, under the 2023 Housing Law. Details are on the page investment property in Vietnam.
Crypto
The tax on crypto trades was introduced by Ministry of Finance Circular No. 32/2026/TT-BTC, in force since 27 March 2026: 0.1% on each sale for individuals, residents and non-residents alike. It works inside the pilot legal crypto market the government launched in September 2025 for five years under Resolution No. 05/2025/NQ-CP. How are your trades on foreign exchanges taxed? Ask an expert.
Taxes on cars
Cars in Vietnam are expensive because of taxes built into the price. Excise tax (thuế tiêu thụ đặc biệt, special consumption tax) on passenger cars with up to 9 seats depends on engine size: from 35% up to 1,500 cc to 150% above 6,000 cc. Under the new Special Consumption Tax Law No. 66/2025/QH15, in force since 1 January 2026, hybrids pay 70% of the rate for a petrol car with the same engine size.
First registration of a passenger car carries a 10% registration fee, and a province can raise it by up to half again, to 15%. On resale of a car the fee is 2%. Electric cars are exempt from the registration fee until 28 February 2027.
Non-resident taxes and the Russia-Vietnam double tax treaty
The double tax treaty between Russia and Vietnam is in force: it was signed on 27 May 1993, and the 2023 suspension did not touch it. Russian Presidential Decree No. 585 of 8 August 2023 suspended parts of the treaties with 38 countries that Russia regards as unfriendly, and Vietnam is not on that list.
For individuals, the treaty matters less than it seems. Vietnam's withholding rates are already below the treaty caps, so its main value is the credit for Vietnamese tax in Russia and the rules on which country taxes salary during short stays.
| Income from Vietnam | Non-resident individual | Foreign company | Cap under the treaty with Russia |
|---|---|---|---|
| Salary | 20% | - | not taxed in Vietnam if under 183 days a year and the salary is not paid by a Vietnamese party |
| Dividends | 5% | 0% | 10% with an investment of at least 10 million dollars, otherwise 15% |
| Interest | 5% | 5% | 10% |
| Royalties | 5% above VND 20 million per contract | 10% | 15% |
| Sale of shares | 0.1% | 0.1% | - |
| Sale of real estate | 2% | - | taxed where the property is located |
Foreign companies providing services to Vietnamese customers pay foreign contractor tax (FCT, withheld by the Vietnamese customer on payment). For most services that is 5% corporate income tax plus VAT. A non-resident individual doing business in Vietnam pays a percentage of revenue by type of activity and cannot opt for tax on profit.
Since 1 July 2026, treaty relief has been governed by Ministry of Finance Circular No. 95/2026/TT-BTC, which replaced the 2013 rules. Claiming relief requires a tax residence certificate from the home country.
In total Vietnam has signed about 80 treaties, including with Ukraine, Kazakhstan, Belarus, Uzbekistan, Azerbaijan, Israel, Turkey, the UAE and Serbia. The treaty with the United States has been signed but has never entered into force, so US citizens can only rely on the credit rules of their own country.
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Filing deadlines and penalties in Vietnam
Late tax in Vietnam costs 0.03% a day, almost 11% a year, and the interest runs from day one. Fines for late returns come on top, and a tax debt can end with a ban on leaving the country.
| What | Deadline | Who files |
|---|---|---|
| Tax withheld from salaries | by the 20th of the following month, or by the end of the month after the quarter | employer |
| Annual salary return for employees | by the last day of the third month after the year (31 March) | employer |
| Individual annual return | by the last day of the fourth month after the year (30 April) | the taxpayer, if there are several sources or income from abroad |
| Salary from a foreign employer | quarterly, by the end of the month after the quarter | the employee |
| Corporate income tax return | by the last day of the third month after the year | the company |
| Leaving the country for good | before departure | foreign employees |
Returns go to the tax authority (Cục Thuế, the Tax Department of the Ministry of Finance) through its online portal. Fines for late filing are set by Government Decree No. 125/2020/NĐ-CP as amended by Decree No. 310/2025/NĐ-CP, in force since 16 January 2026. For organisations they range from VND 2 million to 25 million depending on the delay, and 15-25 million for more than 90 days late. Individuals pay half: VND 7.5-12.5 million (about 285-475 dollars) for the longest delays.
Understating tax on a return costs 20% of the shortfall; tax evasion carries a fine of one to three times the unpaid tax.
A new Law on Tax Administration No. 108/2025/QH15 has applied since 1 July 2026. Returns can now be corrected within five years of the filing deadline, and if a correction increases the tax, late interest of 0.03% a day is charged on top of the extra tax.
Who Vietnam's tax system suits and who it does not
In 2026 Vietnam works well for those earning a local salary of up to VND 60-80 million (2,300-3,000 dollars) a month and for share investors: 0.1% of turnover is gentler than most capital gains taxes. It works badly for anyone with large income from abroad: residence starts after 183 days, and worldwide income is taxed on a scale reaching 35%.
| Country | Resident income tax | Corporate tax | Residence threshold |
|---|---|---|---|
| Vietnam | 5-35% | 20%, small firms 15-17% | 183 days |
| Thailand | 0-35% | 20% | 180 days |
| Indonesia | 5-35% | 22% | 183 days in 12 months |
| Malaysia | 0-30% | 24%, small firms 15-17% | 182 days |
| Russia | 13-22% | 25% | 183 days |
Vietnam's advantages in 2026:
- a light real burden on middle salaries: 3.9% tax on VND 40 million a month;
- 0.1% on sales of shares and crypto, 2% on selling a home, no annual tax on a flat and no wealth tax;
- no withholding tax on dividends to a foreign corporate shareholder;
- zero profit tax and no VAT for very small businesses up to VND 1 billion of revenue.
Drawbacks worth knowing in advance:
- a resident's worldwide income is taxed on the same scale as salary and must be declared personally;
- there is no digital nomad visa and no break for remote workers;
- a foreigner cannot set up a household business, only a licensed company;
- laws changed one after another in 2025-2026, and the details come in decrees issued after the laws take effect;
- a tax debt can turn into an exit ban.
Moving with a family requires a local bank account and a clear income structure. Opening a personal account is covered on the page personal accounts in Vietnam, and rates in other countries are collected under taxes by country. Where a transaction or a dispute with the tax office needs legal support, it is handled by Murblz specialists together with locally licensed partners.
FAQ
What taxes do foreigners pay in Vietnam?
What is the income tax rate in Vietnam in 2026?
What is the VAT rate in Vietnam and can tourists get it back?
Do I have to pay tax in Vietnam if I work remotely for a foreign company?
How much tax does a sole trader pay in Vietnam?
What are the taxes on cars in Vietnam?
What is the corporate income tax rate in Vietnam in 2026?
Does Vietnam have a double tax treaty with Russia?
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