Personal Income Tax

Tax base and tax rate depend on the individual’s tax resident status, type of income and income source.

Tax resident status

Tax resident are individuals satisfy one of the following conditions:

• Being present in Vietnam for 183 days or more in a calendar year or 12 consecutive months counting from the first date of their presence in Vietnam;
• Having a place of habitual residence in Vietnam, which is a registered place of permanent residence or a rented house for dwelling in Vietnam under rental contract(s) with an accumulated lease term of 183 days or more.

However, an individual with regular residency in Vietnam who spends less than 183 days in the country during the tax year and cannot prove residency in another country is also considered a Vietnamese resident for tax purposes. To establish residency elsewhere, one must provide a Residence Certificate. In the case where an individual is from a country or territory that has signed a Tax Agreement with Vietnam and does not have regulations for issuing Residence Certificates, the individual must provide a photocopy of their passport to prove their residency period.

Non-resident are those who do not satisfy any of the conditions specified above.

Tax residents are subject to PIT on worldwide income, while non-tax residents are subject to PIT on Vietnam-sourced income.

Taxable income

Taxable income includes income from employment, businesses operation, investment, capital transfer, real estate transfer, royalties and franchising, gifts and inheritance.

Tax rates

PIT filing and payment

Employment income

For income payers: PIT is generally filed monthly, except taxpayers who qualify for quarterly VAT filing can choose to file PIT quarterly. Once the quarterly filing option is selected in the first quarter with a PIT filing obligation, it must be applied consistently throughout the calendar year. Income payers must finalize PIT annually by 31st March of the following calendar year. For terminated operations or company restructuring events, the PIT final return is due within 45 days from the date of occurrence.

For individuals filing PIT directly with tax authorities: PIT is filed quarterly. The annual PIT final return for employment income is due by 30th April of the following calendar year. As 30th April and 1st May are public holidays in Vietnam, the deadline is moved to the next business day.

Business income

Deadline for PIT filing depends on the PIT declaration method applied by taxpayers:

• Credit method:

• Monthly declaration: by the 20th day of the following month.
• Quarterly declaration:  the last day of the first month of the following quarter.

• Ad-hoc method: within 10 days from the date the tax obligation arises.
• Deemed method: no later than the 15^th December of the year preceding the tax year. The deadline for submitting tax declaration files in cases where lump-sum households use invoices issued by tax authorities, make retail sales on a per occurrence basis, is no later than the 10th day from the date on which revenue arises requiring invoices.