Vietnam

How you become a tax resident

You are a Vietnamese tax resident if you are present in Vietnam for 183 days or more in any rolling 12-month period beginning from the first day of arrival, or if you hold a permanent residence permit or a lease of habitual residence in Vietnam for 183 days or more in a calendar year.

The rolling 12-month rule means residency can be triggered across calendar years, not only within a single year. Expats on short-term rotations should track days carefully. Non-residents are taxed at a flat 20% on Vietnam-sourced employment income. Residents are taxed at progressive rates from 5% to 35% on all worldwide income.

Progressive rate schedule for residents

Rates apply to monthly income. A personal deduction of VND 11,000,000 per month applies. Dependent relief of VND 4,400,000 per dependent per month is available. Employment income includes salary, benefits-in-kind (housing allowances, school fees, flights) that exceed specified thresholds.

Capital gains treatment

Vietnam does not have a general capital gains tax in the Western sense. Instead, specific flat rates apply to gains from the transfer of defined asset classes:

Shares in Vietnamese companies: 0.1% of the transfer price (gross basis, not net gain). This applies to both residents and non-residents, and regardless of whether the transfer results in a gain or a loss. Real property transfers: 2% of the sale price (gross). Business capital transfer: 20% on the net gain if properly netted, or 0.1% on gross if the gain cannot be determined.

How foreign-sourced income is treated

Vietnam taxes resident individuals on their worldwide income, including employment income earned abroad, foreign rental income, foreign dividends, and foreign pension income. There is no territorial exemption for income earned outside Vietnam and not remitted. A Vietnamese tax resident receiving a UK pension while working in Vietnam is in principle taxable on that pension in Vietnam.

Double taxation agreements modify this where applicable. Where a DTA exists and applies, the treaty provisions determine which country has primary taxing rights and what rates apply. Vietnam has a reasonable treaty network but coverage is not universal, and the treaty text often needs to be reviewed against the specific income category.

Key DTA partners

Vietnam has DTAs with over 80 countries. Key provisions for European expats:

Can foreigners own property in Vietnam?

Foreign nationals can purchase apartments and houses in Vietnam on a leasehold basis, with an initial term of 50 years (renewable). Ownership is restricted to buildings in projects approved for foreign ownership. Foreign ownership within any approved project is capped at 30% of the total units for apartments and 10% of units in any ward for landed housing.

Foreigners cannot own land in Vietnam. All land is owned by the state under the Vietnamese constitution, and only land use rights (LURC) are transferred. Foreigners can obtain LURC on a leasehold basis. The rental income from Vietnamese property held by a foreign owner is subject to Vietnamese personal income tax.

Filing calendar

• 31 March Deadline for filing the annual personal income tax return (PIT finalisation) for the preceding tax year. Applies to individuals with income from multiple sources or where the employer has not fully settled tax.
• Monthly / quarterly Employers withhold and remit PIT on a monthly basis. Expats with employment income through a Vietnamese employer typically have PIT settled via payroll. Additional filing applies for other income types.
• 31 December End of the Vietnamese tax year. Annual PIT finalisation covers income earned 1 January to 31 December.
• 183 days Residency threshold. Rolling 12-month period from arrival date, or calendar-year basis for permit holders.