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If you’re looking for a country with a tropical climate, low cost of living, and beaches galore, Vietnam might just be right for you. For all of these reasons and more, Vietnam is becoming an increasingly popular destination for retirees, digital nomads, and other expats. Before moving there, of course, it’s wise to do some research — including on taxes in Vietnam.
That’s where we come in. As a dedicated tax firm for Americans abroad, we’ve helped thousands of clients in hundreds of countries around the world navigate US expat taxes — including in Vietnam. Below, we’ve compiled a brief (but thorough!) guide to Vietnam taxes.
Read on to learn who has to file and pay taxes in Vietnam, how much taxes are in Vietnam, what your US tax obligations are as an expat, and more.
Snapshot of taxes in Vietnam
- Primary tax forms: Form No. 02/KK-TNCN
- Tax deadline: March 31st (employers), April 30th (individuals)
- Reporting website: Vietnam eTax portal
- Administrative language(s): Vietnamese
- US Tax treaty? No
- Totalization agreement? No
Determining Vietnamese tax residency & liability
Vietnam defines tax residents as those who:
- Stay in Vietnam for 183 days or more in the calendar year or 12 consecutive months from the day they arrived, OR
- Maintain a permanent residence in Vietnam and cannot prove tax residence in another country
- Note: The definition of permanent residence includes residences listed on residence cards as well as homes rented or leased for 183 days or more
Tax residents of Vietnam are subject to taxation on their worldwide income. Non-tax residents, on the other hand, are subject to taxation only on their Vietnam-sourced income.
Understanding the Vietnamese tax system and deadlines
Vietnam’s tax authority is the General Department Of Taxation (GDT), which serves under the Ministry of Finance. They are responsible for implementing tax policies, overseeing tax collection, enforcing compliance, and helping taxpayers navigate their tax and reporting obligations.
Employers must generally file personal income tax (PIT) returns on behalf of employees whose income exceeds 11 million VND (~$434) per month or 132 million VND (~$5,211) per year. For each dependent an employee has, the threshold increases by 4.4 million VND (~$174) per month or 52.8 million VND (~$2,085) per year.
That means if the only income you have is employment income — and you don’t want to claim any form of tax relief — you may not need to submit a tax return in Vietnam. If you do want to claim a tax break, or you earn other types of income, you will likely need to file a tax return.
Employers must generally submit tax returns by March 31st, while individuals should have theirs in by April 30th. Self-employed individuals, on the other hand, must file tax returns on a quarterly basis. Furthermore, expats usually must file a tax return upon leaving the country to settle any outstanding tax and reporting obligations.
Employers typically submit their returns via an e-filing system. In some cases, individuals may be able to access it as well. However, most expats print and file their returns at their local tax office.
Note:
Before filing Vietnamese taxes, you must apply for a taxpayer identification number (TIN).
Personal income tax rates in Vietnam
Tax residents
Those whose annual employment income exceeds 132 million VND (~$5,211) plus 54.8 million VND (~$2,163) per dependent are subject to personal income taxes in Vietnam. Employment income tax rates are progressive (i.e. the more you earn, the higher your tax rate) and marginal, meaning different tax rates apply to different bands of income.
Tax rates on employment income range from 5% to 35%, depending on your overall taxable income:
Employment income tax rates in Vietnam
| Annual Income (VND) | Annual Income (USD) | Tax rate |
| Up to 60 million₫ | Up to ~$2,369 | 5% |
| 60 million₫ – 120 million₫ | ~$2,369 – ~$4,738 | 10% |
| 120 million₫ – 216 million₫ | ~$4,738 – ~$8,527 | 15% |
| 216 million₫ – 384 million₫ | ~$8,527 – ~$15,160 | 20% |
| 384 million₫ – 624 million₫ | ~$15,160 – ~$24,635 | 25% |
| 624 million₫ – 960 million₫ | ~$24,635 – ~$37,890 | 30% |
| Over 960 million₫ | Over ~$37,890 | 35% |
Other types of income have different tax rates, such as:
- Interest/dividends: 5%
- Franchising/royalties income: 5%
- Sale of shares: .1% of sales proceeds
- Sale of real estate: 2% of sales proceeds
- Business income: .5% to 5%, depending on type
Several kinds of income are exempt from taxation in Vietnam, including:
- Interest from banks
- Interest & compensation from insurance policies
- Pension & retirement income (from Vietnam or abroad)
- Income from a property transfer between direct family members
- Casino winnings
Note:
Business income applies to both rental income and income from small businesses. Larger companies must register as corporations and are subject to a separate corporate income tax in Vietnam (20%).
Non-tax residents in Vietnam
Non-tax residents in Vietnam are subject to taxes at the following rates:
- Employment income: 20%
- Business income: 1% to 5%, depending on type
- Sale of real estate: 2% of sales proceeds
- Sales of shares/capital assignment: .1% of sales proceeds
- Interest/dividends: 5%
- Franchising/royalties: 5%
Deductions & allowances
Vietnam’s personal allowances are the same as the filing thresholds:
- Individual: 11 million VND (~$434) per month or 132 million VND (~$5,211) per year
- Dependents: 4.4 million VND (~$174) per month, or 52.8 million VND (~$2,085) per year
- Note: You must register qualifying dependents before you can claim the allowance
Other tax incentives include the ability to deduct contributions to certain approved charities, most types of social security taxes, and voluntary pension contributions up to a certain amount.
Other taxes in Vietnam
Capital gains tax in Vietnam
Unlike many countries, Vietnam doesn’t levy capital gains taxes on sales of real estate or shares. Instead, the sales proceeds are subject to special PIT rates mentioned previously. However, gains from the sale of a business in Vietnam in which you hold interest are subject to a 20% tax for tax residents while non-tax residents pay just .1%.
Social security taxes in Vietnam
There are several different types of social security taxes in Vietnam:
| Employer | Employee | |
| Social insurance | 17.5% | 8% |
| Health insurance | 3% | 1.5% |
| Unemployment insurance | 1% | 1% |
Income subject to social security taxes includes salary, certain allowances, and most regular payments. Contributions are capped at 20x the basic salary.
Social security taxes for self-employed individuals are not mandatory. Those who wish to receive health insurance and social insurance benefits, however, can choose to make contributions voluntarily.
Note:
Because Vietnam has no totalization agreement with the US, Americans living in Vietnam may need to pay social security taxes to both countries.
Property taxes in Vietnam
Vietnam levies several different types of property taxes:
- Buying property
- Registration fee: .5% of value on property transfers, split between buyer and seller
- VAT: 10% on value of new property
- Notary fees: Typically .05% to .1% of value
- Owning property
- Property tax: Typically .03% to .15% of value
- Rental income tax: .5% to 5%, depending on overall taxable income
- Selling property
- Individuals: 2% of sale proceeds
- Corporations: 20% of sale proceeds
VAT tax in Vietnam
Vietnam’s standard value-added tax (VAT) rate is 10%, but there are reduced rates for some goods and services:
- 5% VAT: Whole foods, medicines and medical equipment, water, books, certain cultural, artistic, or sports services/products, etc.
- 0% VAT: Exported goods and services
Prices of goods in stores usually include VAT in Vietnam. Services may charge it as a separate line item. Business owners and self-employed individuals generally need to charge their clients/customers VAT and remit the proceeds to the government each quarter.
Gift, inheritance, & estate taxes in Vietnam
Gifts and inheritances from direct family members are typically exempt from taxation. If someone inherits or receives money from someone who isn’t a direct family member, they are generally subject to a 10% tax.
How to avoid double taxation as an expat in Vietnam
All American citizens and permanent residents living in Vietnam who earn above a certain threshold must file (and potentially pay) US federal taxes. This is due to the US’s citizenship-based taxation system, which makes all Americans subject to US taxes — even if they live abroad.
Typically, your main tax return will be Form 1040. Overseas Americans get an extra two months to file their taxes, pushing the deadline to June 15th. If you need more time, you can file Form 4868 to extend the deadline to October 15th. No matter when you file your tax return, though, you must still make estimated payments by April 15th.
If you’re also subject to Vietnamese taxes, you may be at risk of double taxation. The good news? The US offers two main tax breaks for expats that often help them dramatically reduce (or even eliminate) their US tax liability. This includes the:
Foreign Tax Credit (FTC)
Claiming the FTC gives you dollar-for-dollar US tax credits on foreign taxes you’ve accrued, provided that they’re:
- Legal
- Based on income
- Paid
- Charged in your name
For expats who pay higher tax rates in Vietnam than in the US, the FTC often erases their US tax liability entirely or gives them surplus credits for future tax bills. You can claim the FTC by filing Form 1116.
Foreign Earned Income Exclusion (FEIE)
The FEIE gives Americans abroad the ability to exclude a portion of their foreign earned income (e.g. salary, wages, commission) from taxation. In 2024, the FEIE allowed Americans to exclude up to $126,600 from taxation. That number increases each year due to inflation — in 2025, you can exclude up to $130,000 under the FEIE.
You’ll need to pass one of two tests to qualify for the FEIE: the Physical Presence Test or the Bona Fide Residence Test. Passing either one also qualifies you for the Foreign Housing Exclusion, which helps offset the costs of certain housing expenses like rent and utilities. To claim the FEIE and FHE, you’ll file Form 2555.
Reporting obligations
One of the factors that can complicate taxes for US expats is additional or different reporting obligations. Many expats must file reports like the:
- Foreign Bank Account Report (FBAR): For Americans with a total of over $10,000 across all foreign financial accounts
- Statement of Specified Assets (Form 8938): For Americans abroad with over $200,000 in foreign assets on the last day of — or over $300,000 at any point during — the tax year
- Note: Thresholds are different for married couples filing jointly and Americans living within the US
Resources:
- Personal Income Tax (PIT) Calculator: How to Calculate Personal Income Tax in Vietnam
- Vietnam – Individual – Tax administration
- Vietnam – Individual – Taxes on personal income
- Vietnam – Individual – Income determination
- Vietnam – Individual – Deductions
- Property taxes in Vietnam. How much do foreigners pay?
- Vietnam – Corporate – Other taxes
