Country Trading Profiles Vietnam - Taxes

Tax Rates

Consumption taxes

Nature of the tax

Value Added Tax - VAT

Tax rate

A VAT of 10% applies on consumption goods.

Reduced tax rate

There are 2 reduced rates:
- 0% on some exported goods and services, international transport, etc.
- 5% on agricultural products, water, medical goods and teaching aids, etc.

Consult detail guide of Vietnam Customs for more information.

Other consumption taxes

Luxury tax; special sales tax on cigarettes, alcohol, spirits and beer, vehicle with less than 24 seats, petrol, playing cards, joss paper and some air conditioners; excise tax on golf, discotheques, casinos.

Corporate taxes

Tax rate

Corporate tax

The general corporate tax rate is 25% but it can be different depending on the type of company.
Consult the General Department of Taxation for more information.

Tax rate for foreign companies: Consumption tax is applied the same for resident and non-resident.
Capital gains taxation: Capital gains are taxed as ordinary income, to the rate of 25%.
Main allowable deductions and tax credit: Deductions are possible in the case of preferential investments; factory relocalisations; modernization of technologies or assembly lines; depreciation; net operating losses; payment to foreign affiliates; special sales tax. For more information, consult the General Department of Taxation's website.
Other corporate taxes: Real property tax, social security contributions, stamp duty, foreign contractor withholding tax.

The Vietnamese government issued a decree on October 20 2011 raising dramatically fines on quoting prices in foreign currency or gold instead of quoting in the local currency VND, Vietnam dong. The penalty would range between VND 300 million to VND 500 million, about $14,000 to $ 24,000. Businesses paying in foreign currency or gold can also have their business license revoked.

Individual taxes

Tax rate

Individual Income Tax	Tax rates from 5% to 35%.
Less than VND 60,000,000 per year	5%
Between VND 60,000,000 and 120,000,000 per year	10%
Between VND 120,000,000 and 216,000,000 per year	15%
Between VND 216,000,000 and 384,000,000 per year	20%
Between VND 384,000,000 and 624,000,000 per year	25%
Between VND 624,000,000 and 960,000,000 per year	30%
From VND 960,000,000 per year	35%

Allowable deductions and tax credit: Tax deduction depending on familly status, deduction of charities contributions.
Special expatriate tax regime: No, but non-residents are subject to a flat income tax rate of 20%.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of countries having a tax convention with Vietnam.
Withholding taxes: Dividends: 0/5%, Interest: 10%, Royalties: 10%.
Bilateral agreement

We can indicate you which local taxes are applied to your product.

Sources of fiscal information

Tax Authorities: GDT
Other domestic resources: General Department of Vietnam Custom

Accounting Rules

Tax year: The fiscal year is from January 1st to December 31st.
Accounting standards: Vietnamese Accounting System (VAS).
Accounting regulation bodies: The Ministry of Finance
Accounting reports: The accounting structure comprises balance sheet, cash flow, trial balance and profits and losses.
Publication requirements: Companies have to hand in Financial Report annually, including Accounting Report to Tax Department of the city.
Professional accountancy bodies: VACPA
Certification and auditing: The annual financial statements of all foreign-invested business entities must be audited by an independent auditing company operating in Viet Nam: Deloitte, KPMG, Ernst & Young, PricewaterhouseCoopers.
Accounting news: Institute of Certified Management Accountants
Vietnam National Auditing Company
Accounting Magazine

COUNTRY TRADING PROFILES

Taxes - Accounting

Tax Rates

Consumption taxes

Corporate taxes

Tax rate

Individual taxes

Tax rate

Double taxation treaties

Sources of fiscal information

Accounting Rules