Personal income tax in Vietnam Currently, the following individuals are included in the scope of personal income tax

• •

Vietnamese citizens being in Vietnam, or working or being on business trips overseas; Other individuals residing in Vietnam who do not have Vietnamese citizenship but reside indefinitely in Vietnam;

A foreigner residing in Vietnam for 183 days or more within a tax year will be considered a tax resident, unless tax treaties between Vietnam and other countries provide otherwise. A Vietnam tax resident is subject to progressive tax rates with the highest marginal rate of 40%, while a non-resident foreigner who stays in Vietnam from 30 to less than 183 days is subject to a 25% tax rate on Vietnam income, regardless the income being received inside or outside. Vietnam. Foreigners staying in Vietnam for less than 30 days in one year are not subject to personal income tax. Vietnamese nationals working in Vietnam can be subject to personal income tax up to 65% marginal (taking into account the surtax). This makes Vietnam a country with one of the highest tax rates in the region and worldwide. Expatriates or foreign individuals working in Vietnam are allowed to transfer their income abroad after income tax and other payroll withholdings have been paid. Foreigners not residing in Vietnam but having their income derived in Vietnam are not subject to PIT. Instead, they are subject to VAT and CIT in accordance with circular 05/2005/TT-BTC dated 11 January 2005 of the Ministry of Finance providing taxation regime for foreign organisations not having Vietnamese legal entity status and foreign individuals, doing business or having income in Vietnam. The income tax tariff for Vietnamese individuals is now: Level 1 2 3 4 5 Average monthly per capital income Up to 5,000 Over 5,000 up to 15,000 Over 15,000 up to 25,000 Over 25,000 up to 40,000 Over 40,000 Rate of tax (%) 0 10 20 30 40

Unit: 1,000 VND* The income tax tariff for foreign individuals is now: Level 1 2 3 4 5 Average monthly per capital income Up to 8,000 Over 8,000 up to 20,000 Over 20,000 up to 50,000 Over 50,000 up to 80,000 Over 80,000 Rate of tax (%) 0 10 20 30 40

Unit: 1,000 VND* (1 US$ = VND 16,000, 1 DKK = VND 3,100.00,


Sign up to vote on this title
UsefulNot useful