{"id":3083,"date":"2024-08-21T15:23:46","date_gmt":"2024-08-21T08:23:46","guid":{"rendered":"https:\/\/apluslaw.vn\/en\/?p=3083"},"modified":"2025-02-13T15:54:14","modified_gmt":"2025-02-13T08:54:14","slug":"personal-income-tax-in-vietnam","status":"publish","type":"post","link":"https:\/\/apluslaw.vn\/en\/research\/personal-income-tax-in-vietnam.html","title":{"rendered":"\u00a0Personal Income Tax in Vietnam"},"content":{"rendered":"

Personal Income Tax (PIT) is a concept familiar to both Vietnamese citizens and expatriates living and working in Vietnam. However, not everyone fully understands the regulations, declaration procedures, and payment methods. Apluslaw<\/a> <\/span><\/strong>will provide you with an overview of <\/span>personal income tax in Vietnam<\/b>, from definitions and tax rates to declaration and payment methods as follows.<\/span><\/p>\n

\"foreign
Lawyer consulting on foreign investment for enterprise.<\/figcaption><\/figure>\n

What\u2019s Personal Income Tax in Vietnam?<\/b><\/h2>\n

Personal income tax (PIT) in Vietnam is<\/strong> a tax levied on the income of individuals. This tax applies to various types of income, including wages, business income, investment income, and other earnings. Both residents and non-residents are subject to PIT, but the rates and scope of taxable income differ.<\/span><\/p>\n

\"personal
Personal income tax in Vietnam is levied on the income of individuals residing and working in Vietnam.<\/figcaption><\/figure>\n

Personal Income Tax Rates<\/b><\/h2>\n

When it comes to personal income tax rates, it\u2019s not just about how much you earn, but how much you get to keep after the taxman takes his share. The table below will make it easy for you to understand:<\/span><\/p>\n

Tax residents: Employment income<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n
Tax tier<\/strong><\/td>\nAnnual taxable income (million VND)<\/strong><\/td>\nMonthly taxable income (million VND)<\/strong><\/td>\nPIT rate (%)<\/strong><\/td>\n<\/tr>\n
1<\/span><\/td>\n0 to 60<\/span><\/td>\n0 to 5<\/span><\/td>\n5%<\/span><\/td>\n<\/tr>\n
2<\/span><\/td>\nOver 60 to 120<\/span><\/td>\nOver 5 to 10<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
3<\/span><\/td>\nOver 120 to 216<\/span><\/td>\nOver 10 to 18<\/span><\/td>\n15%<\/span><\/td>\n<\/tr>\n
4<\/span><\/td>\nOver 216 to 384<\/span><\/td>\nOver 18 to 32<\/span><\/td>\n20%<\/span><\/td>\n<\/tr>\n
5<\/span><\/td>\nOver 384 to 624<\/span><\/td>\nOver 32 to 52<\/span><\/td>\n25%<\/span><\/td>\n<\/tr>\n
6<\/span><\/td>\nOver 624 to 960<\/span><\/td>\nOver 52 to 80<\/span><\/td>\n30%<\/span><\/td>\n<\/tr>\n
7<\/span><\/td>\nMore than 960<\/span><\/td>\nMore than 80<\/span><\/td>\n35%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*The table is based on clause 2 Article 22 of <\/span>Law on Personal income tax<\/span><\/a>.\u00a0<\/span><\/span><\/p>\n

Tax residents: Non-employment income<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n
Type of taxable income<\/b><\/td>\nTax rate (%)<\/strong><\/td>\n<\/tr>\n
Business income<\/span><\/td>\n0.5 to 5 (based on the type of business income)<\/span><\/td>\n<\/tr>\n
Interest (but not bank interest)\/dividends<\/span><\/td>\n5%<\/span><\/td>\n<\/tr>\n
Sale of shares<\/span><\/td>\n0.1 (of sales proceeds)<\/span><\/td>\n<\/tr>\n
Capital assignment<\/span><\/td>\n20 (on net gain)<\/span><\/td>\n<\/tr>\n
Sale of real estate<\/span><\/td>\n2 (of sales proceeds)<\/span><\/td>\n<\/tr>\n
Income from franchising\/royalties<\/span><\/td>\n5<\/span>%<\/span><\/td>\n<\/tr>\n
Income from inheritances\/gifts\/winning prizes (excluding income from casino winning prizes)<\/span><\/td>\n10<\/span>%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*T<\/span>he table is based on the Law<\/span> on Personal income tax<\/span><\/a><\/span>.<\/span>\u00a0<\/span><\/p>\n

Tax residents: Business income<\/b><\/p>\n\n\n\n\n\n\n\n\n\n
Type of taxable income<\/strong><\/td>\nTax rate (%)<\/strong><\/td>\n<\/tr>\n
Distribution and supply of goods<\/span><\/td>\n\n

0,5%<\/span><\/p>\n<\/td>\n<\/tr>\n

Services, construction without provision of raw materials<\/span><\/td>\n2%<\/span><\/td>\n<\/tr>\n
Leasing of assets includes:<\/span><\/p>\n
    \n
  • Leasing of houses, land, shops, factories, and warehouses, excluding accommodation services;<\/span><\/li>\n
  • Leasing of transportation vehicles and machinery without operators;<\/span><\/li>\n
  • Leasing of other assets without accompanying services;<\/span><\/li>\n<\/ul>\n<\/td>\n
5%<\/span><\/td>\n<\/tr>\n
Acting as a lottery agent, insurance agent, or multi-level marketing seller;<\/span><\/p>\n

Compensation for breach of contract and other compensations.<\/span><\/td>\n

5%<\/span><\/td>\n<\/tr>\n
Production, transport, services attached to goods, construction including provision of raw materials<\/span><\/td>\n1,5%<\/span><\/td>\n<\/tr>\n
Other business operations<\/span><\/td>\n1%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*The table is <\/span>based on clause 4 Article 2 <\/span>The Law Amending and Supplementing a Number of Articles of the Laws on Taxes<\/span><\/a><\/span> and Appendix I promulgating Circular No. 40\/2021\/TT-BTC.<\/span><\/p>\n

\"personal
What is the personal income tax rate?<\/figcaption><\/figure>\n

Tax non-residents<\/b><\/p>\n\n\n\n\n\n\n\n\n\n
Taxable Income<\/strong><\/td>\nTax rate (%)<\/strong><\/td>\n<\/tr>\n
a) Income from capital investment<\/span><\/td>\n5%<\/span><\/td>\n<\/tr>\n
b) Income from royalties and franchising<\/span><\/td>\n5%<\/span><\/td>\n<\/tr>\n
c) Income from winnings<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
d) Income from inheritance and gifts<\/span><\/td>\n10%<\/span><\/td>\n<\/tr>\n
\u0111) Income from capital transfer<\/span><\/p>\n

Income from securities transfer<\/span><\/td>\n

20%<\/span><\/p>\n

0,1%<\/span><\/td>\n<\/tr>\n

e) Income from real estate transfer<\/span><\/td>\n2%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*The table is <\/span>based on <\/span>clause 2 Article 23 <\/span>Law on Personal income tax<\/span><\/a><\/span> and Clause 7 Article 2<\/span> The Law Amending and Supplementing a Number of Articles of the Laws on Taxes<\/span><\/a>.<\/span><\/span><\/p>\n

In conclusion, understanding the personal income tax rates in Vietnam is essential for effective financial planning, ensuring compliance with regulations, and optimizing your financial outcomes.<\/span><\/p>\n

Where to declare personal income tax in Vietnam?<\/b><\/h2>\n

According to Clause 8, Article 11 of <\/span>Decree 126\/2020\/ND-CP<\/span><\/a><\/span>, the location for submitting personal income tax finalization dossiers is determined as follows:<\/span><\/p>\n

1. Individuals with income from one source: Submit the dossier to the tax authority where tax declarations were made during the year.<\/span><\/p>\n

2. Individuals with income from multiple sources:<\/span><\/p>\n