A different perspective on Vietnam’s economy and doing business in Vietnam. Make sure to  subscribe.

how to guides

cheat sheets


Personal Income Tax in Vietnam 2024: Quick Read

This article is sponsored by: your accounting firm here→learn more

There are a number of taxes that foreign business owners in Vietnam should be aware of. One of these taxes is Vietnam’s personal income tax which is particularly important for foreign businesses with local employees. With this in mind, this article runs through what this tax is, what it applies, and the key elements that apply to foreign business persons.

What is the Personal Income Tax in Vietnam?

Personal Income Tax in Vietnam–locally known as the PIT–is the tax applied to income earned within Vietnam. It is codified in the Law on Personal Income Tax legislated in 2007. This includes income earned on wages or returns from local investments and depending on the situation possibly income generated overseas. 

PIT for foreign employees

A tax resident for PIT purposes is a person that has been in Vietnam for 183 days or more in one calendar year; or that has a permanent residence in Vietnam either a property that they own or that the lease with a rental agreement.

This distinction is important in that non-resident taxpayers are subject to a flat 20 percent tax on their wages or salaries whereas resident taxpayers are taxed progressively.

What are Vietnam’s progressive income tax rates?

Vietnam has seven tiers in its progressive tax rates. The percentage of income tax charged increases as the income generated increases. Note that there are also flat tariffs on capital gains, prizes, and inheritances, however, these generally do not apply to foreign entities. That said, the are detailed in the linked Personal Income Tax Law in Article 23.

Progressive income tax rates, Vietnam, VND millions

1Up to 60Up to 55
2Between over 60 and 120Between over 5 and 1010
3Between over 120 and 216Between over 10 and 1815
4Between over 216 and 384Between over 18 and 3220
5Between over 384 and 624Between over 32 and 5225
6Between over 624 and 960Between over 52 and 8030
7Over 960Over 8035

Double taxation agreements

Vietnam has double taxation agreements with most countries in the world. Essentially these agreements allow for two-way communication between tax departments in different countries to ensure tax payers are not taxed twice in two different jurisdictions. For example, a taxpayer from another country who pays tax in Vietnam will not be charged tax in their home country if there is a double taxation agreement in place.

What’s next?

Vietnam’s personal income tax regime is relatively straightforward in theory, however, its implementation is somewhat more complex. Vietnam’s tax bureaucracy has a lot of moving parts, and processes and procedures are not always consistent across provinces. With this in mind, foreign businesses looking to keep up with the latest developments in tax regulations should make sure to subscribe to the-shiv.


get connected with an expert
contribute a guest post
send a letter to the editor
submit a press release

latest news

Vietnam-US Trade Tracker: May 2024 Update [data set]

The United States is the biggest buyer of Vietnam’s exports and together the two countries engage in over US$100 billion worth of trade each year. This tracker looks at what is imported from the US and exported to the US from Vietnam using the most recent data available.

Read More »

Proposal to increase foreign ownership limits in airlines in Vietnam rejected

The Vietnam airline industry has been struggling broadly as a result of government regulated ticket prices, increasing fuel costs, and a debt hangover from the COVID-19 pandemic when the industry more-or-less ground to a halt. Bamboo Airways, in particular, only took to the skies in 2019 the year before the pandemic broke out. It also started life as a subsidiary of FLC Group which has been heavily mired in controversy after its leader was arrested back in 2022. This saw the airline spun off but the new independent entity has never had much success and has repeatedly downsized its fleet and the number of routes it offers…

Read More »

Adidas, New Balance suppliers struggling to find workers in southern Vietnam

Some of the challenges raised in this article, with respect to hiring workers, is that workers have more job options other than factory work, workers no longer need to move to population centres with many manufacturing operations opening in tier two cities and provinces, and workers that moved back to their hometowns during the COVID-19 pandemic have still not returned on the back of the general uncertainty that the pandemic created.

Read More »

Korea’s Daewoo looking at making cars in Vietnam

Vietnam’s automotive industry is huge but dominated by motorcycles. That said, cars are becoming more popular with just shy of 5 million registered vehicles at the end of 2020. This does, however, represent just 5 percent of the population of 100 million people which means there is plenty of room for car sales to grow…

Read More »

Russian president could be in Vietnam next week: Reuters

Vietnam has remained cordially with Russia throughout the Ukraine War. The Southeast Asian nation is heavily dependent on Russia for its arms supplies but also has a strong bond with the country on account of their similar political pasts. This has seen Russian tourist arrivals grow by 80 percent in the first five months of this year over the first five months of 2023 and…

Read More »

advertising enquiry

submit a press release

Note that it will be marked as a press release/sponsored post.

guest post

We publish guest posts of 800 to 1000 words from experts who have something unique to say on topics relevant to our audience. 

get connected with an expert

letters to the editor

We review letters for quality and authority and generally only publish views that add to the discussion from experts in their field.