Doing business in Vietnam sounds easy to some foreign business, but it’s in contrast dealing with Vietnam law of accounting or tax. Every entrepreneur needs a trusted person or service for this sensitive matter. Most business activities and investments in Vietnam will be affected by the following taxes. :
- Corporate income tax (CIT);
- Various withholding taxes;
- Capital assignment profits tax;
- Value added tax;
- Import duties;
- Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance
contributions.
| Type of Tax | Tax Rate and Base | |
| CIT | 20% is the standard rate (preferential rates of 10%, 15%, and 17% are available where certain criteria are met) | |
| The rate of CIT applicable to firms operating in the oil and gas industry | Ranges from 32% to 50%, depending on the location and specific project conditions | |
| CIT for firms engaging in prospecting, exploration and exploitation of mineral resources (e.g. gold and precious stones) | 40% or 50%, depending on the project’s location | |
| Capital Gains Tax | 0.20% | |
| Branch Tax | Same as CIT rate | |
| VAT | – Standard rate: 10% on goods and services – A 5% rate applies generally to essential goods and services – A 0% rate applies to exported goods/services | |
| Special Sales Tax (SST) | Applies to the production or import of certain goods, including cigarettes, cigars, spirits, beer, autos, assorted types of petrol, air conditioners and the provision of certain services including casinos, golf clubs and lotteries. SST rates range from 10% to 150%. Exported goods are not subject to SST. | |
| NRT | Rates vary depending on the natural resource being exploited, from 1% to 40%, and are applied to the production output at a specified taxable value per unit. | |
| Payroll Tax: Social insurance | Capped at VND27.8 million As a percent of an employee’s salary: – 17.5% by employer – 8% by the employee – 3.5% by employee if foreign | |
| Payroll Tax: Health insurance | Capped at VND27.8 million As a percent of an employee’s salary: – 3.0% by employer – 1.5% from the employee | |
| Payroll Tax: Unemployment insurance | Capped at VND79.6 million As a percent of an employee’s salary: – 1% by employer (for Vietnamese citizens only) – 1% by Vietnamese employees | |
| Foreign Contractor Tax (Withholding Tax) | 0.1% to 10%, depending on type of business activity | |
To be advised in detail, you should contact a tax consulting firm in Vietnam.
Source: Vietnam General Department of Taxation – Ministry of Finance Date last reviewed: July 10, 2019